This month, Tesco announced it would purchase the business entirely, a transaction that will allow the supermarket to showcase its upmarket credentials to affluent shoppers. Just as important, having Euphorium bake breads on the premises will differentiate Tesco from its discount competitors--a key element when grocery retailers often rely on price rather than quality for marketing power.
Tesco has been struggling to redefine itself and regain its financial strength after stumbling with overseas expansion and other problems. Euphorium has earned a good reputation amidst increased consumer interest in high-quality food, and for Tesco, this in-store bakery will be a meaningful point of differentiation in the high-stakes grocery industry.
