Tesco signs deal with Arcadia that will see some of its biggest brands sold in supermarket
Tesco has agreed a deal with Arcadia that will see the clothing giant sell some of its biggest brands in supermarkets.
Arcadia, run by billionaire Sir Philip Green, will open versions of its Dorothy Perkins, Burtons and Evans outlets in select Tesco stores across the country.
“Customers in the five locations told us they’d like to see more fashion options in their local area”
Shoppers in Horwich, Culverhouse Cross, Chesterfield, and Woolwich will be able to buy items from all three Arcadia brands in their local Tesco supermarket, while only Dorothy Perkins and Burtons will open in Bradley Stoke.
In a separate agreement, Tesco will also provide space for Claire’s Accessories, Sock Shop and Pavers.
Tesco said the move will ‘complement’ its own clothing range, F&F
The brands will “complement” its own clothing label, F&F.
Chief executive Dave Lewis is attempting to turn around Tesco after a £263m fraud at the UK’s largest retailer and a subsequent boardroom shake-up. Operating profits fell 55pc to £354m in the first six months of the year, as like-for-like sales dropped 1.1pc.
Amid an ongoing grocery price war, the Arcadia deal signals Mr Lewis is attempting to spark growth and entice customers into stores by focusing more on non-food items and branching out from F&F.
“We’re always looking at new ways our stores can best serve the needs of local customers,” a Tesco spokesman said.
“Customers in the five locations told us they’d like to see more fashion options in their local area, so we decided to trial introducing some great brands to each store which complement our existing offer.”
Tesco’s deal, which was first reported by Retail Week, comes after Sainsbury’s announced it is revamping its stores in a bid to boost sales. The supermarket chain is to open smaller shops in 1,000 locations accross the UK to appeal to customers who only have time to buy a few essential items.