Tesco Hungary Moves Towards Retail Parks
- 2 May 2022 5:01 PM
- Hungary Around the Clock
Tesco has intentionally reduced its sales area in its shops, thereby reducing the shopping time for customers as it moves towards a retail park model, creating an opportunity to attract other tenants that offer other services, CEO of Tesco Magyarország Zsolt Pálinkás told Pénzcentrum in an interview.
Ten years ago an average shopper was very happy to spend two hours in a store, looking at the selection, whereas now they want to see the products while only spending up to 45 minutes in the shop, he said.
Pálinkás observed that turnover is not everything when it comes to profitability. It is very important, he added, but Tesco is think-ing in more complex terms, as the most im-portant thing is customer satisfaction and profitability.
He pointed out that retail generally oper-ates at a small profit margin worldwide. The total profit is typically 2-5% of sales revenues as about 65-70% of revenue goes to suppli-ers, and the rest is used to finance the operation, logistics and wages.
Tesco has stopped purchasing Russian products in accordance with current directives. A total of 15 products were taken off the shelves, all of which were spirits, mostly vodkas.
MTI Photo: Csaba Krizsán
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