x Abu Dhabi, UAEFriday 21 July 2017

Tesco products set to arrive on UAE supermarket shelves

All 31 Choithrams branches across the Emirates will carry the range.

Tesco products are to be stocked by Choithrams stores across the UAE. Stephen Shaver / Bloomberg News
Tesco products are to be stocked by Choithrams stores across the UAE. Stephen Shaver / Bloomberg News

Tesco products are set to arrive on the shelves of Choithrams from the end of the month.

Details of the partnership with the Dubai-based supermarket chain are set to be announed next week.

The British grocers’ private label products will include grocery, frozen, health and beauty, and non-food products. All 31 Choithrams branches across the Emirates will carry the range.

Choithrams will not be the first company to bring Tesco products. In February, Tesco’s budget clothing line F&F opened a store in Al Hamra mall in Ras Al Khaimah, with another three stores in Abu Dhabi planned by June, in collaboration with Al Futtaim.

In its home market, Tesco is struggling in the face of competition from discount grocery stores such as Aldi. Earlier this month, it slashed prices of more than 30 staples, including eggs, sugar and bread. While its market share has been declining, it is still the leading supermarket chain with 260 stores in the UK and its current market share stands at 28.6 per cent, according to research firm Kantar Worldpanel.

Philip Clarke, Tesco’s chief executive, warned of the tougher trading environment as the company reported a 6 per cent fall in annual group trading profit to £3.3 billion last week.

It has reduced investments in Europe and exited the US market.

Tesco is now focusing on what Mr Clarke called “high-return investments” in South Korea, Malaysia and Thailand besides establishing partnerships with Hong Kong-listed retailers CRE in China and Indian conglomerate Tata.

ssahoo@thenational.ae

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