Retail news: Tesco builds non-food offer

The areas will also contain back-catalogue CDs and DVDs. The supermarket
is aiming to counter criticism from specialist retailers that its range
in such areas is too sparse and confined to mainstream selections.

The Barhill format features a number of interactive screens that show
clips from selected DVDs and CDs, through a system that uses directional
speakers, rather than headphones.

The initiative comes as Tesco trials its first non-food Tesco Homeplus
stores, in Aberdeen and Manchester. The 30,000 ft2 outlets do not sell
groceries.

Apart from the increasing non-food focus, Mason said Tesco's main
challenge over the coming months would be to ensure it continued to
react to consumers' changing purchasing habits, particularly with the
ongoing high-street slowdown.

'There is a lot of evidence that consumer spending is being highly
affected,' he said. 'If that turns out to be the case, this will be
reflected in our trade in-store.'

Mason added that Tesco's Christmas campaign would have an in-store
emphasis, focusing on its Finest ranges. 'Many people tend to upgrade to
Finest over the Christmas period,' he said.