As the first store to trial Tesco's new 'destination' hypermarket concept, Watford Extra is a must-see store! In this complimentary guide, food and consumer goods experts IGD tour the store and explore the key features which make it a more compelling and leisure-oriented shopping experience. We also look at how the retailer's strategy to 'build a better Tesco' is being delivered in-store. Taken from IGD's Retail Analysis service, http://www.retailanalysis.igd.com

1. Guide
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© IGD 2013

2. Hello and welcome
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3. Tesco Extra Watford – an introduction
•
Image Source:
Tesco WatfordIGDlocated Google mapsnorth west of
is Research, 20 miles
central London and is one of the retailer’s largest and
highest performing Extra stores in the UK. The store,
along with two other Extra stores in Coventry (West
Midlands) and Purley (Surrey) are the first to trial
Tesco’s new look ‘destination Extra’ format – the
retailer’s strategy to create more compelling retail
destinations from its c.50 largest hypermarkets in the
UK that have a sales area over 80,000 sq ft.
Central
London
Town Centre
Image source: IGD; Google
© IGD 2013

4. Facts & figures
Tesco Extra Watford: key information
Date & time of IGD visit
13 August 2013 (08:30 – 10:30)
Store format
Hypermarket
Address
239-241 Lower High St, Watford, Hertfordshire, WD17 2BD
Store opened
1988 (refresh launched 12 August 2013)
Checkouts
39
Opening hours
24 hours (Sat closes 22:00, Sun 10:00 – 16:00)
Peak trading hours
Weekday evenings and Friday / Saturday
Size
>80,000 sq ft / >7,400 sq m
Estimated food / non-food split
55% food / 45% non-food
Counters
Pizza, Hot Food, City Kitchen, Olives, Deli, Meat, Fish
Services
Giraffe (family restaurant), Euphorium Bakery, Harris + Hoole (café), Tesco
Direct Click & Collect, Phone Centre, Photo Shop, Opticians, Pharmacy,
Community Room
Competition
Sainsbury’s has a superstore on the edge of Watford town centre, 2.5km
to the north west, but the main competition comes from a Sainsbury’s
superstore and an Asda hypermarket, both located on the A41, 5km to the
north. The nearest Morrisons is located in Hatch End, 7.5km to the south
and the nearest Waitrose is in Northwood, 7.5km to the south west.
Source: IGD research
© IGD 2013

5. Key store initiatives and features
Re-establishing the ‘Extra’ difference
‘Food first’ in action
Stronger category authority
Relevant and exciting non-food
Digital integration throughout
Image Source: IGD Research
© IGD 2013

6. Tesco Extra Watford store layout
Beauty &
Personal Care
Baby &
Toddler
Electricals &
Entertainment
Cookshop &
Dining
Homeware
DIY / Car Care / Sport
Toys
Books & Magazines /
Stationery / Cards
Seasonal
F&F
Clothing
Health &
Wellbeing
Seasonal
Bakery
Fresh Food
Counters
Ready Meals
Meat & Fish
Dairy
World Foods
Ambient
Grocery
Household & Pet Food
Frozen
BWS & Soft Drinks
Food to
go
Scan &
Shop
Customer
Services
Your Community
Fresh
Produce
© IGD 2013
Image Source: IGD Research
Click &
Collect
Photo Phone
Centre Shop
Pharmacy Opticians

7. Re-establishing the ‘Extra’ difference
Exclusive services delivering something ‘Extra’
•
Image Source: IGD Research, Tesco
The front of store is
significantly different,
bringing together all of
Tesco’s new services under
one roof for the first time.
As well as crossing broader
boundaries between retail
and food service and
strengthening core
destination features, the
new services reposition
Tesco’s Extra format giving
it clear points of difference
versus competitors’
hypermarkets.
Image Source: IGD Research, Tesco
© IGD 2013

8. Re-establishing the ‘Extra’ difference
Giraffe restaurant promotes leisure appeal
•
Image Source: IGD Research
As part of its strategy to increase the destination and
leisure appeal of its largest Extra stores, Tesco acquired
the Giraffe restaurant chain in March 2013. Watford Extra
is the first store to see a Giraffe open. The restaurant has
its own separate external entrance, as well as one from
inside the store. The family-orientated restaurant
significantly strengthens the offer at Watford and will
encourage shoppers to stay longer at the store.
Image Source: IGD Research
© IGD 2013

9. Re-establishing the ‘Extra’ difference
Euphorium brings theatre to store entrance
•
Image the entrance Tesco’s new bakery partner Euphorium
Just inside Source: IGD Research
delivers fantastic ranges of artisan breads, sandwiches and
patisseries. The new bakery delivers a stronger quality perception
and provides a warm welcome to the store, with staff offering
samples to newly arrived customers.
Image Source: IGD Research
© IGD 2013

10. Re-establishing the ‘Extra’ difference
Harris + Hoole modernises the in-store café offer
•
Image Source: IGD Research
Tesco invested a stake in coffee chain Harris + Hoole in August 2012, so
that it could provide a stronger coffee shop offer in its stores. Watford is
the first Extra store to offer a Harris + Hoole outlet, delivering yet another
reason to visit the store and an alternative dine in option to that of
Giraffe. A lounge area towards the back of the café-in-store concept
provides an area away from the shop floor to relax and the adjacency next
to F&F gives this part of the store a strong leisurely appeal.
Image Source: IGD Research
© IGD 2013

11. ‘Food first’ in action
New layout brings food to front of store
•
Image Source: IGD Research
In April 2013 Tesco set out a clear strategy that its stores would follow a
‘food first’ approach, with general merchandise ranges then built
around food. Food has been brought to the front of the store in
Watford, with customers able to walk straight into produce, which has
been given more space, new grey tiled flooring, specialised lighting and
lower units that enhance product display and provide clearer sightlines.
Image Source: IGD Research
© IGD 2013

12. ‘Food first’ in action
New fixtures show off great quality fresh food
•
Image area IGD Research
The produceSource: uses new fixtures to both show off
Tesco’s fresh credentials and vary product display,
tempting shoppers to try new ranges and encouraging
greater dwell time. Across the department, well
thought out cross merchandising opportunites are
brilliantly executed on corner and over shelf units.
A fresh food
misting table
and giant ice
tub adds to
the theatre
and heroes
seasonal
produce.
Image Source: IGD Research
© IGD 2013

13. ‘Food first’ in action
New look fresh food counters
The new formatIGD Researchbrings the counters to the front of the store in a new island formation, but also features
•
Image Source: not only
an upweighted offer in terms of broader ranges, improved product display and new solutions. The new City
Kitchen counter, hot deli and pizzeria provide freshly made food-to-go and food-for-later meal solutions.
Image Source: IGD Research
© IGD 2013

14. ‘Food first’ in action
Shouting about expert credentials
•
Image Source: IGD Research
The counters showcase the work that Tesco has done to improve service
and staff across its store network over the last 18 months. The attractive
displays, hand written signage, personalised service, shop floor production
and new imagery all shout about Tesco’s food credentials and craft skills.
Image Source: IGD Research
© IGD 2013

15. Stronger category authority
‘Fresh Thinking’ creates added bakery interest
•
Image Source: IGD Research
Euphorium and Tesco’s new ‘The Bakery Project’ scheme is bringing added
personality, exclusive ranges and local relevance to the bakery category. It aims
to restore old school classics, train apprentice bakers, work with local suppliers
and support charities, but most of all make great value bread and cakes. As part
of the project a new product will be introduced every month.
Image Source: IGD Research
© IGD 2013

16. Stronger category authority
Food-to-go convenience and meal solutions
•
Image Source: IGD Research
Image Source: IGD Research
The food-to-go area at the front of the store
brings together both strong snacking and meal
solution ranges. The area is well merchandised
with the central island providing a salad bar
and a section that gets rotated throughout
the day. Meal deals, hot pies and pasties,
Krispy Kreme Doughnuts, healthy snacking,
ready meals, chilled BWS and a bank of five
dedicated self service tills, create a strong
shop-in-shop convenience store concept for
quick top-up shopping trips.
© IGD 2013

17. Stronger category authority
New BWS shop-in-shop concept
The•BWS department Research transformed to resemble that of a specialist
Image Source: IGD has been
liquor store. It has its own dedicated area with a more spacious layout, new
flooring and lighting, in-fixture refrigeration for wine, specialist fine wine
fixtures, educational signage and clearer category segmentation. The soft
drinks fixture has also been integrated to encourage cross purchasing.
A new cocktails fixture provides cocktail ideas
and brings together small measure spirits,
lemons and limes, mixers and other accessories.
Image Source: IGD Research
© IGD 2013

18. Stronger category authority
Clearer shopper navigation in core grocery
•
Image Source: IGD Research
Over-shelf signage has been installed across grocery
categories such as world foods, snacking and bakery,
helping deliver added personality to the categories,
but also navigate the shopper. In all the grocery aisles,
wood surround mods highlight ranges and provide
cooking inspiration and as in other departments,
cross merchandising is maximised throughout, with
features such as a dips fridge in the crisps aisle.
Image Source: IGD Research
© IGD 2013

19. Relevant and exciting non-food
F&F boutique a major step change
•
Image Source: IGD Research
Image Source: IGD Research
The new F&F boutique occupies the back corner of
the store, creating the ambience of a high street
fashion retailer. Tesco has clearly transferred
learnings from its standalone F&F stores in central
Europe and brought them back to Watford. The
separate checkout, variety of fixtures, mannequin
displays, fitting rooms, flooring, spot lighting and
dedicated staff, all deliver a modern and fashionable
experience away from the rest of the shop.
© IGD 2013

20. Relevant and exciting non-food
New look and feel for general merchandise
•
Image Source: IGD Research
With general merchandise spread along the back of the store,
Tesco has split the departments into dedicated zones. New
inviting merchandise displays give more space to the range, which
have been upgraded to give a more credible seasonal focus.
Varied fixtures and fittings plus ‘test and play’ stations promote
browsing and a department store ambience.
Image Source: IGD Research
© IGD 2013

21. Relevant and exciting non-food
One stop destination for baby and toddler
Baby has been given significantly more space in-store to
•
Image Source: IGD Research
create a destination for new parents, with hanging signage
showing sleep, gift, play, eat and bath areas. The department
is underpinned by the ‘Tesco Loves Baby’ brand that was
introduced in January 2013. As well as your traditional baby
products, the department brings together chilled food,
furniture, clothes and other essential accessories.
Image Source: IGD Research
© IGD 2013

22. Relevant and exciting non-food
Beauty builds on recent format experiments
•
Image Source: IGD Research
Learnings from trial stores such as Dudley and Woolwich
Extras and Bishop Stortford Superstore have clearly been
implemented in Watford. Dedicated fixtures with
specialist lighting, premium ranges, branded features,
experimental stations, specially trained staff and beauty
services deliver great authority and a credible offer to
compete with high street specialists.
Image Source: IGD Research
© IGD 2013

23. Relevant and exciting non-food
Dedicated area for ‘health & wellbeing’
•
Image Source: IGD Research
Image Source: IGD Research
Tesco has created a new ‘health and wellbeing’ zone, which
builds more of a feature for healthcare, nutrition, sports
supplements and health foods (e.g. Tesco Free From and
branded ranges). The pharmacy, which also offers a consultation
room, plus the opticians are both integrated into the offer,
creating a strong destination for the back corner of the store.
© IGD 2013

24. Digital integration throughout
‘Clicks & Bricks’ implementation in-store
•
AsImage Source: IGD Research & Bricks’ strategy, where it is looking to create a seamless experience between its
part of Tesco’s ‘Clicks
stores and its online offer, there are a number of features in-store that highlight how this is evolving.
A screen and promotion in the
snacking aisle promotes movie
rentals from Blinkbox, Tesco’s
digital entertainment service.
An ‘endless aisle’
screen in toys
allows shoppers to
browse the full
range and order
in-store.
An ipad in BWS helps
customers choose the
right whiskey.
A large Click and
Collect desk is
located along the
back wall, with
pods to order
Tesco’s full range in
each general
merchandise zone.
Image Source: IGD Research
Point of sale in clothing reminds
customers that more styles and
sizes are available online.
© IGD 2013

25. Additional features
Community focus creates stronger local appeal
•
Image Source: IGD Research
Tesco has installed a ‘Your Community’ space at
the front of the store, which highlights Tesco’s
charitable activity and also looks to create a
stronger bond with the local community from its
largest stores. The store also takes learnings from
Tesco’s Asian markets and features a new free to
hire community room. A blackboard at the store
entrance advertises activities that will be taking
place in-store and also provides contact details for
the in-house community champion.
Image Source: IGD Research
© IGD 2013

26. Additional features
Best of the rest…
•
Image Source: IGD Research
Tesco’s ‘Love
Every Mouthful’
campaign aimed
at championing
food was running
in-store.
A season’s best board at
the store entrance
immediately draws
shoppers attention to
food and product quality.
The retailer’s continuing
work to re-launch all 8k
core private label lines is
visible throughout, with
newly launched products
highlighted across the store.
Image Source: IGD Research
© IGD 2013

27. So what do we think?
1.
1 Tesco’s new destination format store at Watford is a huge step change
from the old store with strong features and services that will clearly
differentiate Tesco from its competitors’ hypermarkets.
2.
2 The store brings together 18 months of hard work under one roof, with
clear advances across all six parts of the retailer’s plan to ‘build a better
Tesco’ visible in-store.
3 With more space and prominence given to fresh food, Watford signals
3.
Tesco’s intentions that it is primarily a ‘food first’ retailer.
4.
4 The store is exciting and engaging for shoppers, pushing the format away
from one that is overly oriented towards operational efficiency. This will
create new challenges for staff in-store and Tesco’s operational model.
5.
5 The concept achieves its purpose of being a stronger leisure destination,
with improved, more relevant non-food ranges and specialist
departments that will generate footfall in their own right.
6.
6 Time will tell whether features from Watford, Coventry and Purley will be
rolled out to all of the retailer’s largest stores, but with all aspects
scaleable and affordable, this is a positive step in the right direction.
Image Source: IGD Research
© IGD 2013

28. Next steps
The store visit reports and photo gallery on Retail Analysis will help you stay up-to-date
with the latest store concepts and in-store merchandising tactics being rolled out by key
retailers around the world…
Please contact us to find out if your company subscribes
or to request a free, no-obligation trial:
E: retailanalysis@igd.com
T: +44 (0) 1923 851 956
W: retailanalysis.igd.com
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