09 Apr 2008


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Tesco to drive Dobbies' 'green' and deli sales

Tesco

Dobbies

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Tesco is leveraging its 65% majority shareholding in the Dobbies garden centre chain with plans to expand its range of green products and local food halls.

The supermarket is working with Dobbies to introduce ‘environmental solutions’ including wormeries, irrigation systems and renewable energy technology.

Lucy Neville-Rolfe, Tesco’s legal and corporate affairs director and Dobbies’ chairman, said the environmental products went hand in hand with Dobbies’ core gardening range.

“I hope and believe we are on the verge of a revolution in green consumption in which more environment-friendly products become a realistic alternative for millions of consumers and not just the privileged few,” she said.

“Dobbies is perfectly positioned to be in the vanguard of this movement, and here as elsewhere, Tesco and Dobbies have much to learn and benefit from each other in the years ahead.”

At the same time, Tesco plans to work with Dobbies to develop its local sourcing and its food halls.

Dobbies already operates Farm Foodhalls, featuring delis and in-house butchers, in five stores in Scotland and six in England, including the newly opened Southport store.

Neville-Rolfe said these were examples of “ventures that customers can expect to see more of in years to come”.

The development plans accompanied Dobbies’ financial results announcement for the year ending 31 October 2007.

Despite a strong start, when particularly warm weather in March and April benefited sales to show double-digit growth at the half way stage, the wet summer meant the year ended with a 1.4% increase in like-for-like business.

Since the year-end, Dobbies said sales in the four months to February 2008 were up 3.1% on a like-for-like basis.

By Fiona Briggs

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