Tesco has been named as the retailer most likely to combat the economic recession in new research revealed today.
Accountants BDO Stoy Howard and Verdict Research said companies that excel in every channel will be best placed to withstand the downturn in consumer spending.
On the companies’ Survivability Index, which takes into account factors such as customer targeting and online branding, Tesco came out top, followed by Waitrose owner John Lewis and Sainsbury’s.
BDO head of retail Stoy Howard said: “Those who implement strategies to react appropriately to changing circumstances will be the ones who emerge in the strongest position from the current difficulties.”
“It simply isn’t just about blind cost cutting anymore,” he added.
Verdict consulting director Neil Saunders added this is the “most challenging period” retailers have ever faced.
Everyone will need to “work much harder just to stand still, he said, because the market is mature and “intensely competitive”.
Saunders concluded: “Being good will no longer be good enough to generate growth, retailers that want to increase their sales will have to excel in every way.”
Tesco has reportedly given new terms to alcohol suppliers as it looks to secure profits margins through the credit crunch.
