Tesco chairman says customer experience is paramount after 'worst place on earth' blog

Tesco: reacts to unfavourable blog about its Haggerston store
Tesco: reacts to unfavourable blog about its Haggerston store

Tesco chairman Sir Richard Broadbent claims customer experience is more important than product following a blog describing a Tesco store as "the worst place on earth" going viral.

Broadbent, who was giving his first media interview since becoming Tesco chairman two years ago, said the blog about the Haggerston store was representative of a new world that is changing the face of the retail industry.

He told The Sunday Times: "The company that provides the best relationship with the customer will win — not through product, but through the best experience.

"Haggerston is what we are talking about. The world is becoming more volatile, things spread much more quickly, the groups that people trust have changed. We don’t defend problems, we tackle them. Any organisation has to be much more open, transparent, and responsive."

After the Tesco blog went viral, the supermarket responded rather than ignoring the issue, with one contributor to the blog stating, "they’ve hired staff and the place is full" after the store was drawn to the attention of Tesco senior management.

Alongside reacting quickly to social media, Broadbent conceded the pace of the internet’s impact on e-commerce has been "more rapid than we imagined".

He said: "There is the potential for a company that can compete in that space. In Britain we need that. We can’t just leave it all to Silicon Valley. We are doing it for good commercial reasons, but it matters for the country too."

In order to compete with Silicon Valley, Tesco has brought out its own tablet computer called the Hudl and created a digital campus in London to support its Blinkbox digital media business.

Broadbent said he could not predict if the Hudl would be a success, but explained it was part of a new strategy to be willing to "fail often and cheaply" to stay at the forefront of innovation.

He said:  "You have to choose between investment in a Hudl or a new store in Solihull. The store will make returns quickly, the Hudl is about the future. The board has to balance those two demands, and shareholders expect them to get that balance right."

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message