Open a shop in Tesco?!!

David Earle · Jul 30, 2010

I'm always browsing the "shops to let" listings, and today I found some small units within a newly developed Tesco store. The rent is £4125pax (on a 5 year lease).

If I could get a 6 month lease I'd definitely give it a go - otherwise there's no way of knowing if it'll work out or not. I'm not normally one to "dip my toe" (I prefer to take confident strides forward) but the inside of a Tesco supermarket is a different playing field.

What do you guys think? And also, what kind of business do you reckon would do well in a Tesco?

Richie N · Jul 30, 2010

They seem to be including Greggs, Subway and Ladbrokes in these Extra stores lately.

David Earle · Jul 30, 2010

I have no idea if a t-shirt printing shop/kiosk would work. But I'm keen on finding out...

Faevilangel · Jul 30, 2010

tshirtprintingman said:
I have no idea if a t-shirt printing shop/kiosk would work. But I'm keen on finding out...

Don't tesco offer this themselves on the photo kiosk? They will print a photo onto a t-shirt.

Just think of the footfall, you would need to offer some sort of 1 hour delivery like Tesco do. Get them while they are there.

Tesco should be be able to tell you their weekly / monthly footfall and average spend etc so you can make a better decision.

We have a moderate sized extra in our town, and the average footfall is 33k per week, in a town of 25k people (ish).

papverpoppies · Jul 30, 2010

Richie N said:
They seem to be including Greggs, Subway and Ladbrokes in these Extra stores lately.

I can see why those stores would do well, but not sure about t-shirtprinting, does tesco attract enough of the people who would stop and buy this type of product, I would say no, (is this was you intend) or are you looking to whatever you think there might be a call for?

Hairdressers would do well - park, shop and get your hair done, or manicure etc.
Maybe a good florists, as the flowers in supermarkets are rubbish (and remember that Tesco does attract a more affluent market),then some supermarkets.

The problem is finding something that Tesco themselves do not sell.
The outlets the OP mentioned are all well known household names and liked.
Take out food is always a winner - how about a coffee/cup cake stall.

I wonder if Tesco stipulate what you can and cannot sell!

I remember when the local ASDA had small shops within, there was a chemist, jewellers, dry cleaners, all gone as not enough trade.

Poppy xx

360interactive · Jul 30, 2010

papverpoppies said:
I can see why those stores would do well, but not sure about t-shirtprinting, does tesco attract enough of the people who would stop and buy this type of product, I would say no

I would say Tesco would attract the same individuals as any high street location, perhaps more. You get a huge variety of different types of people shopping in a tesco, and those that do will be there at least once a week.

T shirt printers seem to survive in shopping centres, so why not a tesco store?

papverpoppies · Jul 30, 2010

360interactive said:
I would say Tesco would attract the same individuals as any high street location, perhaps more. You get a huge variety of different types of people shopping in a tesco, and those that do will be there at least once a week.

T shirt printers seem to survive in shopping centres, so why not a tesco store?

Look at the age group of the majority of people who shop in Tesco, hardly the same as the wide range that use a shopping centre.

I have had my food delivered from Tesco for almost 2 years, and according to some of their delivery men, Tesco shoppers are not the most adventerous (and as they deliver the stuff day after day) they should know.

I think it also depends on what neck of the Country the OP is in, because a T- shirt printing business would not do well in my neck of the woods.

Poppy xx

FaerieB · Jul 30, 2010

Ditto Poppy, although the rent is at least reasonable.

My concern is if it's worth doing they do it themselves, unless it's a complete niche of course. I should imagine if it was just making you a small wage they would leave you alone but, if whatever you're doing works and works well, they may well jump onto it and leave you out in the cold.

Denise x

Zeal · Jul 30, 2010

papverpoppies said:
Look at the age group of the majority of people who shop in Tesco, hardly the same as the wide range that use a shopping centre.

Depends where the Extra store is: My local Extra store is in a shopping centre called St Stephens... tons of different shops there targeting all ages groups.

The store is also constantly full of a wide mxied group of people

T-Shirt printing - would certainly work here

papverpoppies · Jul 30, 2010

Zeal said:
Depends where the Extra store is: My local Extra store is in a shopping centre called St Stephens... tons of different shops there targeting all ages groups.

The store is also constantly full of a wide mxied group of people T-Shirt printing - would certainly work here

Which is what I said in an earlier posting....location, location location.
The store has got to be in the centre, and not on the outskirts where a car is needed - as this will seriously affect the type and age of shopper.

Poppy xx

papverpoppies · Jul 30, 2010

Zeal said:
Depends where the Extra store is: My local Extra store is in a shopping centre called St Stephens... tons of different shops there targeting all ages groups.

The store is also constantly full of a wide mxied group of people T-Shirt printing - would certainly work here

There must be t-shirt printing shops already though, in that shopping centre.
So what any new store need to offer to make it different.

Poppy xx

Jon236 · Jul 30, 2010

I may be living in 1999 or some sort of pre-historic bubble, but does anyone do online Tshirt printing? Surely you'd be better off being the snapfish of tshirts than getting a few people get tshirts printed while they're in tescos?

papverpoppies · Jul 30, 2010

Jon236 said:
I may be living in 1999 or some sort of pre-historic bubble, but does anyone do online Tshirt printing? Surely you'd be better off being the snapfish of tshirts than getting a few people get tshirts printed while they're in tescos?

Stacks of online printing for t-shirts, with bags of designs to choose from, which I suspect is where a retail outlet would perhaps struggle to compete, on the choice level.

But, on the plus side with the store you can get it there and then, if you want to wear it that night.

I guess there is also the element of impulse buying with a store.

Poppy xx

Matt1959 · Jul 30, 2010

so you can rent a "small unit" within a Tesco store (op said store not Tesco Extra) for around £80 a week. This is way cheaper than a stand in a shopping mall and has to be huge value for money surely....which begs the question, how much does Tesco need to see back in terms of sales per square foot. Is it really more profitable for them to give over a small part of their store for £12 a day????

kcling · Jul 31, 2010

Our company is spending all rental, revotaion, stock etc to those who wan to open our shop,
u can Pm me if u interest.

Arsh4d · Jul 31, 2010

Would an indian fastfood outlet work?
Burgers, Donner kebabs/Chicken n Chips etc...

adventurelife · Jul 31, 2010

The rent quoted seems very, very cheap. Sure you have the correct?

One thing that needs considered is what ever the footfall be it 30k or 40k their is a fair chance that 80% of that footfall is the same people week in week out.

That will impact a lot on the type of product to be sold.

However, OP can you confirm that rent is per year?

movietub · Jul 31, 2010

This is definately in TESCO's is it?

Many of the new 'Extra' stores are built within a retail centre that TESCO also owns and operates. So within a TESCO retail premesis, but not within TESCO itself.

Either way the rent seems increadibly low. You could make a business out of almost anything with rent that low and footfall that high.

David Earle · Jul 31, 2010

According to the letting agent's particulars, the rent quoted is correct (per annum).

You'd be suprised at the types of people of get t-shirts printed. Everyone seems to think it's just young people - but it's actually very rare I get younger customers in my shop in Worcester. (My Birmingham shop is mainly younger people though). Very wide range of customer types all wanting different weird & wonderful things printed onto t-shirts for a massive variety of purposes.

User abner needs kicking off the forum, for copying & pasting/spamming the forum.

movietub · Jul 31, 2010

tshirtprintingman said:
According to the letting agent's particulars, the rent quoted is correct (per annum).

Wow. Sign the lease on Monday, figure out how to use it later on. Selling frozen tortoises would probably be a good enough business in that location, on those terms.

Really I'm shocked it's so cheap.

Rhyl Lightworks · Jul 31, 2010

The rental seems incredibly low, but how big is the unit, is it in the Tesco foyer or hidden away in some little visited part of the store?
I have looked into going in supermarket foyers before, and have always been put off by the high rental or small size or both. Tesco will also probably put restrictions on what you can sell - they don't want competition in their own premises.

As a rule of thumb, I would say look to sell products that the supermarket doesn't do, but which people who frequent these places might buy on impulse (easier said than done).

Barrie

papverpoppies · Jul 31, 2010

I bet there is a catch (or at least something in this for Tesco) to allow others to rent even a small amount of space, goes against all the odds from a company that states it needs and intends to get more floor space than ever.

Tesco do not give a jot about small traders!

Maybe the first year rental is good, and then they wap up the charges, maybe this is a PR exercise because they are after something else in the Town.

They put money into building bridges, fire stations, buy up empty property so they can get their own way, so be careful!

Good Luck.

Poppy xx

chris.quinn89 · Jul 31, 2010

Where is this being offered? I really can not believe how low that rent is....

What about a "cash generator" somewhere people can bring in their unwanted mobile phones, DVDs, CDs, games consoles, console games etc. You then buy it from them & resell at a slightly higher price either in store or online via ebay or similar...

adventurelife · Jul 31, 2010

Like most others here I just cannot get it into my head that is the rental figure.

If it was I would be signing leases in every single one I could find asap

Something does not stack up. Tesco are normally exceedingly hard to deal with and squeeze the last ounce out of every deal and that rent is a give away, something is wrong.

movietub · Jul 31, 2010

Maybe enquire as to whether or not it's possible to sign a 3 year deal. If the maximum term is 12 months before renewal then you can assume a rent hike.

Although even then it seems to good to be true. A big TESCO's will bring about a million people past your door each year. It's not an exageration to say that you could sell almost anything with odds like that.

I beg the OP to keep this thread upto date and let us know how this pans out.

papverpoppies · Jul 31, 2010

Is this service still being provided I wonder?

It does say small booths, so how small is small?

Poppy xx

movietub · Jul 31, 2010

papverpoppies said:
Is this service still being provided I wonder?

It does say small booths, so how small is small?

Poppy xx

Girlfriend worked at Thomas Cook when that article was written - teletext holidays is being closed down, although the process will take some time.

This was probably an excercise to transfer the brand before scrapping it. When was the last time you used teletext?!

papverpoppies · Aug 1, 2010

movietub said:
Girlfriend worked at Thomas Cook when that article was written - teletext holidays is being closed down, although the process will take some time.

This was probably an excercise to transfer the brand before scrapping it. When was the last time you used teletext?!

Never, thats why I was surprised at Tesco allowing it, but then again, perhaps its the sort of 'trade' they are after, on its way out, and no threat to them.

Poppy xx

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