Arcadia to open more concessions in UK Tesco stores

By

Sandra Halliday

Published
Nov 18, 2016

Arcadia is expanding its tie-up with UK supermarket giant Tesco and will open more branches of its major fashion retail brands in Tesco’s larger stores.

The two firms are currently looking at available space to potentially open several dozen more Dorothy Perkins, Burton, Evans and Wallis concessions. The two first partnered around a year ago when 14 Arcadia concessions opened in five stores around the country.

The retailers said four more Tesco stores will host another six concessions before year-end with Tesco also opening new concessions for wellness retailer Holland & Barrett at the same time.

Arcadia has been looking for locations to replace the dozens of concessions it lost after the closure of BHS last year and the smaller high street locations it has closed in response to weak visitor traffic.

The move comes as UK supermarket food and drink margins are shrinking and growth across fashion verticals is not happening fast enough to transform company bottom lines.

British retailers are looking for greater opportunities to maximise revenue from each square foot in store. Rival Sainsbury’s has done this by buying Argos and by opening Mini Habitat concessions in several larger supermarkets.

Arcadia owner Sir Philip Green said the first concessions drew strong shopper response and the two companies hope to grow the deal further.