Finnish retail co-op S Group has announced a deal to stock 200 Tesco products in its stores under a new partnership with the supermarket giant.
Industry experts say the deal, which focuses on Tesco’s finest and Free From ranges, reflects a trend among Nordic retailers to adapt their ranges to suit new trends.
The partnership – which follows the launch in 2014 of a franchise deal between the co-op and Marks and Spencer – will make the range available in the co-op’s Prisma and S-market outlets, and Alepa stores in the Helsinki region.
Retail analysts IGD say it is also another example of businesses like Tesco exporting their private label ranges.
“This can be a win-win,” it says, “driving sales through a new channel, while the importer can use these ranges to differentiate themselves from the competition, potentially at a lower cost than developing new ranges themselves.”
Ilkka Alarotu, senior vice president for S Group’s retail business, said, “As part of our endeavour to match customer expectations, we are now addressing the increasing desire for pampering and luxury in everyday life.”
Vice president Katja Tapio added: “The introduction of Free From expands the selection of gluten-free products in S Group’s grocery stores. And best of all: these products are anything but free from flavour.”
Richard Stratton, head of wholesale & export of Tesco said: “We are delighted to be working with S Group in Finland to provide a range of great quality Tesco products, and we’re looking forward to offering their customers the opportunity to try them for themselves.”
Helsinki-based S Group, founded in 1904, consists of 20 regional co-ops operating around the country, in groceries, consumer durables, service station, hotel and restaurant services, agricultural supplies, and car sales.
In 2016, S Group’s retail sales amounted to approximately €11bn and it has a total of more than 37,000 employees.
