Every Little Helps

Richard Lambert, Chief Executive

It's been widely reported in the press and on the double glazing blogs that Tesco has launched a website offering windows, doors and conservatories.

The development is hardly a surprise.  We've know for some time that the major retailers, such as Tesco, Marks and Spencer and others, have been looking at how they can move into the home improvement market to take advantage of the Green Deal.  And the Government has vigorously encouraged them because it wants the Green Deal to succeed, and thinks that the best chance of that happening is if it can harness the kind of marketing savvy and customer service that drives success in the mass retail sector.

Tesco's marketing director, Simon Singleton, is quoted as saying "This is an exciting opportunity to drive a coach and horses through a seedy old sector."  Take a look at the website and you'll see what he means.  It is very Tesco, in its look and tone of voice. "Everyday low price … visibly different … home improvement without the hassle … You may have heard the horror stories. There is a better way.".  It takes all the urban myths about buying double glazing, counterpoints why their offer is different and focused on you, the consumer, and then publishes guide prices just to reinforce the message.  And you get double Clubcard points.

Of course, this isn't a supermarket suddenly retraining its staff and getting into manufacturing.  It's a joint venture with an internet-based handyman and home maintenance company, Job Worth Doing.

As far as I can tell, they're only offering PVC-U products at the moment.  But the direction of their thinking is clear; they will want to expand the scope and product range, so I wouldn't be surprised if they are already thinking about adding timber windows.  Look at what they've done in financial services, where they are now talking about aiming for a 10% share of the market, putting them on a par with Abbey and about half the size of Barclays.  They'll establish themselves with a firm reputation well in advance of the launch of the Green Deal next autumn and use that to build themselves up into one of the major players in the fenestration and home improvement markets.

There has already been some reaction along the lines of giant conglomerates threatening the future of the small business sector.  In the short term, I think this development is more worrying for the traditional PVC-U double glazing companies, because it's that market they're targeting.  If Tesco succeeds, then longer term, everyone in the fenestration sector will have to deal with the consequences.