Tesco has awarded a £35m shopping trolley contract to Wanzl to supply and manage shopping trolleys to Tesco stores in six European countries and Turkey.
Wanzl has begun shipping the first of its trolleys to more than 4,000 Tesco stores in Poland, Czech Republic, Hungary, Slovakia, Turkey, Republic of Ireland and the UK. The contract covers the next three years, with a possible two year contract extension to follow.
Managing director of Wanzl UK Group, Dean Rolland, said confirmation of the contract by Tesco earlier this year was an important breakthrough for Wanzl with one of the largest retailers in the world.
“For years, Wanzl has set the quality and performance benchmark for shopping trolleys around the world and this is significant recognition of the cost-saving and service benefits which an investment in original quality can deliver. We are delighted this also marks a return to European-based supply for Tesco after a number of years of non-CE procurement for shopping trolleys.”
Rolland said the contract signaled a new-found appreciation of the ‘low lifetime cost’ ownership model endorsed by Wanzl, providing the best long-term value proposition for the customer.
“The contract also creates the possibility of introducing Wanzl’s cost-effective and eco-friendly Reviva remanufacturing option to further extend original service life and provide the best possible return on these valuable assets.
“In the UK, Wanzl’s national Trolleywise trolley retrieval service is included in the contract agreement to further minimise trolley losses and deliver a community environmental benefit for Tesco,” said Rolland.
The Tesco shopping trolleys will be supplied in a variety of sizes and styles, and are expected to provide a five to seven year original service life in normal operating conditions. This represents a significantly higher length of service when compared with trolleys currently being retired from fleets in Europe and the UK, said Wanzl.
Category buying manager for Tesco, Peter Black, said its investment in Wanzl shopping trolleys would contribute to an enhanced experience of the store for Tesco customers in Europe.
“This is in line with recent far-reaching Tesco initiatives to bring leisure to shopping. A quality trolley experience contributes towards a more enjoyable shopping outing which encourages return visits, ultimately driving footfall and revenue.”
Black said quality had been a key driver with all stakeholders throughout the tender process, with an overall weighting of 60% for quality and 40% for cost emerging as key criteria.
“We are working closely with Wanzl as a strategic partner to deliver innovation, convenience and efficiency for customers and staff colleagues in key development markets for Tesco. The new trolleys are recognised as world-class and we are confident that they will deliver years of reliable service with the support of Wanzl’s extensive service and asset management infrastructure in Europe,” said Black.
All trolley and service requirements will be coordinated through Wanzl UK working closely with Wanzl’s extensive network of subsidiaries to store and deliver contract requirements.