What The Papers Say: Tesco banks on customer goodwill

After Safeway tied the knot with Abbey National and Sainsbury’s with the Bank of Scotland, Tesco chose St Valentine’s day to end its nine-month relationship with NatWest in favour of the Royal Bank of Scotland.

After Safeway tied the knot with Abbey National and Sainsbury’s

with the Bank of Scotland, Tesco chose St Valentine’s day to end its

nine-month relationship with NatWest in favour of the Royal Bank of

Scotland.



To headlines of ’store wars’ and ’Tesco bust-up’, Tesco’s plan to expand

into financial services received widespread praise from the weekend

editions of the nationals. With mentions of menage a quatre partners

Direct Line and Scottish Widows, coverage focused on Tesco’s chances of

banking success on goodwill and good customer service.



Citing the opportunity for the Royal Bank to develop a greater presence

’south of the border’, finance correspondents were quick to warn of

tighter margins ahead and a rough ride for banks in general. NatWest’s

’we only found out from the press release’ PR machinery seemed to be

caught off-guard by the announced rupture, which many referred to

unconvincingly as ’amicable’. Tesco let the media carry its party line -

a PR dream come true.



Evaluation and analysis by Carma International.



Cuttings supplied by The Broadcast Monitoring Company. ’What The Papers

Say’ can also be found at: http//www.carma.com/carma.



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