Tesco and Scottish Widows Launch Joint Venture for Pensions Sales

Strategic Insights -

Tesco, the British supermarket group, has partnered with Scottish Widows, a leading life assurer, to launch a new joint venture, Tesco Life, which aims to sell pensions to the supermarket's vast customer base. The new company will leverage the Tesco brand to offer pension products to the 10 million people who shop at Tesco each week. Scottish Widows will handle the administration of the company's products, and David Graham, currently head of marketing at Scottish Widows, will lead the new venture.

Key Takeaways:

  • Tesco Life, a 50:50 joint venture between Tesco and Scottish Widows, is set to launch with the approval from the Department of Trade and Industry and the Bank of England, expected in the next few weeks.
  • The new company will use the Tesco brand to sell pensions to the supermarket's massive customer base, with 10 million people shopping at Tesco each week.
  • Scottish Widows will handle the administration of the company's products, utilizing their expertise in life assurance.
  • David Graham, currently head of marketing at Scottish Widows, will lead the new venture, bringing his 32 years of experience with the Edinburgh-based life assurer.
  • Graham's role at Scottish Widows will be split between two colleagues, Bob Gibson and Andy Frepp.
  • Tesco Personal Finance, launched in partnership with Royal Bank of Scotland in July 1997, has resolved issues with its initial deposit account, now offering satisfactory service to its 500,000 customers.

Statistics:

  • Tesco has 10 million customers who shop at the supermarket each week (Source: The article does not specify the exact source, but it is likely based on Tesco's publicly available customer numbers).
  • Tesco Life will be a 50:50 joint venture between Tesco and Scottish Widows (Source: The article does not specify the exact source, but it is a straight statement from the article).
  • Scottish Widows has been in business for 32 years, as reflected in David Graham's tenure with the company (Source: The article does not specify the exact source, but it is a direct statement from the article).
  • Tesco Personal Finance has 500,000 customers (Source: The article cites July 1997 as the launch date for Tesco Personal Finance).

Sources:

  • The article is unattributed, but based on context and language, it appears to be a source from a British newspaper or business publication.
  • Royal Bank of Scotland (Source: The article mentions the partnership with Royal Bank of Scotland but does not provide a specific link or date).
  • Scottish Widows (Source: The article mentions Scottish Widows as a partner in the joint venture but does not provide a specific link or date).
  • Tesco (Source: The article mentions Tesco as a partner in the joint venture but does not provide a specific link or date).