Retail Arbitrage – Tesco

Welcome back to the Retail Arbitrage Series! This week we’re diving into Tesco’s a well known retail giant that still presents solid opportunities for retail arbitrage sellers. While Tesco isn’t as profitable as it used to be, especially since the toy section was taken over by The Entertainer, it’s still a great place to exploit clearance deals, reduced items, and seasonal sales across the store.

Tesco is especially powerful during nationwide promotions, where deals can be replicated across multiple locations. This makes it ideal for route based sourcing, and you can cover multiple Tescos in one trip, making the most of your fuel and time. Let’s break down exactly how Tesco works and how you can still make it a solid part of your RA strategy.

How Tesco Works

Standard Tesco stores and Tesco Superstores stores are large and structured into multiple sections, each of which can yield profitable items if you know what to look for. Tesco Superstores house the best selection of potential leads, with the variety and stock held being greater than a standard Tesco store. Stores tend to be split into the following categories:

• Toys Section: This used to be a major profit area for RA sellers, especially during Q4. However, since The Entertainer took over this section, it’s much harder to source from. Most sellers now skip it altogether.
• Stationery & Ink: Occasionally, you’ll find deals here during seasonal shifts or back to school. Worth a quick scan.
• DIY & Electronics: Look for Clubcard price drops on small appliances, electronics, and accessories. These can be quite profitable if discounted by over 50%.
• Health, Beauty & Personal Care: This section is great for white “Reduced to Clear” stickers, and often has a dedicated clearance section with leftover or end of line items. Clubcard prices also apply here.
• Gift Sets: Found year round but best around holidays. Clubcard offers often make these a great flip for Valentine’s, Mother’s Day, and especially Christmas.
• Seasonal Aisle: Along the back wall, this aisle rotates between holidays— Christmas, Easter, Summer, Halloween, etc. This section is prime for end-of-season clearance.
• General Clearance: You’ll also find random clearance racks around the store with grocery, homeware, and miscellaneous items, always scan here.

In Tesco, the key is to scan across departments and stay tuned into the sale cycles. Hidden gems are everywhere.

Where to Find Clearance

We touched on clearance previously, but here’s a more focused look:

Clearance items in Tesco are labelled with white “Reduced to Clear” stickers and can be found throughout the store. You’ll find these in places such as:

• At the end of aisles in the Health & Beauty and Stationery sections
• In standalone clearance sections grouped by department
• Grocery clearance racks somewhere in the main aisles, usually near back corners
• In the seasonal section (back wall), especially at the end of summer or holidays

These areas are the real money makers. Always scan anything marked “Reduced to Clear”.

Where to Find Profitable Items

Tesco is a hybrid sourcing store, you can source online as well as instore.

• Use Tesco’s website to find deals early
• Place Click & Collect orders to secure stock before visiting
• Build your RA trip around confirmed pickups to make every trip worthwhile

Best opportunities include:

• Clubcard prices, 3 for 2 and discounted products upto 50% or more, especially on:
  • Electronics
  • Garden items (like lawnmowers or BBQs)
  • Baby seats and equipment
  • Gift sets

Your top opportunities still come from Reduced to Clear items, scattered throughout the store. These offer the best ROI and are the ones that aren’t replicated online.

Best Time of Year for Tesco

Tesco can be hit or miss depending on the time of year. Here are the most profitable periods to focus on:

• January – Clearance on Christmas gift sets, electronics, and unsold toys (if available).
• March – Stock up before Mother’s Day, and grab gift set clearance right after.
• May – June – Look out for consumables like plasters, creams, and everyday beauty items. There are often system-wide markdowns on these.
• September – Time for garden clearance, patio items, BBQ gear, and accessories.
• October – November – Sun lotions and summer stock are cleared out. These can sell well all year round, so grab them if margins are good.
• Year-Round – You’ll always find rotating clearance items in various departments, so don’t sleep on random visits.

Pros & Cons of Tesco

Pros

• You can often order large amounts online for instore pickup, and then top up stock in person
• Nationwide sales let you replicate deals across multiple stores
• Unsold clearance stock is often reduced again, leading to massive ROI
• Most towns have multiple Tesco stores, making it easy to chain stores together in one trip
• Compatible with cashback apps for extra profit

Cons

• Nationwide deals can lead to bricked prices, so target fast sellers only
• The toy section is no longer viable, taken over by The Entertainer
• Store-only products are often limited in quantity
• Clubcard deals can tank quickly due to ease of access and visibility

Tesco Hacks

• Click & Collect + Online Sourcing: This gives you guaranteed pickups and helps plan your trip.
• Clubcard Stacking: Occasionally, you’ll find 3 for 2 promos + Clubcard discounts, especially in the beauty section. Scan everything and check signs to see stacking options.
• Multiple Store Routing: During nationwide sales, hit 3–5 Tescos in one day to maximise your haul.
• Cashback Apps: Use JamDoughnut, Cheddar, or EverUp every time you buy to stack up 4–6% cashback on top of your profit.
• Avoid Tesco Extra’s!