Tesco takes on weight watchers in a new diversification

I’m left feeling a bit gobsmacked by Tesco’s latest diversification into non-food sales. Not content with selling the food and drink that helps us pile on the weight, tesco has just launched a new weight loss business.

The claims made by the early visitors to the Tesco Weight Loss Retreats are pretty impressive. The thought of losing a stone in a week is attractive, and I’d love the exercise bit.

It will be interesting to see how this part of Tesco’s business takes off. They have achieved some impressive public relations coverage, using the tried and tested technique in the travel sector - invite a journalist along to sample the “holiday”.

However, I suspect that the capacity of the single location in Devon will be a constraint on growth initially. Say all 50 places are taken (£1000 each) for all of the twelve weeks on offer during 2008. That would be revenue of less than £1m.

If the service takes off - and there seems little reason to doubt it will, then I suspect the franchise route will be taken to offer Tesco Weight Loss Retreats in a location near to you.