Tesco Case Study

COMPANY OVERVIEW

Tesco is the largest retail chain in the UK (31% market share), and the world’s third largest grocery retailer with operations in 12 international markets, & operating over 3,260 stores. The group operates through multiple store formats, including Extra, Superstore, Metro, Express and hypermarkets. Its stores stock roughly 40,000 food products. In addition, the group also sells nonfood items including electrical goods, home entertainment, clothing, health and beauty, stationery, kitchen utensils, soft furnishings and seasonal goods such as barbecues and garden furniture in the summer. The group also markets products under its own labels at three levels: Value, Normal and Finest.

Tesco is headquartered in Hertfordshire, the UK. The chain employs over 450,000 people in its businesses around the world and aims to deliver a consistently strong customer offer on every visit and every transaction by focusing on the Group's core purpose: to create value for customers to earn their lifetime loyalty. This core purpose is delivered through the Tesco values: no-one tries harder for customers and treat people how we like to be treated.

Since Tesco was founded in 1924, the company has continually grown and developed as the food retailing market has changed, responding to new opportunities and pioneering many innovations. Today it is Britain’s leading food retailer and the world leader in grocery internet shopping. It is currently building leading market positions in several continents including Central Europe, Asia & North America.

In the 1990s, Tesco started to expand its operations outside the UK. In Eastern Europe, it has met growing consumer aspirations by developing stores in Ireland, Poland, Hungary, Slovakia, Czech Republic and Turkey. It has also expanded into Thailand, Malaysia, South Korea, Japan and China, and most recently the USA.

The group operates over 1,988 stores in the UK, its largest geographic market. Apart from regular groceries, the UK stores also have gas stations. The group has become one of UK's largest independent petrol retailers. Furthermore, the group has a joint venture with Royal Bank of Scotland to provide personal finance (Tesco Personal Finance) in the UK.

Tesco operates approximately 95 stores in the Republic of Ireland, 280 stores in Poland, 101 stores in the Hungarian market, 84 in Czech Republic, 48 in Slovakia, 30 in Turkey, around 47 stores in China, 109 stores in Japan, 370 stores in Thailand, 91 stores in South Korean and 19 in Malaysia. The group provides online services through its subsidiary, Tesco.com. The group also