Emin İnceEnrique Cabello Perez de la Lastra

Brief History1919: Jack Cohen founded Tesco, when he

began to sell surplus groceries from a stall in the East End of London.

1924: Tesco Tea Launched (Own First Product)1929: 1st Store Launched in UK1956: 1st Supermarket Opened2000: Tesco.com Launched2002: Tesco Goes International2009: Tesco Enters Clothing Segment2010: 1st zero carbon supermarket Launched

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Company Overview

www.tesco.com is recognized as the world’s largest online grocer, with a customer base of little less than 1 million and more than 250,000 orders a week.

www.tesco.com is recognized as the world’s largest online grocer, with a customer base of little less than 1 million and more than 250,000 orders a week.

Tesco is the third-largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 400,000 people

Tesco is the third-largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 400,000 people

Tesco’s market share of UK retailing is 12.5%.Tesco’s market share of UK retailing is 12.5%.

Tesco’s is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Established in 1924.

Tesco’s is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Established in 1924.

Company Overview

As of March 2008, Tesco have a store in every postcode of the UK.As of March 2008, Tesco have a store in every postcode of the UK.

Tesco now controls over 30% of the grocery market in U.K.Tesco now controls over 30% of the grocery market in U.K.

Tesco has moved into areas such as clothes, consumer electronics, consumer financial services, internet services, consumer telecoms and gas stations.

Tesco has moved into areas such as clothes, consumer electronics, consumer financial services, internet services, consumer telecoms and gas stations.

1960 1970 1980 1960 2000

Core Competencies

Environment friendly products

Customer focused strategyClub card - a loyalty scheme (1995)

Quality products at low price

Improved Labeling

Self-Checkout

International– No. of Countries 12– No. of Stores 440– No. of Staff 1,40,000– Turnover £7.5 Billion

UK– No. of Stores 2000– No. of Staff 270,000– Turnover £29.5 Billion

Resource Based View

Resource Based View

Store Types:ExpressMetroSuperstoreExtraTesco.com

Store Offerings:Food RetailNon-Food RetailPetrol StationsHome Living Range

Personal Finance:InsuranceSavings AccountsPersonal LoansSecure Investment BondsOnline Mortgage Finder

199419921970 19971994

Resource Based View

Tesco sells approximately 40,000 food products in its superstores, as well as clothing and other non-food lines.

The company’s own-label products are at three levels value, normal and finest. Own brand accounts for approximately 50% of sales.

Tesco does business with nearly 2,000 own-brand primary suppliers in 98 countries.

Tesco in United States

On February 9, 2006, Tesco announced that it planned to move into the United States by opening a chain of small format grocery stores on the West Coast (Arizona, California and Nevada) in 2007 named Fresh & Easy.

By January 2007, Tesco opened its U.S. headquarters in El Segundo, California.

On 21 April 2009 Tesco reported a trading loss of £142m from Fresh & Easy.

Tesco in the United States

It has plans for rapid growth and there are now 182 stores in Arizona, California, and Nevada as of October 5, 2011.

On 4 October 2010 Fresh & Easy announced that it was temporarily closing 13 stores because of shrinking populations, high percentage of housing foreclosures and high unemployment rates.

The business is not expected to break even until 2012-13

Discussion Questions 1. What are the keys to Tesco’s succes in the

competitive retailing industry?

2. In view of the tough retailing environment, what changes do you think Tesco might be forced to make to the ‘’Fresh & Easy‘’ concept?

3. Which of the market entry strategies identified in the chapter Tesco using in the United States? Do you think this is the appropriate strategy?

Thank you …