Tesco
Encyclopedia
Cheshunt
Cheshunt is a town in Hertfordshire, England with a population of around 52,000 according to the United Kingdom's 2001 Census. It is a dormitory town and part of the Greater London Urban Area and London commuter belt served by Cheshunt railway station...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. It is the third-largest retailer in the world measured by revenues (after Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
and Carrefour
Carrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
) and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand.
The company was founded in 1919 by Sir Jack Cohen
Jack Cohen (Tesco)
Sir John Edward Cohen , born Jacob Edward Kohen and commonly known as Jack Cohen, was a British businessman who founded the Tesco supermarket chain.-Career:...
as a group of market stalls. The Tesco name first appeared in 1924, after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak
Burnt Oak
Burnt Oak is a suburb predominantly in the London Borough of Barnet south of Edgware, although parts of it fall within Brent and Harrow.The name Burnt Oak was first used in 1754 and from then until the 1850s referred to no more than a field on the eastern side of the Edgware Road...
, Middlesex
Middlesex
Middlesex is one of the historic counties of England and the second smallest by area. The low-lying county contained the wealthy and politically independent City of London on its southern boundary and was dominated by it from a very early time...
. The business expanded rapidly, and by 1939 there were over 100 Tesco stores across the country. Originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
; telecoms and internet services; DVD rental; and music downloads.
Tesco is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
.
20th century
The first Tesco store was opened in 1929 in Burnt Oak
Burnt Oak
Burnt Oak is a suburb predominantly in the London Borough of Barnet south of Edgware, although parts of it fall within Brent and Harrow.The name Burnt Oak was first used in 1754 and from then until the 1850s referred to no more than a field on the eastern side of the Edgware Road...
, Edgware
Edgware
Edgware is an area in London, situated north-northwest of Charing Cross. It forms part of both the London Borough of Barnet and the London Borough of Harrow. The area is identified in the London Plan as one of 35 major centres in Greater London....
, Middlesex. Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. The first self-service store opened in St Albans
St Albans
St Albans is a city in southern Hertfordshire, England, around north of central London, which forms the main urban area of the City and District of St Albans. It is a historic market town, and is now a sought-after dormitory town within the London commuter belt...
in 1956 (which remained operational until 2010, with a period as a Tesco Metro), and the first supermarket in Maldon
Maldon, Essex
Maldon is a town on the Blackwater estuary in Essex, England. It is the seat of the Maldon district and starting point of the Chelmer and Blackwater Navigation.Maldon is twinned with the Dutch town of Cuijk...
in 1956.
During the 1950s and the 1960s Tesco grew organically, and also through acquisitions, until it owned more than 800 stores. The company purchased 70 Williamson's stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960, beating Express Dairies
Express Dairies
Express Dairies is a subsidiary of Dairy Crest, specialising almost entirely in home deliveries of milk and other dairy products.-History:The company was founded by George Barham in 1864 as the Express County Milk Supply Company, named after the fact that they only used express trains to get their...
Premier Supermarkets to the deal), 97 Charles Phillips stores (1964) and the Victor Value
Victor Value
Victor Value was a London-based value supermarket group operating at the lower end of the grocery trade.Old Victor Value stores which survive can often be identified by their distinctive blue and white tiled frontage....
chain (1968) (sold to Bejam
Bejam
Bejam was a British frozen food retailer which was founded by John Apthorp in 1968, based in Stanmore. The concept of selling only frozen foods was a novel idea at the time, and Bejam grew out of Apthorp's existing family business of E. A. D. Apthorp, who were potato merchants specialising in local...
in 1986).
Originally specialising in food and drink, it has diversified into areas such as clothing, electronics, financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
, telecoms, home, health, car, dental and pet insurance, retailing and renting DVDs, CDs, music downloads, Internet services and software.
Jack Cohen's business motto was "pile it high and sell it cheap", to which he added an internal motto of "YCDBSOYA" (You Can't Do Business Sitting On Your Arse) which he used to motivate his sales force.
In May 1987 Tesco completed its hostile takeover of the Hillards
Hillards
Hillards plc was a small supermarket chain from the North of England, bought out in a hostile takeover by Tesco in 1987.-History:The company was founded by John Wesley Hillard in 1885 in the West Yorkshire town of Cleckheaton. The first shop was opened in Lion Chambers there and shortly after 1900...
chain of 40 supermarkets in the North of England for £220 million.
In 1994, the company took over the supermarket chain William Low
William Low
William Low was a chain of supermarkets based in Dundee, Scotland, until it was bought out by Tesco for £257m in 1994....
, successfully fighting off Sainsbury's for control of the Dundee
Dundee
Dundee is the fourth-largest city in Scotland and the 39th most populous settlement in the United Kingdom. It lies within the eastern central Lowlands on the north bank of the Firth of Tay, which feeds into the North Sea...
-based firm, which operated 57 stores. This paved the way for Tesco to expand its presence in Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, which was weaker than in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
. In 2006 Inverness
Inverness
Inverness is a city in the Scottish Highlands. It is the administrative centre for the Highland council area, and is regarded as the capital of the Highlands of Scotland...
was branded as "Tescotown", because well over 50p in every £1 spent on food is believed to be spent in its three Tesco stores.
Tesco introduced a loyalty card, branded 'Clubcard', in 1995 and later an Internet shopping service. As of November 2006 Tesco was the only food retailer to make online shopping profitable. In 1996 the typeface of the logo was changed to the current version with stripe reflections underneath, whilst the corporate font used for store signage was changed from the familiar "typewriter" font that had been used since the 1970s. Terry Leahy
Terry Leahy
Sir Terry Leahy is a former CEO of Tesco, the largest British supermarket chain.He lives in Cuffley, Hertfordshire, with his wife, Alison and his three children.- Early life :...
assumed the role of Chief Executive on 21 February 1997, the appointment having been announced on 21 November 1995.
On 21 March 1997 Tesco announced the purchase of the retail arm of Associated British Foods
Associated British Foods
Associated British Foods plc is a global food, ingredients and retail company headquartered in London, United Kingdom. Its ingredients division is the world's second largest producer of both sugar and baker's yeast and a major producer of other ingredients including emulsifiers, enzymes and lactose...
, which consisted of the Quinnsworth
Quinnsworth
Quinnsworth was a supermarket company in the Republic of Ireland, that was founded by the entrepreneur Pat Quinn.-History:Quinnsworth was founded by Pat Quinn in 1966 and was sold to Powers Supermarkets Limited in the 1970s. During the 1970s, the slogan used was "Let's get it all together at...
, Stewarts and Crazy Prices
Crazy Prices
Crazy Prices was a supermarket chain operating in the Republic of Ireland and Northern Ireland formerly owned by Associated British Foods...
chains in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
and Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
, plus associated businesses, for £640 million. The deal was approved by the European Commission on 6 May 1997. This acquisition gave it both a major presence in (and marked a return to) the Republic of Ireland and a larger presence in Northern Ireland than Sainsbury's, which had begun its move into Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
in 1995.
In 1997 Tesco and Esso
Esso
Esso is an international trade name for ExxonMobil and its related companies. Pronounced , it is derived from the initials of the pre-1911 Standard Oil, and as such became the focus of much litigation and regulatory restriction in the United States. In 1972, it was largely replaced in the U.S. by...
(part of Exxonmobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
) forged a business alliance that included several petrol filling stations on lease from Esso, with Tesco operating the attached stores under the Express format. In turn Esso operates the forecourts and sells their fuel via the Tesco store. 200 Tesco/Esso stores now exist across the UK.
21st century
The company was the subject of a letter bomb campaignTesco bomb campaign
The Tesco bomb campaign was an attempted extortion against British supermarket chain Tesco which started in Bournemouth, Dorset, in August 2000 and led to one of the largest and most secretive operations ever undertaken by Dorset Police...
lasting five months from August 2000 to February 2001 as a bomber calling himself "Sally" sent letter bombs to Tesco customers and demanded Clubcards modified to withdraw money from cash machines.
In July 2001 Tesco became involved in internet grocery retailing in the USA when it obtained a 35% stake in GroceryWorks. In 2002 Tesco purchased 13 HIT hypermarkets in Poland. It also made a major move into the UK convenience store market with its purchase of T & S Stores, owner of 870 convenience stores in the One Stop, Dillons and Day & Nite chains in the UK.
In October 2003 the company launched a UK telecoms division, comprising mobile and home phone services, to complement its existing Internet service provider
Internet service provider
An Internet service provider is a company that provides access to the Internet. Access ISPs directly connect customers to the Internet using copper wires, wireless or fiber-optic connections. Hosting ISPs lease server space for smaller businesses and host other people servers...
business. In June 2003 Tesco purchased the C Two-Network in Japan. It also acquired a majority stake in Turkish supermarket chain Kipa. In January 2004 Tesco acquired Adminstore, owner of 45 Cullens, Europa, and Harts convenience stores, in and around London. In August 2004, it also launched a broadband service. In Thailand Tesco Lotus was a joint venture of the Charoen Pokphand
Charoen Pokphand
The Charoen Pokphand Group is a transnational conglomerate that consists of three core businesses that operate in the agribusiness and food, retail and distribution, and the telecommunications industries with investment in 15 countries. Founded in 1921, the CP Group currently employs over 280,000...
Group and Tesco, but facing criticism over the growth of hypermarket
Hypermarket
In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise...
s CP Group sold its Tesco Lotus shares in 2003. In late 2005 Tesco acquired the 21 remaining Safeway
Safeway (UK)
Safeway was a chain of supermarkets and convenience stores in the United Kingdom. It started as a subsidiary of the American Safeway Inc., before being sold off in 1987....
/BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
stores after Morrisons
Morrisons
Wm Morrison Supermarkets plc is the fourth largest chain of supermarkets in the United Kingdom, headquartered in Bradford, West Yorkshire, England. The company is usually referred to and is branded as Morrisons formerly Morrison's, and it is part of the FTSE 100 Index of companies...
dissolved the Safeway/BP partnership. In mid 2006 Tesco purchased an 80% stake in Casino's Leader Price supermarkets in Poland. They will be rebranded into small Tesco stores. In 2003, Tesco took part in a joint venture with O2 to form the Tesco Mobile mobile virtual network operator
Mobile virtual network operator
A mobile virtual network operator is a company that provides mobile phone services but does not have its own licensed frequency allocation of radio spectrum, nor does it necessarily have all of the infrastructure required to provide mobile telephone service...
.
In 2007 Tesco was placed under investigation by the UK Office of Fair Trading
Office of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
(OFT) for acting as part of a cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
of five supermarkets (Safeway, Tesco, Asda, Morrisons and Sainsburys) and a number of dairy companies to fix the price of milk, butter and cheese. In December 2007 Asda, Sainsburys and the former Safeway admitted that they acted covertly against the interests of consumers while publicly claiming that they were supporting 5,000 farmers recovering from the foot-and-mouth crisis. They were fined a total of £116 million. Tesco, which maintains that it was not a part of the cartel, is still under investigation by the OFT.
Although profits were £1.9 billion for the first half of 2011, sales figures were the worst in 20 years due to shoppers switching to budget rivals.
Corporate strategy
According to CitigroupCitigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
retail analyst David McCarthy, "[Tesco has] pulled off a trick that I'm not aware of any other retailer achieving. That is to appeal to all segments of the market". One plank of this strategy has been Tesco's use of its own-brand products, including the upmarket "Finest", mid-range Tesco brand and low-price "Value" encompassing several product categories such as food, beverage, home, clothing, Tesco Mobile and financial services.
Beginning in 1997 when Terry Leahy took over as CEO, Tesco began marketing itself using the phrase "The Tesco Way" to describe the company's core purposes, values, principles, and goals This phrase became the standard marketing speak for Tesco as it expanded domestically and internationally under Leahy's leadership, implying a shift by the company to focus on people, both customers and employees.
A core part of the Tesco expansion strategy has been its innovative use of technology. It was one of the first to build self-service tills and use cameras to reduce queues.
To protect its brand image, and given its expansion plans in Thailand, Tesco has recently been employing a policy of launching defamation proceedings. In November 2007, Tesco sued a Thai academic and a former minister for civil libel and criminal defamation. Tesco is insisting that the two pay £1.6 million and £16.4 million plus two years' imprisonment respectively. They have been alleged to have misstated that Tesco's Thai market amounts to 37% of its global revenues, amongst criticism of Tesco's propensity to put small retailers out of business.
Tesco's main advertising slogan is "Every little helps". Its advertisements in print and on television mainly consist of product shots (or an appropriate image, such as a car when advertising petrol) against a white background, with a price or appropriate text (e.g., "Tesco Value") superimposed on a red circle. On television, voiceovers are provided by recognisable actors and presenters, such as Barbara Windsor
Barbara Windsor
Barbara Ann Windsor, MBE , better known by her stage name Barbara Windsor, is an English actress. Her best known roles are in the Carry On films and as Peggy Mitchell in the BBC soap opera EastEnders....
, James Nesbitt
James Nesbitt
James Nesbitt is a Northern Irish actor. Born in Ballymena, County Antrim, Nesbitt grew up in the nearby village of Broughshane, before moving to Coleraine, County Londonderry. He wanted to become a teacher like his father, so he began a degree in French at the University of Ulster...
, Jane Horrocks
Jane Horrocks
Barbara Jane Horrocks is an English voice, stage, screen and television actress, voice artist, musician, and singer. She is best known for her role as "Bubble" in the TV series Absolutely Fabulous as well as her distinctive voice....
, Terry Wogan
Terry Wogan
Sir Michael Terence Wogan, KBE, DL , or also known as Terry Wogan, is a veteran Irish radio and television broadcaster who holds dual Irish and British citizenship. Wogan has worked for the BBC in the United Kingdom for most of his career...
, Dawn French, Ray Winstone
Ray Winstone
Raymond Andrew "Ray" Winstone is an English film and television actor. He is mostly known for his "tough guy" roles, beginning with that of Carlin in the 1979 film Scum and as Will Scarlet in the cult television adventure series Robin of Sherwood. He has also become well known as a voice over...
, Neil Morrissey
Neil Morrissey
Neil Anthony Morrissey is an English actor, media personality and businessman. He is best known for his role as Tony in Men Behaving Badly....
, Martin Clunes
Martin Clunes
Alexander Martin Clunes is an English actor and comedian. Clunes is perhaps best known for his roles as Gary Strang in Men Behaving Badly, Doctor Martin Ellingham in Doc Martin and the title character in Reggie Perrin....
, David Jason
David Jason
Sir David John White, OBE , better known by his stage name David Jason, is an English BAFTA award-winning actor. He is best known as the main character Derek "Del Boy" Trotter on the BBC sit-com Only Fools and Horses from 1981, the voice of Mr Toad in The Wind In The Willows and as detective Jack...
, David Tennant
David Tennant
David Tennant is a Scottish actor. In addition to his work in theatre, including a widely praised Hamlet, Tennant is best known for his role as the tenth incarnation of the Doctor in Doctor Who, along with the title role in the 2005 TV serial Casanova and as Barty Crouch, Jr...
and Kathy Burke
Kathy Burke
Katherine Lucy Bridget Burke is an English actress, comedienne, playwright and theatre director. She is best known for her portrayals of Perry in the Harry Enfield film Kevin and Perry Go Large, and of Linda La Hughes in the British sitcom Gimme Gimme Gimme...
amongst others.
Corporate social responsibility
Tesco has made a commitment to corporate social responsibilityCorporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
in the form of contributions of 1.87% in 2006 of its pre-tax profits to charities/local community organisations. This compares favourably with Marks & Spencer
Marks & Spencer
Marks and Spencer plc is a British retailer headquartered in the City of Westminster, London, with over 700 stores in the United Kingdom and over 300 stores spread across more than 40 countries. It specialises in the selling of clothing and luxury food products...
's 1.51% but not well with Sainsbury's 7.02%. Will Hutton
Will Hutton
William Nicolas Hutton is an English writer, weekly columnist and former editor-in-chief for The Observer. He is currently Principal of Hertford College, Oxford and Chair of the Big Innovation Centre , an initiative from The Work Foundation , having been Chief Executive of The Work Foundation from...
, in his role as chief executive of The Work Foundation recently praised Tesco for leading the debate on corporate responsibility. However Intelligent Giving
Intelligent Giving
Intelligent Giving was a website for charity donors run by a small charity based in Bethnal Green, London. It was founded in 2005 by two former journalists, David Pitchford and Peter Heywood, and launched on 1 November 2006...
has criticised the company for directing all "staff giving" support to the company's Charity of the Year.
In 1992, Tesco started a "computers for schools scheme", offering computers in return for schools and hospitals getting vouchers from people who shopped at Tesco. Until 2004, £92 million of equipment went to these organisations. The scheme has been also implemented in Poland.
Starting during the 2005–06 football season, the company now sponsors the Tesco Cup
Tesco Cup
The Tesco Cup is an association football competition for young footballers ran in the United Kingdom and sponsored by the retail group TESCO. There are currently three separate tournaments running, a boys' Under 13, a girls' Under 14 and a girls' Under 16...
, a football competition for young players throughout the UK.
In 2009 Tesco used the phrase, “Change for Good” as advertising, which is trade marked by Unicef for charity usage but not for commercial or retail use, which prompted the agency to say, "It is the first time in Unicef’s history that a commercial entity has purposely set out to capitalise on one of our campaigns and subsequently damage an income stream which several of our programmes for children are dependent on.” They went on to call on the public “...who have children’s welfare at heart, to consider carefully who they support when making consumer choices.”
Tesco's own labels for personal care and household products are moreover cruelty free - this means, they are not tested on animals - http://www.gocrueltyfree.org
In June 2011, Tesco announced that it was working with 2degrees Network
2degrees Network
2degrees Network is the world's largest online community specializing in sustainable business, offering networking, content and intelligence to businesses globally....
to create an online hub as part of its target to reduce its supply chain carbon footprint
Carbon footprint
A carbon footprint has historically been defined as "the total set of greenhouse gas emissions caused by an organization, event, product or person.". However, calculating a carbon footprint which conforms to this definition is often impracticable due to the large amount of data required, which is...
by 30% by 2020.
In September 2011 a Greenpeace report revealed that Tesco supermarkets in China were selling vegetables that contained illegal pesticides or at levels exceeding the legal limit. A green vegetable sample from Tesco turned up methamidophos and monocrotophos, the use of which has been prohibited in China since the beginning of year 2007.
Advertising
Tesco have used many Television adverts over the years. In July 2007 a DVD containing adverts from 1977–2007 was given to all members of staff. Early advertising stressed cheap prices and how to keep "The cost of living in check." In 1977 an advert was made where a till showed the prices to many items such as "baked beans 121/2p".Tesco's most famous advert was "Checkout 82," which was made in 1982, where a till would have a receipt coming out of it with the prices on. This advert had synth pop music as the backing and people singing "Check it out, check it out".
Adverts in the late 90s had Prunella Scales
Prunella Scales
Prunella Scales CBE is an English actress, known for her role as Basil Fawlty's long-suffering wife in the British comedy Fawlty Towers and her award-nominated role as Queen Elizabeth II in the British film A Question of Attribution.-Career:Throughout her long career, Scales has usually been cast...
as Dotty Turnbull, arguing about Tesco prices. In 2003, adverts showed items and shopping trolleys talking about Tesco. Late 2000s adverts have included many celebrities and celebrity voice-overs such as The Spice Girls and the voice of actors James Nesbitt
James Nesbitt
James Nesbitt is a Northern Irish actor. Born in Ballymena, County Antrim, Nesbitt grew up in the nearby village of Broughshane, before moving to Coleraine, County Londonderry. He wanted to become a teacher like his father, so he began a degree in French at the University of Ulster...
and Jane Horrocks.
Stores
Tesco's UK stores are divided into six formats, differentiated by size and the range of products sold. These are shown below:Tesco Extra
Tesco Extra stores are larger, mainly out-of-town hypermarkets that stock nearly all of Tesco's product ranges. Exceptions include TrowbridgeTrowbridge
Trowbridge is the county town of Wiltshire, England, situated on the River Biss in the west of the county, approximately 12 miles southeast of Bath, Somerset....
, Stafford
Stafford
Stafford is the county town of Staffordshire, in the West Midlands region of England. It lies approximately north of Wolverhampton and south of Stoke-on-Trent, adjacent to the M6 motorway Junction 13 to Junction 14...
, Hexham
Hexham
Hexham is a market town and civil parish in Northumberland, England, located south of the River Tyne, and was the administrative centre for the Tynedale district from 1974 to 2009. The three major towns in Tynedale were Hexham, Prudhoe and Haltwhistle, although in terms of population, Prudhoe was...
, Kingston upon Hull
Kingston upon Hull
Kingston upon Hull , usually referred to as Hull, is a city and unitary authority area in the ceremonial county of the East Riding of Yorkshire, England. It stands on the River Hull at its junction with the Humber estuary, 25 miles inland from the North Sea. Hull has a resident population of...
, Stevenage
Stevenage
Stevenage is a town and borough in Hertfordshire, England. It is situated to the east of junctions 7 and 8 of the A1, and is between Letchworth Garden City to the north, and Welwyn Garden City to the south....
, Chesterfield
Chesterfield
Chesterfield is a market town and a borough of Derbyshire, England. It lies north of Derby, on a confluence of the rivers Rother and Hipper. Its population is 70,260 , making it Derbyshire's largest town...
, Clay Cross
Clay Cross
Clay Cross is a former mining town and civil parish in the North East Derbyshire district of Derbyshire, England, about six miles south of Chesterfield. It is directly on the A61, the former Roman road Ryknield Street...
, Alfreton
Alfreton
Alfreton is a town and civil parish in Amber Valley, Derbyshire, England, adjoining the Bolsover and North East Derbyshire districts. It was formerly a Norman Manor and later an Urban District. The population of the Alfreton Ward was 7,928 at the 2001 Census...
, Leigh
Leigh, Greater Manchester
Leigh is a town within the Metropolitan Borough of Wigan, in Greater Manchester, England. It is southeast of Wigan, and west of Manchester. Leigh is situated on low lying land to the north west of Chat Moss....
, Wigan
Wigan
Wigan is a town in Greater Manchester, England. It stands on the River Douglas, south-west of Bolton, north of Warrington and west-northwest of Manchester. Wigan is the largest settlement in the Metropolitan Borough of Wigan and is its administrative centre. The town of Wigan had a total...
, Grimsby
Grimsby
Grimsby is a seaport on the Humber Estuary in Lincolnshire, England. It has been the administrative centre of the unitary authority area of North East Lincolnshire since 1996...
, Bulwell
Bulwell
Bulwell is an English market town approximately northwest of Nottingham city centre, on the northern edge of the city. The United Kingdom Census 2001 showed there were almost 30,000 people living in the Bulwell area, accounting for over 10% of the population of the city of Nottingham.-Early...
, Galashiels
Galashiels
Galashiels is a burgh in the Scottish Borders, on the Gala Water river. The name is often shortened to "Gala" .Galashiels is a major commercial centre for the Scottish Borders...
, Slough
Slough
Slough is a borough and unitary authority within the ceremonial county of Royal Berkshire, England. The town straddles the A4 Bath Road and the Great Western Main Line, west of central London...
, Bradford
Bradford
Bradford lies at the heart of the City of Bradford, a metropolitan borough of West Yorkshire, in Northern England. It is situated in the foothills of the Pennines, west of Leeds, and northwest of Wakefield. Bradford became a municipal borough in 1847, and received its charter as a city in 1897...
, Eastbourne
Eastbourne
Eastbourne is a large town and borough in East Sussex, on the south coast of England between Brighton and Hastings. The town is situated at the eastern end of the chalk South Downs alongside the high cliff at Beachy Head...
, Yeovil
Yeovil
Yeovil is a town and civil parish in south Somerset, England. The parish had a population of 27,949 at the 2001 census, although the wider urban area had a population of 42,140...
, Cradley Heath
Cradley Heath
Cradley Heath is a town in the Black Country, located in Sandwell metropolitan borough, England. The name is usually pronounced "Craid-ley", not "Crad-ley", but in the Black Country accent, it may even sound like "Craig-ley Aith"...
, Burnley
Burnley
Burnley is a market town in the Burnley borough of Lancashire, England, with a population of around 73,500. It lies north of Manchester and east of Preston, at the confluence of the River Calder and River Brun....
, and Leyland
Leyland, Lancashire
Leyland is a town in the South Ribble borough of Lancashire, England, approximately six miles south of the city of Preston.Throughout the 20th and 21st century, the community has seen a large growth in industry, population and farming, due to the establishment of Leyland Motors, housing...
, which are in the heart of town centres. Cardiff
Cardiff
Cardiff is the capital, largest city and most populous county of Wales and the 10th largest city in the United Kingdom. The city is Wales' chief commercial centre, the base for most national cultural and sporting institutions, the Welsh national media, and the seat of the National Assembly for...
(Western Avenue) and Cardiff (Pengam Green), Warrington
Warrington
Warrington is a town, borough and unitary authority area of Cheshire, England. It stands on the banks of the River Mersey, which is tidal to the west of the weir at Howley. It lies 16 miles east of Liverpool, 19 miles west of Manchester and 8 miles south of St Helens...
and Walsall College
Walsall College
Walsall College is a further education college in Walsall, West Midlands, England.The college is the largest provider of qualifications for 14-19 year olds in the Borough of Walsall. In addition, Walsall College provides education and training for adults, delivered both at the college campuses and...
are located in inner-city locations. The first Extra opened in 1997 in Pitsea
Pitsea
Pitsea is a small town in the east of the Basildon district of south Essex, England. It comprises five sub-districts: Eversley, Northlands Park Neighbourhood , Chalvedon, Pitsea Mount and Burnt Mills. Vange is located to the west of Pitsea, Bowers Gifford and North Benfleet to the east and Nevendon...
. The 100th store opened on 29 November 2004 in Stafford. The number of these is now being increased by about 20 a year, mainly by conversions from the second category.
The largest store in England by floor space is Tesco Extra in Walkden
Walkden
Walkden is a town within the metropolitan borough of the City of Salford, in Greater Manchester, England. It is west-northwest of Salford, and west-northwest of Manchester....
, with 185500 square feet (17,233.5 m²) of floorspace. In 2011, a Tesco Extra will be constructed in St.Helens adjacent to the new St.Helens RLFC Stadium. The largest in Scotland is the Silverburn store. The largest in Wales
Wales
Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...
is at Parc Fforestfach, Swansea
Swansea
Swansea is a coastal city and county in Wales. Swansea is in the historic county boundaries of Glamorgan. Situated on the sandy South West Wales coast, the county area includes the Gower Peninsula and the Lliw uplands...
, which is 112000 square feet (10,405.1 m²) constructed in 2003. The 200th Extra store was opened in October 2010 in Bishop Auckland
Bishop Auckland
Bishop Auckland is a market town and civil parish in County Durham in north east England. It is located about northwest of Darlington and southwest of Durham at the confluence of the River Wear with its tributary the River Gaunless...
.
Other large stores include Bar Hill
Bar Hill
Bar Hill is a purpose-built village with a population of 4,000 about 4 miles northwest of Cambridge, England on the A14 road.The Prime Meridian passes just to the west of Bar Hill.-History:...
, Cleethorpes
Cleethorpes
Cleethorpes is a town and unparished area in North East Lincolnshire, England, situated on the estuary of the Humber. It has a population of 31,853 and is a seaside resort.- History :...
, Newcastle upon Tyne
Newcastle upon Tyne
Newcastle upon Tyne is a city and metropolitan borough of Tyne and Wear, in North East England. Historically a part of Northumberland, it is situated on the north bank of the River Tyne...
, Milton Keynes
Milton Keynes
Milton Keynes , sometimes abbreviated MK, is a large town in Buckinghamshire, in the south east of England, about north-west of London. It is the administrative centre of the Borough of Milton Keynes...
, Stockton-on-Tees
Stockton-on-Tees
Stockton-on-Tees is a market town in north east England. It is the major settlement in the unitary authority and borough of Stockton-on-Tees. For ceremonial purposes, the borough is split between County Durham and North Yorkshire as it also incorporates a number of smaller towns including...
and Watford
Watford
Watford is a town and borough in Hertfordshire, England, situated northwest of central London and within the bounds of the M25 motorway. The borough is separated from Greater London to the south by the urbanised parish of Watford Rural in the Three Rivers District.Watford was created as an urban...
, which are all in the 120000 square feet (11,148.4 m²) range. Newer stores are usually on two floors, with the ground floor mainly for food and the first floor for clothing, electronics and entertainment. Some stores that did not have the second floor have been converted to this format in recent years. Most Tesco Extra stores have a café and as of October 2009, all stores have a Tesco Tech Support Team.
Tesco Superstores
Tesco superstores are standard large supermarkets, stocking groceries and a much smaller range of non-food goods than Extra stores. The stores have always previously been branded as simply 'Tesco', but a new store in LiverpoolLiverpool
Liverpool is a city and metropolitan borough of Merseyside, England, along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880...
was the first to use the format brand 'Tesco Superstore' above the door.
Tesco Metro
Devizes
Devizes is a market town and civil parish in Wiltshire, England. The town is about southeast of Chippenham and about east of Trowbridge.Devizes serves as a centre for banks, solicitors and shops, with a large open market place where a market is held once a week...
was the last store to finish rebranding, in September 2006. The store had not been renovated for over 20 years.
Tesco Express
Convenience store
A convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and...
s averaging 2200 square feet (204.4 m²), stocking mainly food with an emphasis on higher-margin products (due to small store size, and the necessity to maximise revenue per square foot) alongside everyday essentials. They are found in busy city centre districts, small shopping precincts in residential areas, small towns and villages and on Esso
Esso
Esso is an international trade name for ExxonMobil and its related companies. Pronounced , it is derived from the initials of the pre-1911 Standard Oil, and as such became the focus of much litigation and regulatory restriction in the United States. In 1972, it was largely replaced in the U.S. by...
petrol station forecourts. The 1000th Tesco Express site opened in July 2009. Tesco have now started building Tesco Express stores with only 'Assisted-Service' tills, in which the customer scans all their own shopping and packs it, with the support of supervising staff when required.
One Stop
Tesco Personal Finance
Tesco Bank is the trading name of Tesco Personal Finance plc, a telephone and internet based commercial bank in the United Kingdom owned by Tesco, the UK's largest supermarket. Until 2008 it was a 50:50 joint venture between Tesco and the Royal Bank of Scotland, one of the UK's largest banks and...
branded cash machines
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
.
The business has attracted some controversy, as grocery prices in these shops, often situated in less well-off areas, can be higher than nearby Tesco branded stores, highlighted in The Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...
22 March 2010: "Britain’s biggest supermarket uses its chain of 520 One Stop convenience stores—which many customers do not realise it owns—to charge up to 14 per cent more for goods than it does in Tesco-branded stores."
Tesco responded to the article stating "It is a separate business within the Tesco Group, with its own supply chain and distribution network. One Stop stores offer a different range to Express stores and its operating costs are different. One Stop’s price strategy is to match its nearest competitor Cost Cutter and is frequently cheaper." They can usually be found in smaller communities across the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
.
Tesco Homeplus
HistoryTesco Homeplus is not Tesco's first non-food only venture in the UK. Until the late 1990s/early 2000s there were several non-food Tesco stores around the country including Scarborough and Yate. Although not in a warehouse style format, the stores were located on high streets and shopping centres, they did stock similar items to Homeplus stores. In both cases this was because another part of the shopping centre had a Tesco Superstore that stocked food items only.
In May 2005 Tesco announced a trial non-food only format near Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
and Aberdeen
Aberdeen
Aberdeen is Scotland's third most populous city, one of Scotland's 32 local government council areas and the United Kingdom's 25th most populous city, with an official population estimate of ....
, and the first store opened in October 2005:
A further five stores opened before it stopped being a trial, and there is now a plan to open many more stores.
Current
Stores offer all of Tesco's ranges except food in warehouse-style units in retail parks. Tesco is using this format because only 20% of its customers have access to a Tesco Extra, and the company is restricted in how many of its superstores it can convert into Extras and how quickly it can do so. Large units for non-food retailing are much more readily available.
There are currently 13 Homeplus stores nationwide. The newest Homeplus store opened in Chester in July 2009.
Two more were due to open in the first half of 2009 at sites around the country. All of these were to feature the Order and Collect desk where customers can purchase and collect most items straightaway.
Store facts
As of 26 February 2011, at the end of its 2010/11 financial year, Tesco's UK store portfolio was as follows.| Format | Number | Total area (m²) |
Total area (sq ft) |
Mean area (m²) |
Mean area (sq ft) |
Percentage of space |
+/- Stores 2010/11 |
|---|---|---|---|---|---|---|---|
| Tesco Extra | 212 | 1,400,885 | 15,079,000 | 6,608 | 71,127 | 41.08% | 22 |
| Tesco Superstores | 470 | 1,297,112 | 13,962,000 | 2,760 | 29,706 | 38.04% | 15 |
| Tesco Metro | 186 | 194,632 | 2,095,000 | 1,046 | 11,263 | 5.73% | 5 |
| Tesco Express | 1,285 | 272,392 | 2,932,000 | 212 | 2,282 | 7.99% | 155 |
| One Stop | 599 | 74,044 | 797,000 | 142 | 1,530 | 2.04% | 8 |
| Tesco Homeplus | 13 | 51,468 | 554,000 | 3,790 | 42,615 | 1.53% | 0 |
| Dobbies | 28 | 121,053 | 1,303,000 | 4,323 | 46,536 | 3.57% | 3 |
| Total | 2,715 | 3,411,586 | 36,722,000 | 1,257 | 13,526 | 100% | 208 |
Garden centres
Tesco announced its intention to purchase Dobbies Garden CentresDobbies Garden Centres
Dobbies Garden Centres is a British chain of garden centres, now owned by Tesco.The business was founded in 1865 by James Dobbie, who created a seeds business named Dobbie & Co...
for £155.6 million on 8 June 2007. Dobbies operates 28 garden centres, half in Scotland and half in England. The deal was confirmed as successful by the board of directors of Tesco on 17 August 2007 when the board announced that they had received 53.1% of shares (or 5,410,457 shares), which confirmed conditions set out in the offer made on 20 June 2007. Although the deal had been confirmed by Tesco the offer remained open to Dobbies shareholders until 20 August 2007. Tesco raised its holding to 65% in September and on 5 June 2008 Tesco announced that it would be compulsorily acquiring Dobbies Garden Centres plc. Dobbies continues to trade under its own brand, from its own head office in Melville, near Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
.
Banking
Tesco has a banking arm called Tesco Bank, formerly a 50:50 joint venture with the Royal Bank of ScotlandRoyal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
. Products on offer include credit cards, loans, mortgages, savings accounts and several types of insurance, including car, home, life and travel. They are promoted by leaflets in Tesco's stores and through its website. The business made a profit of £130 million for the 52 weeks to 24 February 2007, of which Tesco's share was £66 million. This move towards the financial sector diversified the Tesco brand and provides opportunities for growth outside of the retailing sector.
On 28 July 2008 Tesco announced that they were buying out the Royal Bank of Scotland's 50% stake in the company for £950 million. In October 2009 the name of Tesco Personal Finance was changed to Tesco Bank.
Technika
Technika is a brand name for Electronic products sold exclusively through Tesco Stores. The Technika range currently includes Televisions, MP3 Docking Stations, Computer Peripherals, DVD and Blu-ray Players, DAB Radios. The range is updated on a regular basis to follow market trends.The Technika brand is managed in-house by Tesco alongside its other brands, such as Tesco and Tesco Value. Customer support is offered through the Tesco Electrical Helpline or in-store through Tesco Tech Support.
Telecoms
Tesco operates mobile phone, home phone and broadband businesses. These are available to residential consumers in several countries and are sold via the Tesco website and through Tesco stores. Tesco has not purchased or built a telecoms network, but instead has pursued a strategy of pairing its marketing strength with the expertise of existing telecoms operators.Mobile
In autumn 2003, Tesco Mobile
Tesco Mobile
Tesco Mobile is a mobile virtual network operator in the United Kingdom, the Republic of Ireland and Slovakia. It is operated by Tesco, using the O2 network as its carrier.-United Kingdom:...
was launched as a joint venture with O2
O2 plc
Telefónica Europe plc is a European broadband and telecommunications company that trades as O2 . The company originated as a collection of worldwide telecommunications companies, known in the later half of the 1990s as BT Wireless, and a global mobile data business known then as Genie Internet,...
. In November 2009 Tesco announced over 2 million UK customers are using this service. A similar O2
O2 plc
Telefónica Europe plc is a European broadband and telecommunications company that trades as O2 . The company originated as a collection of worldwide telecommunications companies, known in the later half of the 1990s as BT Wireless, and a global mobile data business known then as Genie Internet,...
based service has since been launched in Ireland and Slovakia.
ISP
In August 2004 Tesco broadband, an ADSL-based service delivered via BT phone lines, was launched in partnership with NTL. In November 2009 Tesco announced a new partnership with Cable & Wireless
Cable & Wireless
Cable & Wireless Worldwide PLC is a global telecommunications company headquartered in Bracknell, United Kingdom. Cable & Wireless specialises in providing communication networks and services to large corporates, governments, carrier customers and resellers...
, and a fresh focus on this business area.
VoIP
In January 2006, Tesco Internet Phone, a Voice over Internet Protocol, VoIP, service was launched in conjunction with Freshtel of Australia. This service was shut down in 2010.
Phone Shops
In November 2009 Tesco announced it now has 100 Phone Shops embedded within larger Tesco Extra stores, and stated an intention to open up to 500 such shops across the UK in the medium term. In April 2010 the first Tesco Phone shop opened in Slovakia.
Fuel
Tesco first started selling petrol in 1974. Tesco sells 95, 97 and 99 RONOctane rating
Octane rating or octane number is a standard measure of the anti-knock properties of a motor or aviation fuel. The higher the octane number, the more compression the fuel can withstand before detonating...
(a fuel developed by Greenergy
Greenergy
Founded as a bedroom start-up in 1992, Greenergy has grown rapidly to become one of the UK’s largest road fuel suppliers, supplying about one fifth of the UK’s fuel....
of which Tesco is a shareholder) petrol on a retail basis from forecourts at most superstore and Express locations. Tesco have recently diversified into biofuels, offering petrol-bioethanol and diesel-biodiesel blends instead of pure petrol and diesel at their petrol stations, and now offering Greenergy 100% biodiesel at many stores in the southeast of the United Kingdom.
On 28 February 2007 motorists in South East England
South East England
South East England is one of the nine official regions of England, designated in 1994 and adopted for statistical purposes in 1999. It consists of Berkshire, Buckinghamshire, East Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire, Surrey and West Sussex...
reported that their cars were breaking down. This was due to petrol sold by Tesco and others being contaminated with silicon
Silicon
Silicon is a chemical element with the symbol Si and atomic number 14. A tetravalent metalloid, it is less reactive than its chemical analog carbon, the nonmetal directly above it in the periodic table, but more reactive than germanium, the metalloid directly below it in the table...
, Tesco has been criticised with claims that they had been alerted to the problem as early as 12 February 2007. On 6 March, Tesco offered to pay for any damage caused by the faulty petrol, after printing full page apologies in many national newspapers.
Tech Support
Film Making
In 2010 Tesco started funding a small film studio intended to produce Tesco exclusive direct-to- films. The first film comes out on 6 September and is called Paris Connections. It is based on a popular novel by Jackie Collins, and is an investigation thriller. Jackie Collins rewrote the novel to be more appropriate to the medium of film.Record Label
In 2010, Tesco announced that they will be forming their own record label, with notable signings since including Mick HucknallMick Hucknall
Michael "Mick" Hucknall is a British singer and songwriter. He was the lead singer of the British band Simply Red, and is recognisable for his smooth, distinctive voice and wide vocal range, as well as his red curly hair.-Early life:...
and Nadine Coyle
Nadine Coyle
Nadine Coyle is an Irish singer, songwriter, actress, and model who rose to fame in the early 2000s as a member of the band Six before becoming a member of successful girl-group Girls Aloud. The group amassed a joint fortune of £25 million by May 2009...
. Tesco records will be exclusive products to Tesco stores.
Video-on-Demand
On 20 April 2011, Tesco acquired a 80% stake in BlinkboxBlinkbox
Blinkbox is a UK-based video-on-demand website that allows users to legally preview, buy and rent over 6,000 full length premium movies and TV shows online...
from Eden Ventures and Nordic Venture Partners, it intends to use the company to boost its digital entertainment offering.
Gold Exchange
In 2011, Tesco launched Tesco Gold Exchange, which is a postal gold service, offering money for gold, as well as offering clubcard points to customers via their website.Tesco Tyres
In 2011, Tesco launched tesco-tyres.com in association with Blackcircles.comBlackcircles
Blackcircles.com is a United Kingdom online tyre retailer.It was founded by the Liverpool-born entrepreneur Mike Welch in 2002 and now has a turnover of approximately £10million. It sells to around 100,000 customers in the UK – making it one of the biggest online tyre retailers in the country...
, offering a choice of over 1,200 fitting partners across the UK as well as offering clubcard points with purchases.
Your Beauty Salon
In February 2011, Tesco launched Your Beauty Salon, in Tesco stores planning to open 70 over the next year, offering services like haircuts, leg waxing, manicures and eyebrow.Tesco Clubcard
Customers can collect one Clubcard points for every £1 (or one point for €1 in Ireland and Slovakia) they spend in a Tesco store, or Tesco.com, and 1 point per £2 on fuel (not in Slovakia). Customers can also collect points by paying with a Tesco Credit Card, or by using Tesco Mobile, Tesco Homephone, Tesco Broadband, selected Tesco Personal Finance products or through Clubcard partners, E.ONE.ON
E.ON AG, marketed with an interpunct as E•ON, is the holding company of the world's largest investor-owned energy service provider based in Düsseldorf, Germany. The name comes from the Greek word aeon which means eternity....
and Avis
Avis Rent A Car System
Avis Rent a Car System, LLC is a car rental company headquartered in Parsippany-Troy Hills Township, New Jersey, United States. Avis, Budget Rent a Car and Budget Truck Rental are all units of Avis Budget Group....
. Each point equates to 1p in store when redeemed or up to 3 times their value when used with clubcard deals (offers for holidays, day trips, etc.) Clubcard points (UK & IE) can also be converted to Airmiles.
Holders receive Clubcard statements 6 times a year, which often feature extra point coupons and money-off coupons. These can be spent in-store, online or on various Clubcard deals.
Tesco was cited in a Wall Street Journal article as using the intelligence from the Clubcard to thwart Wal-Mart's initiatives in the UK.
Internet operations
Tesco operates a grocery homeshopping service, as well as providing consumer goods, telecommunications and financial services online.In May 1984, in Gateshead
Gateshead
Gateshead is a town in Tyne and Wear, England and is the main settlement in the Metropolitan Borough of Gateshead. Historically a part of County Durham, it lies on the southern bank of the River Tyne opposite Newcastle upon Tyne and together they form the urban core of Tyneside...
, England, the world's first recorded online home shopper, Mrs Jane Snowball, purchased groceries from her local Tesco store in the world's first recorded online shopping transaction from the home.
Tesco has operated on the internet since 1994 and was the first retailer in the world to offer a robust home shopping service in 1996. Tesco.com was formally launched in 2000. It also has online operations in the Republic of Ireland and South Korea. Currently it's also considering entering Polish market. Grocery sales are available within delivery range of selected stores, goods being hand-picked within each store, in contrast to the warehouse model followed by Ocado. In 2003, tesco.com's CEO at the time, John Browett, received the Wharton Infosys Business Transformation Award for the innovative processes he used to support this online grocery service.
On 1 October 2007, Tesco announced that it will be selling six own-brand budget software packages for under £20 each, including office and security suites, in a partnership with software firm Formjet
Formjet
Formjet plc is a UK software vendor, specialising in exclusively distributing and marketing software that is alternative to the mainstream.This includes products from:-...
. As Formjet is exclusive distributor for Panda Software
Panda Software
Panda Security SL, formerly Panda Software, is a computer security company founded in 1990 by Panda's former CEO, Mikel Urizarbarrena, in the city of Bilbao, Spain...
and Ability Plus Software
Ability Plus Software
Ability Plus Software is a software development company, founded in 1991for the purposes of developing and marketing the Ability branded products:Ability Office, an office suite for Microsoft Windows and, earlier,...
, packages from these companies are likely to feature.
Tesco offers an internet-based DVD rental service, which is operated by LOVEFiLM
LoveFilm
LoveFilm is a UK-based provider of home video and video game rental through DVD-by-mail and streaming video on demand in the UK, Germany and Scandinavia...
and a music download service.
International operations
Tesco's international expansion strategy has responded to the need to be sensitive to local expectations in other countries by entering into joint ventures with local partners, such as Samsung GroupSamsung Group
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
in South Korea (Samsung-Tesco Home plus
Home plus
Home plus is a South Korean/British discount store retail chain jointly owned by Samsung and Tesco with 113 branches throughout South Korea. Tesco currently holds 94% of the shares in the venture. Home plus operates both hypermarkets and its express format as well as a home delivery shopping service...
), and Charoen Pokphand
Charoen Pokphand
The Charoen Pokphand Group is a transnational conglomerate that consists of three core businesses that operate in the agribusiness and food, retail and distribution, and the telecommunications industries with investment in 15 countries. Founded in 1921, the CP Group currently employs over 280,000...
in Thailand (Tesco Lotus
Tesco Lotus
thumb|right|200px|Tesco Lotus Hypermarket, Lat Phrao Branch]]Tesco Lotus is a hypermarket chain in Thailand, Cambodia and China . In Thailand, the stores are operated by Ek-Chai Distribution System Co., Ltd....
), appointing a very high proportion of local personnel to management positions. It also makes small acquisitions as part of its strategy for example, in its 2005/2006 financial year it made acquisitions in South Korea, one in Poland and one in Japan.
In late 2004 the amount of floorspace Tesco operated outside the United Kingdom surpassed the amount it had in its home market for the first time, although the United Kingdom still accounted for more than 75% of group revenue due to lower sales per unit area outside the UK.
In September 2005 Tesco announced that it was selling its operations in Taiwan to Carrefour and purchasing Carrefour's stores in the Czech Republic and Slovakia. Both companies stated that they were concentrating their efforts in countries where they had strong market positions.
The following table shows the number of stores, total store size in area and sales for Tesco's international operations. The store numbers and floor area figures are as at 27 February 2010. This information is taken from the .
| Country | Entered | Stores | Area (m² (sq ft)) | Mean Store Area (m² (sq ft)) | +/- Stores 2010/11 |
|---|---|---|---|---|---|
 People's Republic of China China |
2004 | 105 | 755,766 (8,135,000) | 7,198 (77,476) | 17 |
 Czech Republic Czech Republic |
1996 | 158 | 486,626 (5,238,000) | 3,080 (33,152) | 22 |
 Hungary Hungary |
1994 | 205 | 667,508 (7,185,000) | 3,256 (35,049) | 29 |
 Republic of Ireland Republic of Ireland |
1997 | 130 | 301,099 (3,241,000) | 2,316 (24,931) | 11 |
 Japan Japan |
2003 | 140 | 46,916 (505,000) | 335 (3,607) | 2 |
 Malaysia Malaysia |
2002 | 44 | 308,903 (3,325,000) | 8,129 (87,500) | 7 |
 Poland Poland |
1992 | 371 | 756,788 (8,146,000) | 2,040 (21,957) | 35 |
 Slovakia Slovakia |
1996 | 97 | 314,291 (3,383,000) | 3,240 (34,876) | 16 |
 South Korea South Korea |
1999 | 354 | 1,084,736 (11,676,000) | 3,064 (32,983) | 49 |
 Thailand Thailand |
1998 | 782 | 1,053,786 (11,342,000) | 1,348 (14,504) | 119 |
 Turkey Turkey |
2003 | 121 | 594,487 (6,399,000) | 4,913 (52,884) | 16 |
| United Kingdom (for comparison) | 1919 | 2,715 | 3,411,586 (36,722,000) | 1,257 (13,526) | 205 |
 United States United States |
2007 | 164 | 199,091 (2,143,000) | 1,214 (13,067) | 19 |
| Total (not including UK) | 2,666 | 6,569,997 (70,718,000) | Mean: 2,465 (26,536) | 336 | |
| Total (including UK) | 5,381 | 9,981,583 (107,440,000) | Mean: 1,855 (19,970) | 544 |
China
Tesco acquired a 50% stake in the Hymall chain, from Ting HsinTing Hsin
Ting Hsin International Group is a Taiwanese-owned company based in Tianjin, PR China. It is China's biggest instant noodle maker, owning the Kang Shi Fu brand also known as Masterkong or Ting Yi through its partly holds associate Tingyi Holding Corporation for 33.20% .In July 2009, it became the...
in September 2004. In December 2006 it raised its stake to 90% in a £180 million deal. Most of Tesco China's stores are based around Shanghai, but according to Tesco it plans to equip the business to expand more quickly and in different areas.
Tesco has a large store in Weifang, Shandong province.
Tesco has been increasing its own brand products into the Chinese market
Economy of the People's Republic of China
The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
as well as introducing the Tesco Express format.
Czech Republic
Tesco opened its first store in the Czech Republic in 1996 and now has over 84 stores, with further planned. Tesco opened its first stores in the Czech Republic by buying US corporation Kmart's operations in the country and converting them into Tesco stores. Tesco is also keen to expand non-food items and has already opened petrol stations and offers personal finance services in the Czech Republic. There are currently three Tesco Extra stores in the Czech Republic – one in PraguePrague
Prague is the capital and largest city of the Czech Republic. Situated in the north-west of the country on the Vltava river, the city is home to about 1.3 million people, while its metropolitan area is estimated to have a population of over 2.3 million...
and two in Plzeň.
France
Tesco owned a French food retailer called Catteau between 1992 and 1997, which operated a chain of stores in NE France under the Cedico, Hyper Cedico and Cedimarche banners. Tesco also operated a "Vin Plus" outlet in CalaisCalais
Calais is a town in Northern France in the department of Pas-de-Calais, of which it is a sub-prefecture. Although Calais is by far the largest city in Pas-de-Calais, the department's capital is its third-largest city of Arras....
, selling wine, beer and spirits, which closed on 30 August 2010.
Hungary
Tesco launched in Hungary in 1994 after purchasing a small local supermarket group trading as S-Market and based in the North West of Hungary. It opened its first hypermarket in Hungary at the Polus Centre in Budapest in 1996. Tesco operates through more than 200 stores in Hungary with further openings planned. Tesco offers its value, standard, healthy living and finest range in its stores. Tesco Hungary also offers a clothing line and personal finance services. In August 2010 opened the first Tesco Extra in BudapestBudapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...
; its name is Tesco Extra Fogarasi and it is located in Zugló, Budapest.
Republic of Ireland
Tesco operated in the Irish grocery market in the early eighties, however sold its operations there in March 1986.Tesco re-entered the Irish market in 1997 after the purchase of Power Supermarkets Ltd.
The country's newspaper of record
Newspaper of record
Newspaper of record is a term that may refer either to any publicly available newspaper that has been authorized by a government to publish public or legal notices , or any major newspaper that has a large circulation and whose editorial and news-gathering functions are considered professional and...
the Irish Times in April 2011 said that "Increasingly, Ireland is being viewed as a provincial backwater by the parent company – albeit a very profitable little backwater – and all the strategic decisions are being taken in the UK.
It now operates from 101 stores across Ireland. Like Tesco stores in the UK, these offer a home delivery shopping service available to 80% of the Irish population as well as petrol, mobile telephone, personal finance, flower delivery service and a weight-loss programme. Also available is Tesco's loyalty programme, the Clubcard.
Tesco is now the grocery market leader in the Republic of Ireland, with a reported November 2005 share of 26.3%. Tesco Ireland also claims to be the largest purchaser of Irish food with an estimated €1.5 billion annually. Tesco Ireland
Tesco Ireland
Tesco Ireland is the Irish arm of supermarket group Tesco. It was formed in Tesco plc's 1997 takeover of the Irish retailing operations of Associated British Foods, namely Powers' Supermarkets Limited and its subsidiaries, trading as Quinnsworth and Crazy Prices.Tesco operates supermarkets under...
operates a small number of Tesco Extra hypermarkets in the Republic of Ireland, with Clarehall Extra on the Malahide Road
R107 road
The R107 road is a regional road in north Dublin, Ireland which travels northwestwards from Fairview to Malahide. The official description of the R101 from the Roads Act 1993 Order 2006 reads:The road is long....
being the first to open in 2006. Tesco's largest hypermarket store in Europe, with a floorspace of 18,500 m², opened in Naas
Naas
Naas is the county town of County Kildare in Ireland. With a population of just over twenty thousand, it is also the largest town in the county. Naas is a major commuter suburb, with many people residing there and working in Dublin...
in Co Kildare in November 2010.
India
Tesco has had a limited presence in India with a service centre in BangaloreBangalore
Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...
, and outsourcing. However, in 2008 Tesco announced their intention to invest an initial £60m ($115m) to open a wholesale cash-and-carry business based in Mumbai with the assistance of the Tata Group
Tata Group
Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy,...
.
Isle of Man
Tesco opened a large purpose built store along with a car park in DouglasDouglas, Isle of Man
right|thumb|250px|Douglas Promenade, which runs nearly the entire length of beachfront in Douglasright|thumb|250px|Sea terminal in DouglasDouglas is the capital and largest town of the Isle of Man, with a population of 26,218 people . It is located at the mouth of the River Douglas, and a sweeping...
on the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
in 2002,
There were plans to rebuild the store to almost double the floor space, including a mezzanine level and to replace the open car parking area with a two storey car park, However these plans fell through in 2010. Tesco also runs a home delivery service across the island. There are currently (as of 2011) plans to open a second store in Castletown, Isle of Man.
Japan
Tesco Japan first began operations in 2003. It was brought about by a buy-out of C Two stores for £139 million in July 2003 and later Fre'c in April 2004. Tesco has adopted an approach that focuses on small corner shops that operate similarly to its Express format, rather than opening hypermarkets. It has also launched its range of software in Japan. In August 2011, Tesco announced that they would be selling off their Japanese stores after revealing that only half of the stores in the Greater Tokyo AreaGreater Tokyo Area
The Greater Tokyo Area is a large metropolitan area in Kantō region, Japan, consisting of most of the prefectures of Chiba, Kanagawa, Saitama, and Tokyo . In Japanese, it is referred to by various terms, including the , , and others....
were making a profit.
Malaysia
Puchong
Puchong is a major town in the Petaling district of Selangor, Malaysia. The town used to be a rubber estate and tin-mining town in the 1960s. During 1980s, Puchong consisted of only one two-lane road running through estates and villages...
, Selangor
Selangor
Selangor also known by its Arabic honorific, Darul Ehsan, or "Abode of Sincerity") is one of the 13 states of Malaysia. It is on the west coast of Peninsular Malaysia and is bordered by Perak to the north, Pahang to the east, Negeri Sembilan to the south and the Strait of Malacca to the west...
. Tesco Malaysia currently operates 43 Tesco and Tesco Extra stores. Selangor
Selangor
Selangor also known by its Arabic honorific, Darul Ehsan, or "Abode of Sincerity") is one of the 13 states of Malaysia. It is on the west coast of Peninsular Malaysia and is bordered by Perak to the north, Pahang to the east, Negeri Sembilan to the south and the Strait of Malacca to the west...
has 12 stores, Perak
Perak
Perak , one of the 13 states of Malaysia, is the second largest state in the Peninsular Malaysia bordering Kedah and Yala Province of Thailand to the north, Penang to the northwest, Kelantan and Pahang to the east, Selangor the Strait of Malacca to the south and west.Perak means silver in Malay...
and Johor
Johor
Johor is a Malaysian state, located in the southern portion of Peninsular Malaysia. It is one of the most developed states in Malaysia. The state capital city and royal city of Johor is Johor Bahru, formerly known as Tanjung Puteri...
six stores each, Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
and Penang
Penang
Penang is a state in Malaysia and the name of its constituent island, located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is bordered by Kedah in the north and east, and Perak in the south. Penang is the second smallest Malaysian state in area after Perlis, and the...
five stores each, Kedah
Kedah
Kedah is a state of Malaysia, located in the northwestern part of Peninsular Malaysia. The state covers a total area of over 9,000 km², and it consists of the mainland and Langkawi. The mainland has a relatively flat terrain, which is used to grow rice...
four stores, Melaka and Negeri Sembilan
Negeri Sembilan
Negeri Sembilan, one of the 13 states that constitutes Malaysia, lies on the western coast of Peninsular Malaysia, just south of Kuala Lumpur and borders Selangor on the north, Pahang in the east, and Malacca and Johor to the south....
two stores each, and Kelantan
Kelantan
Kelantan is a state of Malaysia. The capital and royal seat is Kota Bharu. The Arabic honorific of the state is Darul Naim, ....
one store. Tesco has partnered with local conglomerate Sime Darby Berhad
Sime Darby
Sime Darby is Malaysia's leading multinational conglomerate involved in five core sectors: plantations, property, industrial, motors and energy & utilities, with a growing presence in healthcare...
, which holds 30% of the shares.
Tesco also acquired the Malaysian operation of the wholesaler Makro
Makro
Makro is a Dutch chain of Warehouse clubs, also called cash and carries. The first one opened in 1968 in Amsterdam. In the following years more stores opened in the Netherlands and in several other countries within Europe. In the 1970s and 1980s Makro extended its business to the Americas and...
, which was rebranded Tesco Extra and provides products for local retailers. As of 2011, Tesco has relaunched the Tesco Extra brand in five of its stores in the Klang Valley. The new Tesco Extra brand will now offer the widest choice in the food, clothing, home and electronics ranges. A variety of complementary services such as a pharmacy, an optician and a Tesco phone shop will also be incorporated into these Tesco Extra stores.
Tesco Malaysia offers a value range, its own branded range, electronic goods, the loyalty clubcard and clothing. Tesco Malaysia's clubcard introduced Green ClubCard Points in 2007 making Tesco Malaysia the first Tesco international business to introduce the scheme (Green ClubCard Points).
Poland
Czestochowa
Częstochowa is a city in south Poland on the Warta River with 240,027 inhabitants . It has been situated in the Silesian Voivodeship since 1999, and was previously the capital of Częstochowa Voivodeship...
. Currently there are five Tesco Extra stores in Poland.
Slovakia
Tesco Slovakia opened in 1996 as part of Tesco's international expansion aims. It now operates from 97 stores and 16 service stations. Tesco Slovakia has recently put great emphasis on organic products. However, Tesco Slovakia caused controversy amongst the Slovak government when it was found to have come foul of food safety laws in 2006. In April 2010 the first Tesco Extra in Central Europe opened in BratislavaBratislava
Bratislava is the capital of Slovakia and, with a population of about 431,000, also the country's largest city. Bratislava is in southwestern Slovakia on both banks of the Danube River. Bordering Austria and Hungary, it is the only national capital that borders two independent countries.Bratislava...
– Petrzalka
Petržalka
Petržalka ) is the largest borough of Bratislava, the capital of Slovakia. Situated on the right bank of the river Danube, it is home to approximately 150,000 people.-History:Historical records of Petržalka exist from 1225...
, Slovakia as part of a pilot project for Tesco in the region, including the first self-service cash flow in Central Europe. There are currently four Tesco Extra stores in Slovakia – three in Bratislava and one in Zvolen
Zvolen
Zvolen |Slatina]] rivers, close to Banská Bystrica. With its ancient castle, the town has a historical center, which represents the seat of an okres .-History:...
.
South Korea
Tesco launched its South Korean operations in 1999 and partnered with SamsungSamsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
, currently Tesco holds 94% of the shares in the venture. It operates both hypermarkets and its express format as well as a home delivery shopping service. It is the second largest retailer in South Korea, just behind Shinsegae Group
Shinsegae
Shinsegae is a South Korean department store franchise, along with several other businesses, headquartering in Seoul, South Korea. The name of Shinsegae literally means "New World" in Korean...
.
On 14 May 2008, Tesco agreed to purchase 36 hypermarkets with a combination of food and non-food products from E-Land
E-Land
E.Land Group is a South Korean conglomerate headquartered in Chanjeon-dong Mapo-gu Seoul, Korea. It started as a 6 sqm small clothing shop on a fashion street in front of Ewha University in Sinchon in 1980. E.Land Group become a USD 7 billion group of companies, creating the phrase "Myth of 6 sqm "...
for $1.9 billion (£976 million) in its biggest single acquisition, making Tesco the second largest in the country. The majority of the E-Land stores formerly belonged to French retailer Carrefour
Carrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
before 2006 and most of the stores will be converted to Tesco Homeplus outlets. Tesco's South Korean discount store chain, Home Plus, currently has 66 outlets.
Taiwan
Tesco entered Taiwan in September 2004. In September 2005, Tesco sold its stores in Taiwan to CarrefourCarrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
.
Thailand
Charoen Pokphand
The Charoen Pokphand Group is a transnational conglomerate that consists of three core businesses that operate in the agribusiness and food, retail and distribution, and the telecommunications industries with investment in 15 countries. Founded in 1921, the CP Group currently employs over 280,000...
and named the operation Tesco Lotus. This partnership was dissolved in 2003 when Charoen Pokphand sold its shares to Tesco. Tesco Lotus sells a diverse range of products from value food products to electronics to personal finance services. The company is keen to promote its green values and has partnered with the UNEP
United Nations Environment Programme
The United Nations Environment Programme coordinates United Nations environmental activities, assisting developing countries in implementing environmentally sound policies and practices. It was founded as a result of the United Nations Conference on the Human Environment in June 1972 and has its...
. Tesco Lotus claims to serve 20 million customers every month and that 97% of its goods are sourced from Thailand.
Turkey
Tesco entered Turkey in 2003 and uses the trading name "Kipa". Tesco remains focused on building infrastructure in Turkey to complete its expansion plans and has already introduced the Tesco Express format into Turkey. There are plans to increase the rate of expansion as basic infrastructure is built. The first Tesco Extra in Turkey opened in IzmirIzmir
Izmir is a large metropolis in the western extremity of Anatolia. The metropolitan area in the entire Izmir Province had a population of 3.35 million as of 2010, making the city third most populous in Turkey...
, Turkey, Tesco Kipa Extra Balçova in September 2010.
United States of America
Tesco moved into the United States market in 2007, opening a chain of grocery convenience stores, named Fresh & Easy
Fresh & Easy
Fresh & Easy Neighborhood Market is a chain of grocery stores in the western United States, headquartered in El Segundo, California. It is a subsidiary of Tesco, the world's third largest retailer...
, on the West Coast (Arizona, California and Nevada). The company established its U.S. headquarters in El Segundo, California
El Segundo, California
El Segundo is a city in Los Angeles County, California, United States. Located on the Santa Monica Bay, it was incorporated on January 18, 1917, and is one of the Beach Cities of Los Angeles County and part of the South Bay Cities Council of Governments...
, and the first store opened in Hemet, California
Hemet, California
Hemet is a city in the San Jacinto Valley in Riverside County, California, United States. It covers a total area of , about half of the valley, which it shares with the neighboring city of San Jacinto. The population was 78,657 at the 2010 census....
in November 2007, with 100 more expected in the first year; they planned to open a new one every two-and-a-half days in the United States.
Although the planned rate of expansion was not maintained, largely because of the recession, Fresh & Easy now (August 2011) operates 182 stores in Arizona, California and Nevada.
Financial performance
Tesco is listed on the London Stock ExchangeLondon Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
under the symbol TSCO. It also has a secondary listing on the Irish Stock Exchange
Irish Stock Exchange
-History:The Irish Stock Exchange is Ireland's only stock exchange and has been in existence since 1793. It is an Irish private company limited by guarantee. It was first recognised by legislation in 1799 when the Irish Parliament passed the Stock Exchange Act...
with the name TESCO PLC.
All figures below are for the Tesco's financial years, which run for 52 or 53 week periods to late February. Up to 27 February 2007 period end the numbers include non-UK and Ireland results for the year ended on 31 December 2006 in the accounting year. The figures in the table below include 52 weeks/12 months of turnover for both sides of the business as this provides the best comparative.
| 52/3 weeks ended | Turnover (£m) | Profit before tax (£m) | Profit for year (£m) | Basic earnings per share Earnings per share Earnings per share is the amount of earnings per each outstanding share of a company's stock.In the United States, the Financial Accounting Standards Board requires companies' income statements to report EPS for each of the major categories of the income statement: continuing operations,... (p) |
|---|---|---|---|---|
| 26 February 2011 | 67,573 | 3,535 | 2,671 | 33.10 |
| 27 February 2010 | 62,537 | 3,176 | 2,336 | 31.66 |
| 28 February 2009 | 54,300 | 3,128 | 2,166 | 28.92 |
| 23 February 2008 | 47,298 | 2,803 | 2,130 | 26.95 |
| 24 February 2007 | 46,600 | 2,653 | 1,899 | 22.36 |
| 25 February 2006 | 38,300 | 2,210 | 1,576 | 19.70 |
| 26 February 2005 | 33,974 | 1,962 | 1,366 | 17.44 |
| 28 February 2004 | 30,814 | 1,600 | 1,100 | 15.05 |
| 22 February 2003 | 26,337 | 1,361 | 946 | 13.54 |
| 23 February 2002 | 23,653 | 1,201 | 830 | 12.05 |
| 24 February 2001 | 20,988 | 1,054 | 767 | 11.29 |
| 26 February 2000 | 18,796 | 933 | 674 | 10.07 |
| 27 February 1999 | 17,158 | 842 | 606 | 9.14 |
| 28 February 1998 | 16,452 | 760 | 532 | 8.12 |
As of its 2006 year end Tesco was the fourth largest retailer in the world behind Wal-Mart, Carrefour and Home Depot. Tesco moved ahead of Home Depot during 2007, following the sale of Home Depot's professional supply division and a decline in the value of the U.S. dollar against the British Pound. METRO
Metro AG
Metro AG is a diversified retail and wholesale/cash and carry group based in Düsseldorf, Germany. It has the largest market share in its home market, and is one of the most globalised retail and wholesale corporations. It is the fourth-largest retailer in the world measured by revenues . In English...
was only just behind and might move ahead again if the euro strengthens against the pound, but METRO's sales include many billions of wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
turnover, and its retail turnover is much less than Tesco's.
At 24 February 2007 Tesco operated 1,988 stores in the UK with 27700000 square feet (2,573,414.2 m²) of floorspace and 1,275 outside the UK with 4040000 square feet (375,328.3 m²) of floorspace.
Despite being in a recession, Tesco made record profits for a British retailer in the year to February 2010, during which its underlying pre-tax profits increased by 10.1% to £3.4 billion. Tesco now plans to create 16,000 new jobs, of which 9,000 will be in the UK. In 2011 the retailer reported its poorest six-monthly UK sales figures for 20 years, as a result of consumers' reduced non-food spending.
UK market share
Lidl
Lidl is a discount supermarket chain based in Germany that operates over 7,200 stores across Europe. The company's full name is Lidl Stiftung & Co. KG...
, Aldi
ALDI
ALDI Einkauf GmbH & Co. oHG, doing business as ', short for "Albrecht Discount", is a discount supermarket chain based in Germany...
and Netto
Netto (store)
Netto is a Danish discount supermarket operating in several European countries. Netto is owned by Dansk Supermarked Group, which in turn is partly owned by A.P. Møller-Mærsk Group.Netto also operates an express version of the store, known as Døgn Netto...
in the same period, collectively of 0.1%.
| Supermarket | Market Share December 2009 |
+/- from December 2008 |
|---|---|---|
| Tesco | 30.5% | 0.1% |
| Asda Asda Asda Stores Ltd is a British supermarket chain which retails food, clothing, general merchandise, toys and financial services. It also has a mobile telephone network, , Asda Mobile... |
16.9% | 0.1% |
| Sainsbury's | 16.3% | 0.2% |
| Morrisons Morrisons Wm Morrison Supermarkets plc is the fourth largest chain of supermarkets in the United Kingdom, headquartered in Bradford, West Yorkshire, England. The company is usually referred to and is branded as Morrisons formerly Morrison's, and it is part of the FTSE 100 Index of companies... |
12.3% | 0.5% |
Tesco litigation
As with any large corporation, Tesco is involved in litigation, usually from claims of personal injury from customers, claims of unfair dismissal from staff, and other commercial matters. Two notable cases were Ward v Tesco Stores LtdWard v Tesco Stores Ltd
Ward v Tesco Stores Ltd [1976] 1 WLR 810, is an English tort law case concerning the doctrine of res ipsa loquitur . It deals with the law of negligence and it set an important precedent in so called "trip and slip" cases which are a common occurrence...
, which set a precedent in so called 'trip or slip' injury claims against retailers; and Tesco Supermarkets Ltd v Nattrass
Tesco Supermarkets Ltd v Nattrass
Tesco Supermarkets v. Nattrass [1972] AC 153 is a leading decision of the House of Lords on the "directing mind" theory of corporate liability....
, which reached the House of Lords
House of Lords
The House of Lords is the upper house of the Parliament of the United Kingdom. Like the House of Commons, it meets in the Palace of Westminster....
, and became a leading case regarding the corporate liability of businesses for failures of their store managers (in a case of misleading advertising).
Criticism
Tesco have been criticised for aggressively pursuing critics of the company in Thailand. Writer and former MP Jit Siratranont is facing up to two years in jail and a £16.4 million libel damages claim for saying that Tesco was expanding aggressively at the expense of small local retailers. Tesco served him with writs for criminal defamation and civil libel.Criticism of Tesco includes allegations of stifling competition due to its undeveloped "land bank", and breaching planning laws.
In December 2006 The Grocer
The Grocer
The Grocer is a British market leading magazine devoted to grocery sales, published by William Reed Business Media. It has been published since 1862. Its readership encompasses every aspect of the industry, from directors of the large multiples to independent retailers...
magazine published a study that named Tesco as having the slowest checkouts of the six major supermarkets. Somerfield had the shortest queues with an average wait of 4 min 23 seconds. In order of least time spent at the checkout, the other major supermarkets were Waitrose, Sainsbury's, Asda, Morrisons.
The Grocer also named Asda as the cheapest UK supermarket (based on 33 items). Tesco was second and Sainsbury's and Morrisons joint third. Tesco price check tends to differ saying out of 7134 (compared to Asda) products, (Survey carried out between 9 July 2007 and 11 July 2007) Tesco is cheaper: 1835 (compared to 1251 the previous week), Tesco is more expensive: 975 (compared to 984 the previous week) and Tesco is the same price: 4324 (compared to 4996 the previous week).
In 2009, Tesco continued to advertise on Fox News's controversial Glenn Beck Show even after 60 major US companies, and a number of UK companies, pulled their advertisements. The cancellations were largely a consequence of Beck's accusation that Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
was racist and had a "deep-seated hatred for white people".
Corporate tax structure
In May 2007, it was revealed that Tesco had moved the head office of its online operations to the tax havenTax haven
A tax haven is a state or a country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance and a low corruption rate....
of Switzerland. This allows it to sell CDs, DVDs and electronic games through its web site without charging VAT
Vat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
. The operation had previously been run from the tax haven of Jersey
Jersey
Jersey, officially the Bailiwick of Jersey is a British Crown Dependency off the coast of Normandy, France. As well as the island of Jersey itself, the bailiwick includes two groups of small islands that are no longer permanently inhabited, the Minquiers and Écréhous, and the Pierres de Lecq and...
, but had been closed by authorities who feared damage to the Island's reputation.
In June 2008, the government announced that it was closing a tax loophole being used by Tesco. The scheme, identified by British magazine Private Eye
Private Eye
Private Eye is a fortnightly British satirical and current affairs magazine, edited by Ian Hislop.Since its first publication in 1961, Private Eye has been a prominent critic and lampooner of public figures and entities that it deemed guilty of any of the sins of incompetence, inefficiency,...
, utilises offshore holding companies in Luxembourg and partnership agreements to avoid a corporation tax liability of up to £50 million a year. Another scheme previously identified by Private Eye involved depositing £1 billion in a Swiss partnership, and then loaning out that money to overseas Tesco stores, so that profit can be transferred indirectly through interest payments. This scheme is still in operation and is estimated to be costing the UK exchequer up to £20 million a year in corporation tax. Tax expert Richard Murphy has provided an analysis of this avoidance structure.
Legal action against The Guardian newspaper
In February 2008 a six-month investigation by The GuardianThe Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
claimed that Tesco had developed a complex taxation structure involving offshore bank
Offshore bank
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. These advantages typically include:...
accounts in the tax haven of the Cayman Islands
Cayman Islands
The Cayman Islands is a British Overseas Territory and overseas territory of the European Union located in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica...
. Tesco was in the process of selling its UK stores, worth an estimated £6 billion, to Cayman Island-based companies set up by Tesco. These companies then lease the stores back to Tesco. At the time, The Guardian claimed that this arrangement would enable Tesco to avoid an estimated £1 billion tax on profits from the property sales, and also avoid paying tax on continuing operation of the stores, as the rate of corporation tax in the Cayman Islands is zero. Tesco defended its tax arrangements, saying it had a legal duty to its shareholders to organise its affairs in a tax-efficient manner and pointing out that the company already pays significant amounts of tax, including VAT, excise duty and fuel duty on behalf of its customers, PAYE
PAYE
Pay as you earn or PAYE refers to a system of withholding of income tax from payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as determined on tax returns. PAYE may also refer to withholding of the...
and national insurance contributions on behalf of its employees and corporation tax on its profits
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
.
Following these revelations, several MPs called for an inquiry into Tesco's tax avoidance
Tax avoidance and tax evasion
Tax noncompliance describes a range of activities that are unfavorable to a state's tax system. These include tax avoidance, which refers to reducing taxes by legal means, and tax evasion which refers to the criminal non-payment of tax liabilities....
schemes.
Tesco issued a writ
Writ
In common law, a writ is a formal written order issued by a body with administrative or judicial jurisdiction; in modern usage, this body is generally a court...
for libel against The Guardian five weeks later. Tesco denied that it had avoided paying £1 billion corporation tax but for legal reasons refused to answer further questions or to clarify the purpose of the tax structure they had created. Further investigations by The Guardian discovered that the tax structures were aimed at avoiding Stamp Duty Land Tax, and not corporation tax as originally thought. SDLT is levelled at 4%, and corporate tax at around 30%, so the figure of £1 billion tax avoided by Tesco has been revised to an estimated £90–£100 million. According to the Guardian, "Tesco has been involved in a game of cat and mouse with HM Revenue & Customs since 2003. On three occasions when the government has closed a loophole to prevent avoidance, Tesco has taken advantage of ingenious schemes to get around it. Tesco still has 36 stores wrapped up in UK limited partnerships—with Cayman Islands registered partners—which were established in 2006 before the latest loophole was closed."
In September 2008, Tesco dropped the legal action after The Guardian apologised for its story, acknowledging "These damaging allegations were unfounded and should not have been published. All profits generated by this sale and leaseback arrangement were earned by UK tax-resident companies and have been or will be included in Tesco's UK tax returns. The use of Cayman Island companies in the scheme was for legitimate stamp duty savings purposes." Costs were paid by the newspaper with undisclosed damages being paid to charity.
The Guardians parent company, Guardian Media Group
Guardian Media Group
Guardian Media Group plc is a company of the United Kingdom owning various mass media operations including The Guardian and The Observer. The Group is owned by the Scott Trust. It was founded as the Manchester Guardian Ltd in 1907 when C. P. Scott bought the Manchester Guardian from the estate of...
, used a similar offshore arrangement to avoid tax during its takeover of Emap
EMAP
Emap Limited is a British media company, specialising in the production of business-to-business magazines, and the organisation of business events and conferences...
.
Opposition to expansion
Tesco's expansion has not been without criticism and, in some cases, active opposition.- A 2006 article on the thisismoney website quoted various criticisms of the company's expansion and dominance of the UK supermarket scene.
- In 2007 residents in the Hall GreenHall GreenNot to be confused with Hall Green, Wolverhampton or Hall Green, SandwellHall Green is an area and ward in south Birmingham, England. It is also a council constituency, managed by its own district committee...
area of BirminghamBirminghamBirmingham is a city and metropolitan borough in the West Midlands of England. It is the most populous British city outside the capital London, with a population of 1,036,900 , and lies at the heart of the West Midlands conurbation, the second most populous urban area in the United Kingdom with a...
made their opposition strongly evident when Tesco announced plans to open a store on the Robin Hood Lane, right next to a busy island in the suburb. The Local Liberal Democrat councillor actively opposed the store on the grounds that it would affect local businesses and consumer choice. Tesco received planning permission to open the store in April 2008 and residents made plans to boycott the store and continue to use local outlets. Since opening Tesco's deliveries have caused major traffic problems in the area and Birmingham City CouncilBirmingham City CouncilThe Birmingham City Council is the body responsible for the governance of the City of Birmingham in England, which has been a metropolitan district since 1974. It is the most populated local authority in the United Kingdom with, following a reorganisation of boundaries in June 2004, 120 Birmingham...
have announced plans to put a loading ban into force between 7:00 am and 10:00 am to relieve congestion. - In 2008, opposition to a proposed expansion in CoventryCoventryCoventry is a city and metropolitan borough in the county of West Midlands in England. Coventry is the 9th largest city in England and the 11th largest in the United Kingdom. It is also the second largest city in the English Midlands, after Birmingham, with a population of 300,848, although...
was reported in the Coventry Telegraph. - In 2007 residents of CambridgeCambridgeThe city of Cambridge is a university town and the administrative centre of the county of Cambridgeshire, England. It lies in East Anglia about north of London. Cambridge is at the heart of the high-technology centre known as Silicon Fen – a play on Silicon Valley and the fens surrounding the...
organised a campaign, "No Mill Road Tesco" that aimed to prevent Tesco from opening a store on Cambridge's Mill RoadMill Road, CambridgeMill Road is a street in southeast Cambridge, England. It runs southeast from near to Parker's Piece, at the junction with Gonville Place, East Road, and Parkside. It crosses the main railway line and links to the city's ring road . It passes through the wards of Petersfield and Romsey, which are...
. This street runs just to the south of the centre of Cambridge which is a lively, cosmopolitan area home to many independent shops, delicatessenDelicatessenDelicatessen is a term meaning "delicacies" or "fine foods". The word entered English via German,with the old German spelling , plural of Delikatesse "delicacy", ultimately from Latin delicatus....
s, cafes, and curry houseCurry houseA curry house is a typical Indian restaurant or takeaway which is abound particularly in the UK, Australasia, and Europe. The term is not as widely used in the U.S. and Canada.-Background:...
s. In March 2008, Tesco's application was refused by the council. Tesco appealed, but lost the appeal in November 2008. The planning inspector dismissed the appeal on the grounds of highway safety. In mid-2008, while waiting for the appeal to be heard, Tesco applied for planning permission for an air conditioning and refrigeration plant, which was also rejected by the council. Tesco eventually opened a restricted size store with no external refrigeration plant or alcohol license in August 2009. - In March 2007 residents in BournvilleBournvilleBournville is a model village on the south side of Birmingham, England, best known for its connections with the Cadbury family and chocolate – including a dark chocolate bar branded "Bournville". It is also a ward within the council constituency of Selly Oak and home to the Bournville Centre...
, Birmingham fought to maintain the historic alcohol free status of the area, in winning a court battle with Tesco, to prevent it selling alcohol in its local outlet. No shops are permitted to sell alcohol in the area and there are no pubs, bars or fast-food outlets in BournvilleBournvilleBournville is a model village on the south side of Birmingham, England, best known for its connections with the Cadbury family and chocolate – including a dark chocolate bar branded "Bournville". It is also a ward within the council constituency of Selly Oak and home to the Bournville Centre...
. - Plans for a large Tesco store in St AlbansSt AlbansSt Albans is a city in southern Hertfordshire, England, around north of central London, which forms the main urban area of the City and District of St Albans. It is a historic market town, and is now a sought-after dormitory town within the London commuter belt...
, Hertfordshire, attracted widespread local opposition. This led to the formation of the "Stop St Albans Tesco Group". In June 2008, St Albans Council refused planning permission for the proposed store. - In 2008, Tesco faced opposition to plans to build a new store in Tonypandy, South Wales. Local business protested against the plans and Tesco was later refused planning permission by the local council. Tesco later said they would appeal to the Welsh assembly, However the result of this has not emerged.
- In 2009, Tesco received planning permission to build a Tesco Express store on Hope StreetHope Street, LiverpoolHope Street, Liverpool, England stretches from Liverpool Metropolitan Cathedral past Liverpool Cathedral to Upper Parliament Street. It contains several restaurants, hotels and bars. The road runs parallel to Rodney Street...
, Liverpool despite there being a total of eight other Tesco stores (In Express, Metro and Superstore formats) within less than or equivalent to a mile from its proposed location. This initiated a campaign in the local area and a large Facebook group movement to prevent the construction going ahead. Tesco withdrew the plans on 3 September 2009 due to widespread opposition and condemnation from local people. - In April 2011, longstanding opposition to a Tesco Express store in Cheltenham Road, Stokes CroftStokes CroftStokes Croft is the name of a road and an area in Bristol, England. The road forms part of the A38 that leads north from the city centre, before it takes the names Cheltenham Road and then Gloucester Road...
, Bristol, evolved into a violent clash between opponents and police. The recently-opened storefront was heavily damaged, and police reported the seizure of petrol bombsMolotov cocktailThe Molotov cocktail, also known as the petrol bomb, gasoline bomb, Molotov bomb, fire bottle, fire bomb, or simply Molotov, is a generic name used for a variety of improvised incendiary weapons...
. Opponents have suggested that the store would damage small shops and harm the character of the area. - Sheringham in Norfolk, has been fighting Tesco for over 13 years. Since 1997 Tesco have had four planning permissions rejected and an appeal thrown out by the planning inspector and by members of the public.
Alumni
In recent years Tesco alumni have had increasing influence on other large listed businesses. Former Tesco senior staffers include:- CEO Talk Talk plc : Dido Harding
- CEO Halfords plc : David Wild
- CEO Figleaves.com : Julia Reynolds
- CEO Dixons plc : John Browett
- Deputy Chair Carphone Warehouse: John Gildersleeve
- CEO Carrefour France : James McCann
- CEO Greggs plc : Ken McMeikan
- CEO Domino's Pizza UK & IRLDomino's Pizza UK & IRLDomino's Pizza UK & IRL plc is a United Kingdom-based franchisee of international fast food pizza delivery chain Domino's Pizza. Through its subsidiary Domino's Pizza Group, the company holds the exclusive right to own, operate and in turn franchise branches of the chain in the United Kingdom and...
: Lance BatchelorLance BatchelorLance Batchelor is the CEO designate of Domino's Pizza UK & IRL. In January 2011 He was appointed a Trustee of The National Gallery by David Cameron, the UK Prime Minister...
Gallery
File:Tesco, Burscough.JPG|Tesco in Burscough
Burscough
Burscough is a village and civil parish within West Lancashire in North West England, to the north of both Ormskirk and Skelmersdale.-Growth:...
, Lancashire
File:Baldock Tesco.jpg|Tesco in Baldock
Baldock
Baldock is a historic market town in the local government district of North Hertfordshire in the ceremonial county of Hertfordshire, England where the River Ivel rises. It lies north of London, southeast of Bedford, and north northwest of the county town of Hertford...
, Hertfordshire
File:Tesco's Superstore, Swindon - geograph.org.uk - 118815.jpg|Tesco in Swindon
Swindon
Swindon is a large town within the borough of Swindon and ceremonial county of Wiltshire, in South West England. It is midway between Bristol, west and Reading, east. London is east...
, Wiltshire
File:Praha, Národní třída, Tesco.jpg|Tesco Store at Národní Třída metro station, Prague
Prague
Prague is the capital and largest city of the Czech Republic. Situated in the north-west of the country on the Vltava river, the city is home to about 1.3 million people, while its metropolitan area is estimated to have a population of over 2.3 million...
File:Tesco headquarters Czech.jpg|Czech Tesco HQ, Prague
File:Tesco in Brno.jpg|Tesco Brno
Brno
Brno by population and area is the second largest city in the Czech Republic, the largest Moravian city, and the historical capital city of the Margraviate of Moravia. Brno is the administrative centre of the South Moravian Region where it forms a separate district Brno-City District...
File:Tesco Mikulov.jpg|Tesco Mikulov
Mikulov
Mikulov is a town in the South Moravian Region of the Czech Republic with a population of 7,608 . It is located directly on the border with Lower Austria. Mikulov is located at the edge of a hilly area and the three Nové Mlýny reservoirs...
, Czech Republic
File:Tesco Express - geograph.org.uk - 230620.jpg|Tesco Express near, Locks Heath
Locks Heath
Locks Heath is a western residential suburb of Fareham, in the south of Hampshire, England. It lies to the southeast of Sarisbury east of Warsash, to the west of Titchfield, and to the south of Park Gate and Swanwick...
, Hampshire File:TescoexpressArsenal.jpg|Tesco Express near Emirates Stadium
Emirates Stadium
Ashburton Grove, currently known as the Emirates Stadium, is a UEFA elite football stadium which is home to Arsenal FC, where they moved from Highbury in 2006. It has an current capacity of 60,361, and there have been rumours of an expansion...
File:Northallerton Tesco.JPG|Tesco Store in Northallerton
Northallerton
Northallerton is an affluent market town and civil parish in the Hambleton district of North Yorkshire, England. It lies in the Vale of Mowbray and at the northern end of the Vale of York. It has a population of 15,741 according to the 2001 census...
, North Yorkshire
File:Tesco Zličín.jpg|Tesco Hypermarket in Zličín
Zličín
Zličín is a district and cadastral area in the west of Prague, located in an administrative district of the same name, which is part of Prague 5 in the old system and governs the cadastral areas Zličín, Sobín and the northern part of Třebonice...
, Czech Republic
File:Tesco Metro Oxford.jpg|Tesco Metro in Oxford
Oxford
The city of Oxford is the county town of Oxfordshire, England. The city, made prominent by its medieval university, has a population of just under 165,000, with 153,900 living within the district boundary. It lies about 50 miles north-west of London. The rivers Cherwell and Thames run through...
See also
- List of supermarket chains in the United Kingdom
- TescopolyTescopolyTescopoly is a campaign run by United Kingdom anti-poverty and environmental campaign groups, aimed at highlighting environmental and social impacts attributed to British supermarket chains...
- TNS Worldpanel
- Tesco TownTesco TownTesco Town is British slang for an area where there is a dominant supermarket arguably stifling other competitors in the area.The term Tesco Town comes from the name of the retailer Tesco, but is used to describe any area dominated by one particular retailer....
Other
- Tescopoly.org, Coalition of campaign groups criticising Tesco.