Tesco case study

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What is TESCO?

• Tesco is Britain’s leading food retailer and the third largest in the world;

• The first store was opened in 1929 in London;

• Tesco plc are the one of the world‘s leading multinational retailer.

How it started?• After the World War I, Jack

Cohen bought paste and golden syrup from British Royal Flying Corps, besides he opened a small grocery stall in the East End of London, which he called

it TESCO;

• The name Tesco is derived from TES (from TE Stockwell, a tea supplier Jack Cohen used) and CO (Cohen).

History

• By the 1960s, the company had established its self-service model and had developed a reputation as a value for money retailer;

• Their motto: “pile it high and sell it cheap”;

• Tesco launched Clubcard, the loyalty programme in1995;

• By 1995, Tesco had become the number one UK supermarket.

Diversification of products• Tesco became multi-format

operator in UK by the mid-2000s;

• Have 72 % of the UK stores;

• They diversified into non-food products and retail services (personal finance, telecoms, online shopping channels).

International expansion

Market in Europe

• Hungary; Poland; Czech Republic; Slovakia; Ireland; Turkey.

• 1 507 stores;

• Revenue in Europe: £9.3bn.

Dates of TESCO site, 2012

Market in Asia

• Thailand; S. Korea; Taiwan; Malaysia; Japan; China; India;

• Stores: 2 131;

• Revenue in Asia: £11.5bn;

• Exit the market: Taiwan.

Dates of TESCO site, 2012

Success in Thailand• Enter to the market in

1998;• The stores name : “Tesco

Lotus“;• Company invested into

organic expansion and developed store programmes of considerable flexibility.

Success in South Korea• Enter to the market in 1999;

• The stores name : “Tesco Home plus“;

• They were partnered with company “Samsung“;

• They operate these hypermarkets;

• It is the second largest retailer in South Korea.

Failure in Taiwan

• Enter to the market in 2000;

• Exit the market in 2005;

• Developed just 6 stores;

• Problem: major multinational retail competitor – Carrefour.

Market in USA

• Enter the market in 2006 in Los Angeles;

• New name: “Fresh and Easy Neighborhood Market“;

• They operated 182 stores.