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Our core purpose is " To create value for customers to earn their life time loyalty" we deliver this thought our values--- " No one tries harder for customers" and " Treat people how we like to be treated."
Tesco Plc is one of the largest retailers in the world, operating more than 2,300 supermarkets and conveniences stores and employing 32600 people. Tesco's core business is in Britain, where the company ranks as the largest private sector employer in the United Kingdom and the largest food retailer, operating nearly 1,900 stores. In continental Europe, Tesco opertes in the Czech Republic, Hungary, Poland, the Republic of Ireland, Slovakia, and Turkey. In Asia, the company operates in Japan, Malaysia, South Korea, Taiwan and Thailand. Through Tesco.com, the company ranks as the largest online supermarket in the world. The company also offers financial services through Tesco Financial Services, which controls 4.6 million customer accounts roughly divided between credit cards and car insurance policies. Through the more than 100-unit Tesco Express chain, the company ranks as the largest seller of gasoline in the United Kingdom./p>
Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries from a stall in the East End of London. The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from T.E. Stockwell. He made new labels using the first three letters of the supplier's name (TES), and the first two letters of his surname (CO), forming the word TESCO. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, 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 in 1951 (still operational in 2008 as a Metro), and the first supermarket in Maldon 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 Williamsons stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960), 97 Charles Phillips stores (1964) and the Victor Value chain (1968) (sold to Bejam in 1986).
Over the next two decades, Tesco expanded quickly across the United Kingdom. This growth was accomplished almost exclusively by the acquisition of smaller grocery chain, including the 19 store Burnards chain in 1955, the 70 store Williamsons Ltd in 1957, the 200 branch Harrow stores Ltd, in 1959, the 07 unit Charles Phillips & Company Ltd in 1964, and the 47 stores Adsega chain in 1956. In 1956 the company opened its first supermarket in Maldon, Essex to carry fresh foods in addition to its traditional dry goods.
In 1960, Tesco established a special department in its larger stores called Home 'n' Wear to carry higher- margin, nonfood merchandise, including apparel and household items. Seven years later, the company completed construction on a 90,000 square foot warehouse in Westbury, Wiltshire. The following year, Tesco opened its first 40,000 square foot superstore at Crawley, Sussex. The term "Superstore" referred not only to the store's size but also to its vast selection of inexpensive food and nonfood items.
By 1976, Tesco operated nearly 900 supermarkets and superstores on the " pile it high, sell it cheap" formula that cohen had imported from America. The firm's management found that the efficetiveness of this strategy had deteriorated over time, however, leaving the company with uncomfortably slim margins and a erious image problem among consumers. While Tesco had been preoccupied with opening as many stores as possible and loading them with merchandise, the company had missed important signs that its market was changing and had come to value merchandise quality over quantity.
In 1992 open its first metro which made become highly successful. After the launch of metro company, introduced ' express' is the first who launch customer loyalty club card in 1995. At the start of the new millennium, Tesco founded a worldwide retail exchange. This is the year when Tesco entered in Taiwan market and open 50 new stores together at Leytonstone in London.
The year 2001 became a golden year in the history of Tesco, when group operating profit exceeding beyond £1billion for the first time. Becoming a success full retail supermarket, Tesco overtook many companies and rollout of continue replenishment in and also opened first new store in Thailand. In recent years in 2007, Tesco revealed that group sales for 13 weeks increased by 11.8% and international sales were up to 25.7% and in the total sales growing by 7.6%. In same year Tesco introduced first fresh & easy neighborhood US market and the first store located in the Los Angles and soon followed by in around the country. In 2008, Tesco entered in Indian market with aim of establishing the wholesale cash and carry business in partnership with 'Trent' the retail arm of Tata group. In current quarter, the details of its trading revealed that the sales are growing up 13.7% with petrol sales achieved total sales growth of 13.95%. Tesco is now establish as a successful retail supermarket in and all around of the world and company have 3729 total stores with 2115 stores in the only and 747 in rest of euope 814 in Asia 53 in the opening market US.
Leaders in Retail Supermarket:
Leadership is a very old concept but it's has too many followers in the world. UK is a big market for retail industry achieving more success day by day due to its truism. UK is a big trading country and there is big competition in retail sector but Tesco as one of its retail supermarkets taking position as leader due growing success has been exceptionally successful. By late 2004 it was widely regarded as a major competitive threat to traditional high street chains in many sectors, from clothing to consumer electronics to health and beauty to media products. Tesco sells an expanding range of own-brand non-food products, including non-food Value and Finest ranges. It also has done quite well in non-food sales in Ireland. CDs are one of the best examples, with Ireland promising to sell all chart CDs (except compilations) for €14.95 compared with HMV Ireland or Golden Discs selling the same for just over or under £20.
In retailing, services have taken the lead in its sector and expanding into areas like personal finance, telecoms, and utilities. It usually enters into joint ventures with major players in these sectors, contributing its customer base and brand strength to the partnership. Other supermarkets in the UK have done same thing, but has implemented them more effectively and thus made most profit.
3.3-TESCO Five Format.
Tesco's growth over the last two or three decades has involved a transformation of its strategy and image. Its initial success was based on the "Pile it high, sell it cheap" approach of the founder Jack Cohen. The disadvantage of this was that the stores had a poor image with middle-class customers. In the late 1970s's brand image was so negative that consultants advised the company to change the name of its stores. It did not accept this advice, yet by early 2005 it was the largest retailer in the United Kingdom, with a 29.0% share of plc have formed its stores in five formats.
Extra is larger main store which provide every thing which include house hold range. In there is total 166 extra shopping stores which are open twenty four hour from Monday to Saturday in week and enticing thousand of customers.
The first TESCO Extra opened in 1997, thanks to the Hypermarkets that opened in 1976. The Tesco Extra stores are standard large supermarkets, stocking groceries plus much smaller range of non food goods than Extra. They are referred to as superstores for convenience, but this word does not appear on the shops. The number of extra stores is increased by about 20 a year, mainly by conversions from the second category. The largest store by floor space is extra in Pit Sea, near Basil don with floor space. Newer Extra stores are usually on two floors, with the ground floor for mainly food and the first floor for clothing, electronics and entertainment. Most Extra stores have a café. And second category.
Superstores are standard large supermarkets, stocking groceries and a much smaller range of non-food goods than Extra stores. They are referred to as superstores for convenience, but this word does not appear on the shops. It is the standard format. Most are located in suburbs of cities or on the edges of large and medium-sized towns.
Metro stores are sized between superstores and Express stores. They are mainly located in city centres, the inner city and on the high streets of small towns. Since then all branches that have a high street format including those which opened before the Covent Garden branch have been subsequently rebranded from Extra to Metro probably to give an identity to the high street sub brand.
Express stores are neighbourhood convenience shops, stocking mainly food with an emphasis on higher-margin products due to less space because express normally open stores in corner of busy areas. They are found in busy city centre districts, small shopping precincts in residential areas, small towns and on Esso petrol station forecourts. Express stores are neighbourhood convenience shops, stocking mainly food with an emphasis on higher-margin products.
One Stop, the only category which does not include the word in its name. In May 2005, TESCO announced a non-food trial only format and the first store opened in October 2005: TESCO has operated on the internet since 1994 and was the first retailer in the world to offer a home shopping service in 1996. TESCO also has Internet operations in the Republic of Ireland and S. Korea. 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 Wait rose's home delivery service partner Ocado, this model, which is now also applied by competitor Sainsbury's, allowed rapid expansion with limited investment, but has been criticised by some customers for a high level of substitutions arising from variable stock levels in store.
TESCO home plus is a TESCO non food store those stores are located in high street and shopping centers they doing similar items to home plus stores. In UK seven home plus stores are working and those stores ranges except food in warehouse style units in retail parks. The newest Home plus store opened at Cribs Causeway, Bristol in July 2008. It was the first store to feature an order and collect desk, where you can pick up items from the TESCO Direct book there and then with no wait.
Tesco in the 21st Century:
Leahy emerged as the prominent figure guiding Tesco at the turn of the century. In 1997 the year leahy was named chief executive officer, Tesco developed a four pronged growth strategy, one that was ambitious in its design. In the coming years, the company directed its expansion efforts on its core UK business, retailing services, international operations, and nonfood business. The nonfood component of the company's growth strategy presented the most daunting challenge to Leahy because the company was essentially starting from scratch. Further, as Leahy's plans evolved, Tesco aimed to make its nonfood business as strong as its food business, which considering the massive might of its food business, called for an enormous amount of growth. Leahy, during his first years in charge, did not disappoint, as Tesco recorded remarkable success on all four of its expansion fronts.
In 2000, Tesco launched its e-commerce business, Tesco.com, one of several new business developments that propelled the company's financial growth during the early years of the 21st century. The company's grocery home-shopping service quickly developed into the largest of its kind in the world. While its retailing services segment gathered stream, Tesco turned to developing its nonfood business. The company began stocking electronic products, toys, sports equipment, cookware and home furnishings in its stores. In september 2002, the company added the cherokee clothing brand to its UK stores, giving a substantial boost to the company non-food business. On the international front, Tesco entered Thailand in 1998, South Korea in 1999, Taiwan in 2000, Malaysia in 2002, and China in 2004. The company's existing operations abroad were bolstered several acquisitions, including the 2002 purchase of HIT, a 13-store chain located in polan, the 2003 purchase of Kipa, a four-store chain in Turkey, and the 2003 acquisition of the C two Network, a Chain of 78 food stores in Japan.
While great strides were being achieved in retailing services, international operations and nonfood business, Leahy did not forget the heart of the company--- its Uk business. The company's market share in Britain increased steadily and impressively during Leahy's first decade in control. Tesco outperformed all its rivals, increasing its share of the market from 15.4 percent in 1998 to 28 percent in 2004. Highlights of the company's progress in its core business area included its rise to rank as the leading organics retailer in the UK in 2001 and the impressive strength of its brand, Value, Finest and Tesco. Perhaps the most notable achievement in the company's core business area was its January 2003 acquisition of the convenience store chain T&S stores plc, which owned 870 stores. Leahy planned to convert 450 of the units into Tesco Express stores by 2007.
As Tesco plotted further expansion in its four target areas, the company held considerably sway both in Britain and abroad. Leahy's achievements were applauded by many industry observers, who were hard pressed to find any weakness throughout the company's sprawling operations. Tesco stood as a genuine retail giant, one whose stature only promised to grow more intimidating to competitores as the decade progressed. In 2004 when one out every eight pounds spent in Britain went into Tesco's coffers, the company's expansion program represented more than half of all the new supermarket space planned for the United Kingdom.
Tesco Capital Ltd.; Tesco Insurance Ltd.; Tesco property Holdings Ltd,; Tesco Stores Hong Kong Ltd.; Tesco Stores Limited; Global TH( Hungary); savia S.A. (Poland); Tesco.com; Tesco personal Finance; Grocery Works Holdings, Inc(35%).
ASDA Group Limited; Dunnes Stores; J Sainsbury Plc.
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