Comparisons among 5 companies of retailer industry - Essay Example

It is still believed that the sector will grow by 15 percent in the next five years. By the year 2011, it is estimated that the annual sales of the industry would be around £312 billion. The sector employs around 3 million people accounting for 11 percent of the total UK workforce. At the same time, the industry contributes 8 percent to the GDP of the country. (Invest in UK, 2010) According to the TNS World Panel grocery market share report as of 29th April 2009, the big three players of the retail industry in the UK are: Tesco with 31 percent market share, ASDA with 17 percent and Sainsbury with 16 percent.

The retail industry in the UK has developed in all aspects and categories. The sector has shown tremendous growth and competition in all the allied sub-divisions: electrical, groceries, clothing and footwear, cosmetics, home-ware, floor coverings and furniture, gardening as well as e-retail. (Tesco, 2010) Tesco is a global grocery and merchandising store with headquarters based in UK. The brand is the largest grocery brand within the limits of United Kingdom with the market share of 31 percent.

Tesco is globally ranked as the third largest retailer with respect to revenues and second largest with respect to profits. The brand is now well developed with stores in 14 different countries across Europe, Asia and North America. The company appeals to all the different segments of people by providing all kinds of products from grocery to appliances, tires to gardening, clothing to cosmetics as well as furniture. Tesco has added 502 new stores globally to its portfolio in the last fiscal year.

(Tesco, 2010) Tesco sales showed an increase by 6.8 percent whereas it’s before tax-profit increased by 10 percent. The company has now transformed itself into a globally diversified business and is well positioned for consistent long term growth. (Tesco, 2010) Tesco plans to invest £27 million to reduce its carbon footprint by 2020.