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International Activity of TESCO - Case Study Example

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TESCO has its core business located with in the UK.It employs well over 250,000 employees spread over its 1,779 stores. Approximately 80% of group sales and profits are derived from the UK business. Main factors responsible for business growth in the UK business are comprised of new space, extensions to existing stores and a multi-format approach…
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International Activity of TESCO
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"International Activity of TESCO"

Download file to see previous pages TESCO opened their first Express store in 1994 and now they have over 500 stores selling a range of up to 7,000 lines including fresh produce, wines and spirits and in-store bakery. .(Tesco Core,2005)
Metro (approx. 7,000-15,000 sq ft) TESCO opened their first Metro in 1992,bringing the convenience of TESCO to town and city centre locations. Metros cater for thousands of busy customers each week and offer a tailored range of food lines, including ready-meals and sandwiches. .(Tesco Core,2005)
Superstore (approx. 20,000-50,000 sq ft) Tesco began opening superstores in the 1970s and during the 1980s and 1990s built a national network, to which additional are being made every year. They have an ongoing programme of extending and refreshing their superstores to improve the overall experience for customers. In recent years they have introduced a number of new non-food ranges into superstores such as DVDs and books. .(Tesco Core,2005)
Extra (approx. 60,000 sq ft and above) Since opening their first Extra in 1997,the one-stop destination store has proved extremely popular. Extra stores offer the widest range of food and non-food lines, ranging from electrical equipment to homewares, clothing, health and beauty and seasonal items such as garden furniture. The 100th Extra was opened in 2004 and around twenty new Extras open each year, many from extending existing superstores.(Tesco Core,2005)
The TESCO strategy aims for equivalent strength in non-food segment as in its food segment. This has meant that TESCO has been making efforts to offer the same great quality, range, price and service for our customers as they do in our food business.
TESCO's widest range of non-food can be seen in Extra stores, including electricals, home entertainment, clothing, health and beauty, stationery, cook shop and soft furnishings, and seasonal goods such as barbecues and garden furniture in the summer. Some of TESCO stores also have opticians and nearly 200 have pharmacies. TESCO's current market share of the nonfood sector is less than 7% and it generates sales in non-food in excess of 6 billion each year in the UK alone. The UK's like-for-like non-food sales growth is currently running at around twice the rate of food. All TESCO stores sell some non-food, with their Superstore and Extra formats offering the biggest choice. By introducing these ranges to more of their ...Download file to see next pagesRead More
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