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UK Retail - Case Study Example

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According to the United Nations Conference on Trade and Development (UNCTAD) (2004), the retail and consumer industry is one of the industries exhibiting one of the highest growths today. Though the UNCTAD subsequently report reduced the expected growth rate projections in 2005, the industry remains to be an attractive industry…
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UK Retail
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Download file to see previous pages Appendix A illustrates the state of the international retail industry:
Tesco's international expansion programs is not limited by its consumer businesses, they are aiming to launch extensive services and related markets into new markets because of two major motivations: establishing their leadership in these developing markets and maximizing existing capacities (Corporate Watch UK, 2004).
Tesco, is a global leader in retailing that is based in Britain. Recent vertical and horizontal expansion of the company have now included in its portfolio agriculture, packing, merchandising and information technology (Tesco, 2006a).
Next to only to Carrefour, it Europe's supermarket industry and is ranked eight in the global industry. Aside from its supermarket operations to has recently its retail interest expanded its retail interest to the convenience store industry. Among its outlets are Tesco Extra, Tesco superstores, Tesco Metro, Tesco Express and T&S (Corporate Watch UK, 2004). ...
Table 1 details existing stores and projected openings for 2006-2007. It also is aiming to strengthen its market presence in the countries it is already in by increasing the number of stores in operation as well as increasing the volume of its products in the market (Johansson, 2001).
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Tesco's overseas expansion is one of the major factors that have led to present growth trends. It has maintained its strategy of buying existing grocery chains instead of starting from scratch in new markets. This has allowed them to secure key locations and ease to the new market more easily (Corporate Watch UK, 2004). From current targets of Tesco, it expects to have to increase its stores by 26%, increasing its total number of stores to around 3,700 stores.
Size and Formats
Size of Stores is defined by the store format. The different categories of the store is part of the effort to capture various market segments and they may be located near each other and be considered as indirect competition of other category stores. Table 2 details the different store format and their respective sizing and selling areas.
Tesco Extra stores first opened to the public in 1997 and carry the full range of products found in all Tesco stores. They are classified as hypermarkets. The first floor carries food products while the second floor caries non-food items. They are comparative in size and format with Wal-Mart Supercenters. An average of twenty Tesco Extra stores are opened annually (Tesco, 2006d). Tesco stores follow the traditional size and format of supermarkets and are the oldest format used by the company. It also the usual type of store opened overseas (Tesco, 2006a). Tesco Metro stores are less than ...Download file to see next pagesRead More
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