Tesco PLC

Type	Public
Founded	1924
Location	Cheshunt Hertfordshire
Key people	Terry Leahy (CEO)
Industry	Retail (Grocery)
Products	Grocery, general merchandise, financial services, telecoms
Revenue	£33.974 billion GBP (2005)
Operating income	{{{operating_income}}}
Net income	{{{net_income}}}
Employees	240,000
Website	www.tesco.com
{{{footnotes}}}

This article refers to Tesco PLC - the international retailer headquartered in the UK, see also Tesco (Disambiguation).

Tesco PLC (LSE: TSCO) is a United Kingdom-based international supermarket chain. It is the largest British retailer, both by global sales and by domestic market share. Originally specialising in food, it has moved into areas such as clothes, consumer electronics, consumer financial services, internet service and consumer telecoms. In the year ended 26 February 2005 Tesco made a pre-tax profit of £1.962 billion on turnover of £33.974 billion (the widely publicised headline profit of "over £2 billion" was "underlying profit" before certain accounting adjustments). TESCO logo Image scanned using Adobe photoshop from Tesco promotional material Tesco and the Tesco logo are registered trademarks of Tesco plc. ... A public company is a company owned by the public. ... Chestnunt is a town in the Broxbourne district of Hertfordshire in the East of England with a population of around 50,000 according to the UKs 2001 Census [1]. It is a dormitory town and part of the London commuter belt served by Cheshunt railway station. ... Hertfordshire (pronounced Hartfordshire and abbreviated as Herts) is an inland county in the United Kingdom, officially part of the East of England Government region. ... Sir Terry Leahy (born 28th February 1956) is the CEO of Tesco, the largest British supermarket chain. ... Chief Executive Officer (CEO) is the job of having the ultimate executive responsibility or authority within an organization or corporation. ... Exterior appearance of typical American supermarket (a Safeway) Supermarket produce section A supermarket or grocery store is a store that sells a wide variety of food. ... In business, revenue is the amount of money that a company actually receives from its activities, mostly from sales of products and/or services to customers. ... The pound sterling is the official currency of the United Kingdom (UK). ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ... EBIT stands for Earnings before Interest and Taxes (operating income). ... Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ... Employment is a contract between two parties, one being the employer and the other being the employee. ... The front page of the English Wikipedia Website. ... Tesco may refer to: Tesco PLC, the international retailer headquartered in the United Kingdom Tesco Corporation, the international drilling company headquartered in Canada This is a disambiguation page, a list of pages that otherwise might share the same title. ... The initials plc after a UK or Irish company name indicate that it is a public limited company, a type of limited company whose shares may be offered for sale to the public. ... The Source by Greyworld, in the new LSE building The London Stock Exchange (abbreviated LSE) is a stock exchange located in London. ... Exterior appearance of typical American supermarket (a Safeway) Supermarket produce section A supermarket or grocery store is a store that sells a wide variety of food. ... In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called store. ... (See also List of types of clothing) Introduction Humans often wear articles of clothing (also known as dress, garments or attire) on the body (for the alternative, see nudity). ... Consumer electronics is electronic equipment intended for use by everyday people. ... Financial services is the largest industry (or category of industries) in the world in terms of earnings (20% of market cap in the S&P 500 in 2004). ... Telecommunication is the extension of communication over a distance. ... February 26 is the 57th day of the year in the Gregorian Calendar. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ...

According to TNS Superpanel Tesco's share of the UK grocery market in the 12 weeks to 4 December 2005 was 30.6%. Across all categories, over £1 in every £8 of UK retail sales is spent at Tesco. Tesco also operates overseas, and non-UK sales for the year to 26 February 2005 were 20% of total sales. TNS Superpanel is a division of the United Kingdom based global market information group Taylor Nelson Sofres, which analyses the British grocery sector. ... February 26 is the 57th day of the year in the Gregorian Calendar. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ...

History

The first self service Tesco, which is in St Albans

Tesco was founded by Jack Cohen, who sold groceries in the markets of the London East End from 1919. The Tesco brand first appeared in 1924. After Jack Cohen bought a large shipment of tea from T.E. Stockwell, he made new labels by using the first three letters of the supplier's name and the first two letters of his surname forming the word "TESCO". This information was verified by the TESCO press relations on BBC Radio in the South on December 10th. In the late 1990s, the typeface of the logo was changed to the current one shown on the top of the page with stripe reflections underneath the typefaces as Tesco used them on their carrier bags. Image File history File linksMetadata Download high resolution version (2272x1704, 1747 KB) Description: Tesco in St Peters Street, St Albans. ... Image File history File linksMetadata Download high resolution version (2272x1704, 1747 KB) Description: Tesco in St Peters Street, St Albans. ... Sir John Cohen, commonly known as Jack Cohen (1898-1979) was a British businessman who founded the Tesco supermarket chain. ... The term East End is most commonly used to refer to the East End of London, England. ... 1919 (MCMXIX) was a common year starting on Wednesday (see link for calendar). ... 1924 (MCMXXIV) was a leap year starting on Tuesday (link will take you to calendar). ... Tea leaves in a teacup. ...

The first Tesco store was opened in 1929 in Burnt Oak, Edgware, London. The firm was floated on the London Stock Exchange in 1947. The first Tesco self-service store opened in 1948 in St Albans and is still trading in 2005. The first Tesco supermarket was opened in 1956 in a converted cinema in Maldon, Essex.-1... Burnt Oak is a place in the London Borough of Barnet near Edgware. ... Edgware is a place in the London Borough of Barnet. ... Part of the London skyline viewed from the South Bank London is the most populous city in the European Union, with an estimated population on 1 January 2005 of 7. ... The Source by Greyworld, in the new LSE building The London Stock Exchange (abbreviated LSE) is a stock exchange located in London. ... 1947 (MCMXLVII) was a common year starting on Wednesday (link will take you to calendar). ... 1948 (MCMXLVIII) is a leap year starting on Thursday (link will take you to calendar). ... St Albans (thus spelt, no apostrophe or dot) is the main urban area of the City and District of St Albans in southern Hertfordshire, England, around 22 miles (35. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ... 1956 (MCMLVI) was a leap year starting on Sunday of the Gregorian calendar. ... Maldon is a town on the Blackwater estuary in Essex, England. ... This article is about the county of Essex in England. ...

It has been said that it began own-label canning at the former Goldhanger Fruit Farms factory, sited a few miles from Maldon in the village of Tolleshunt Major, despite Goldhanger being another nearby village. The factory has since been sold. It is now a transport depot, with several other business units on the site.

Tesco's first "superstore" was opened in 1968 in Crawley, West Sussex. It began selling petrol in 1974 and its annual turnover reached one billion pounds in 1979. It introduced a loyalty card branded 'Clubcard' in 1995 and later an Internet shopping service. During the 1990s it expanded into Central Europe, Ireland and East Asia. In July 2001 it became involved in internet grocery retailing in the USA when it obtained a 35% stake in GroceryWorks. In October 2003 it launched a UK telecoms division, comprising of mobile and home phone services, to complement its existing internet service provider business. In August 2004, it also launched a broadband service. 1968 (MCMLXVIII) was a leap year starting on Monday (the link is to a full 1968 calendar). ... Map sources for Crawley at grid reference TQ2736 Crawley is a town and local government district in West Sussex, England. ... West Sussex is a county in the south of England, bordering onto East Sussex (with Brighton and Hove), Hampshire and Surrey. ... Gasoline, as it is known in North America, or petrol, in many Commonwealth countries (sometimes also called motor spirit) is a petroleum-derived liquid mixture consisting primarily of hydrocarbons, used as fuel in internal combustion engines. ... 1974 (MCMLXXIV) is a common year starting on Tuesday (click on link for calendar). ... This page refers to the year 1979. ... In marketing generally and in retailing more specifically, a loyalty card, rewards card, points card, or club card is a plastic card, visually similar to a credit card or debit card, that identifies the card holder as a member in a commercial incentives programme. ... 1995 (MCMXCV) was a common year starting on Sunday of the Gregorian calendar. ... This article is about the year. ... Historical lands and provinces in Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. ... Geographic scope of East Asia East Asia is a subregion of Asia that can be defined in either geographical or cultural terms. ... 2001: A Space Odyssey. ... 2003 (MMIII) is a common year starting on Wednesday of the Gregorian calendar. ... Telecommunication is the extension of communication over a distance. ... An Internet service provider (ISP, also called Internet access provider) is a business or organization that offers users access to the Internet and related services. ... 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... Broadband in general refers to data transmission where multiple pieces of data are sent simultaneously to increase the effective rate of transmission. ...

In addition to opening its own stores, Tesco has expanded by taking over other chains, including:

• Victor Value, England, 1968 (sold again in 1986)
• William Low, Scotland, 1994
• Quinnsworth, Stewarts and Crazy Prices stores, Republic of Ireland and Northern Ireland from Associated British Foods, 1997
• 13 HIT hypermarkets in Poland, 2002
• T & S Stores, owner of the UK convenience store chains One Stop and Day & Nite, 2002
• C Two-Network in Japan, 2003
• A majority stake in Turkish supermarket chain Kipa in 2003.
• Lotus in Thailand

Victor Value was a London-based supermarket group operating at the lower end of the grocery trade in the 1960s. ... Wikimedia Commons has media related to: England Travel guide to England from Wikitravel English language English law English (people) List of monarchs of England – Kings of England family tree List of English people Angeln (region in northern Germany, presumably the origin of the Angles for whom England is named) UK... 1968 (MCMLXVIII) was a leap year starting on Monday (the link is to a full 1968 calendar). ... 1986 (MCMLXXXVI) is a common year starting on Wednesday of the Gregorian calendar. ... William Low was a chain of supermarkets in Scotland until the company was taken over by Tesco in 1994. ... Transport in Scotland List of not fully sovereign nations National parks (Scotland) Traditional music of Scotland Castles in Scotland Museums in Scotland Abbeys and priories in Scotland List of Universities in Scotland List of Scots List of Scottish writers List of Monarchs of Scotland References This article does not cite... 1994 (MCMXCIV) was a common year starting on Saturday of the Gregorian calendar, and was designated the International year of the Family. ... Tesco Ireland was formed from Power Supermarkets Ltd in 1999, more commonly known as the Quinnsworth and Crazy Prices chain of supermarkets in Ireland; the chain is a subsiduary of Tesco PLC. Tesco operates supermarkets under the Tesco and Tesco Ireland brands, as well as one hypermarket under the Tesco... Royal motto: Quis separabit (Latin: Who will separate?) Northern Irelands location within the UK Official languages English, Irish, Ulster Scots Capital and largest city Belfast First Minister Office suspended Area  - Total Ranked 4th 13,843 km² Population  - Total (2001)  - Density Ranked 4th 1,685,267 122/km² NUTS 1... Associated British Foods (ABF) is a multi-billion pound turnover British multinational with diverse food manufacturing interests and a secondary business in fashion retailing. ... 1997 (MCMXCVII) is a common year starting on Wednesday of the Gregorian calendar. ... 2002 (MMII) is a common year starting on Tuesday of the Gregorian calendar. ... 2002 (MMII) is a common year starting on Tuesday of the Gregorian calendar. ... 2003 (MMIII) is a common year starting on Wednesday of the Gregorian calendar. ... 2003 (MMIII) is a common year starting on Wednesday of the Gregorian calendar. ... Tesco Lotus logo Tesco Lotus is a hypermarket chain in Thailand. ...

Corporate strategy

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 Tesco'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 the grocery market according to retail analysts TNS Superpanel, compared to the 16.8% share of Wal-Mart-owned ASDA and 15.6% share of third-placed Sainsbury's, which had been the market leader until it was overtaken by Tesco in 1995. Key reasons for this success include: TNS Superpanel is a division of the United Kingdom based global market information group Taylor Nelson Sofres, which analyses the British grocery sector. ... Wal-Mart Stores, Inc. ... ASDA is a chain of supermarkets in the United Kingdom offering food, clothing and general merchandise products. ... J Sainsbury plc is the parent company of Sainsburys Supermarkets Ltd, commonly known as Sainsburys, which is a chain of supermarkets in the United Kingdom. ...

• An "inclusive offer". This phrase is used by Tesco to describe its aspiration to appeal to upper, medium and low income customers in the same stores. According to Citigroup retail analyst David McCarthy, "They've pulled off a trick that I'm not aware of any other retailer achieving. That is to appeal to all segments of the market" [1]. By contrast ASDA's marketing strategy is focused heavily on value for money, which can undermine its appeal to upmarket customers even though it actually sells a wide range of upmarket products. During its long term dominance of the supermarket sector Sainsbury's retained an image as a high-priced middle class supermarket which considered itself to have such a wide lead on quality that it did not need to compete on price, and was indifferent to attracting lower-income customers into its stores. This strategy has been adandoned since losing the no.1 spot to Tesco and particularly since the arrival of Justin King as CEO in 2004 who has established a new customer-focused strategy closer to that of Tesco.

• One plank of this inclusivity has been Tesco's use of its own-brand products, including the upmarket "Finest" and low-price "Value" ranges. The company has taken the lead in overcoming customer reluctance to purchasing own brands, which are generally considered to be more profitable for a supermarket as it retains a higher portion of the overall profit than it does for branded products.

• Customer focus: Sir Terry Leahy, chief executive since the mid 1990s, has taken the bold step of trying not to focus on the usual corporate mantra of "maximising shareholder value". The company's mission statement reads, "Our core purpose is, 'To create value for customers to earn their lifetime loyalty'. We deliver this through our values, 'No-one tries harder for customers', and 'Treat people how we like to be treated'". The underlying aim is of course to make higher profits, but there is a clear focus on customer service at the top level of the company. It remains to be seen whether Tesco will be able to maintain this focus now that it is widely perceived as a great corporate success story and the dominant company in the United Kingdom retail market, or if it will succumb to corporate arrogance as sometimes happens to dominant companies.

• Diversification: The company has a four-pronged strategy:
  • "Core UK business" - That is, grocery retailing in its home market. It has been innovative and energetic in finding ways to expand, such as making a large-scale move into the convenience-store sector, which the major supermarket chains have traditionally shunned.
  • "Non-food business" - Many United Kingdom supermarket chains have attempted to diversify into other areas, but Tesco 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 Tesco 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.
  • "Retailing services" - Tesco has taken the lead in its sector in expanding into areas like personal finance (see below), telecoms (see below), 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 United Kingdom have done some of the same things, but Tesco has generally implemented them more effectively, and thus made most profit.
  • "International" - Tesco began to expand internationally in 1994, and in the year ending February 2005 its international operations accounted for just over 20% of sales, or about £7 billion (approximately $13 billion). It has focused mainly on developing markets with weak incumbent retailers in Central Europe and the Far East, rather than on mature markets such as Western Europe and the United States. The medium term aim is to have half of group sales outside the United Kingdom. Tesco rolls out successful UK initiatives in other countries. For example Tesco Financial Services and Tesco Express convenience stores both operate in several markets.

Overall Tesco's success is probably based mainly on getting the basics of retailing right slightly more often than most of its rivals. To meet Wikipedias quality standards, this article or section may require cleanup. ... Justin King is CEO of J Sainsbury plc, parent company of the UK supermarket chain Sainsburys. ... Sir Terry Leahy (born 28th February 1956) is the CEO of Tesco, the largest British supermarket chain. ... CD may stand for: Compact Disc Canadian Forces Decoration Cash Dispenser (at least used in Japan) CD LPMud Driver Centrum-Demokraterne (Centre Democrats of Denmark) Certificate of Deposit České Dráhy (Czech Railways) Chad (NATO country code) Chalmers Datorförening (computer club of the Chalmers University of Technology) a 1960s... Tesco Ireland Limited is a supermarket company in the Republic of Ireland. ... His Masters Voice, often abbreviated to HMV, is a famous trademark in the music business, and for many years was the name of a large record company. ... Golden Discs logo Golden Discs is a large media retailer in Ireland. ...

UK operations

Formats

Tesco's UK stores are divided into five formats, differentiated by size and the range of products sold.

• Tesco Extra are larger, out-of-town hypermarkets that stock all of Tesco's product ranges. The first Extra opened in 1997 and the 100th in the 2004/05 financial year. The number of these is now being increased by about 20 a year, mainly by conversions from the second category. Typical size 66,000 square feet (6,100 m²). As of June 2005 Tesco's largest UK store is in Newcastle and is 120,000 square feet (11,000 m²). A standard Wal-Mart Supercenter in the U.S. is around 200,000 square feet (20,000 m²).
• Tesco stores are standard large supermarkets, stocking groceries plus a 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. It is the "standard" Tesco format, accounting for the majority of UK floorspace. Most are located in suburbs of cities or on the edges of large and medium-sized towns. The typical size is 31,000 square feet (2,900 m²).
• Tesco Metro stores are sized between normal Tesco stores and Tesco Express stores. They are mostly located in city centres and on the high streets of small towns. Typical size is 12,000 square feet (1,100 m²).
• Tesco Express stores are neighbourhood convenience shops, stocking mainly food with an emphasis on higher-margin products (due to lack of economies of scale) alongside everyday essentials. They are found in busy city centre districts and small shopping precincts in residential areas, and on petrol station forecourts. There are 546 stores at 26 February 2005 year end, with a typical size of 2,000 square feet (190 m²).
• One Stop The only category which does not include the word Tesco in its name. These are the very smallest stores. They were part of the T&S Stores business but, unlike many which have been converted to Tesco Express, these will keep their old name. There are more than 500 of them. Typical size 1,300 square feet (120 m²).

In May 2005 Tesco confirmed that it will be trialing a non-food only format [2]: In commerce, a hypermarket (from the French hypermarché) is a store which combines a supermarket and a department store. ... This article is about a city in the United Kingdom. ... February 26 is the 57th day of the year in the Gregorian Calendar. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ...

• Tesco Homeplus : These stores offer all of Tesco's ranges except food in warehouse-style units in retail parks. The first one opened in Manchester in September 2005. Tesco is trying this format because only 20% of its customers have access to a Tesco Extra, and the company is restricted in how many of its superstores it can convert into Extras and how quickly it can do so. Large units for non-food retailing are much more readily available.

Store summary at 26 February 2005

At the end of its 2004/05 financial year Tesco's UK store portfolio was as follows. [3]

A foot (plural: feet) is a non-SI unit of distance or length, measuring around a third of a metre. ... The metre (Commonwealth English) or meter (American English) (symbol: m) is the SI base unit of length. ...

Tesco Personal Finance

Tesco has a banking arm called Tesco Personal Finance, which is a 50:50 joint venture with the Royal Bank of Scotland. The products on offer include credits cards, loans, mortgages, savings accounts and several types of insurance, including car, home, life and travel. They are promoted by leaflets in Tesco's stores and through its website. The business made a profit of £202 million for the 52 weeks to 26 February 2005, of which Tesco's share was £101 million. A joint venture (often abbreviated JV, and sometimes known by the older term joint adventure) is a strategic alliance between two or more parties to undertake economic activity together. ... The Royal Bank of Scotland (LSE: RBS) is one of Scotlands four national clearing banks and one of the oldest in the UK, founded in Edinburgh in 1727 by Royal Charter. ... February 26 is the 57th day of the year in the Gregorian Calendar. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ...

Telecoms

Tesco operates ISP, mobile phone and home phone businesses. These are available to UK residential consumers and marketed via the Tesco website and through Tesco stores.

Though it launched its ISP service in 1998, the firm did not get serious about telecoms until 2003. It has not purchased or built a telecoms network, but instead has pursued a strategy of pairing its marketing strength with the expertise of existing telcos. In autumn 2003 Tesco Mobile was launched as a joint venture with O2, and Tesco Home Phone created in partnership with Cable & Wireless. Tesco Mobile currently offers only prepaid accounts. In August 2004 Tesco broadband, an ADSL-based service delivered via BT phone lines, was launched in partnership with NTL. The O2 plc Logo O2 plc (known prior to March 2005 as mmO2 and usually stylised as O2, like the chemical symbol) is a British telecommunications company specialising in mobile phones, previously part of BT Group plc. ... Cable and Wireless (NYSE: CWP) (LSE: CW.) is a British telecommunications company. ... Asymmetric Digital Subscriber Line (ADSL) is a form of DSL, a data communications technology that enables faster data transmission over copper telephone lines than a conventional modem can provide. ... BT Group plc (formerly known as British Telecommunications) which trades as BT (and previously as British Telecom) is the privatised former UK state telecommunications operator . ... NTL NASDAQ: NTLI is a US listed company providing cable services. ...

Tesco announced in December 2004 that it has signed up 500,000 customers to its mobile service in the 12 months since launch. In April 2005 it announced that it had over one million telecom accounts in total, including mobile, fixed line and broadband accounts. [4]

Internet operations

Tesco has operated on the internet in the UK since 1994 and was the first retailer in the world to offer a robust home shopping service in 1996. Tesco also has Internet operations in the Republic of Ireland and South Korea. Grocery sales are available within delivery range of selected stores, goods being hand-picked within each store. This model, in contrast to the warehouse model initially followed by UK competitor Sainsbury, and still followed by UK internet only supermarket Ocado, 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 stores. Nevertheless, it has been popular and is the largest online grocery service in the world. J Sainsbury plc is the parent company of Sainsburys Supermarkets Ltd, commonly known as Sainsburys, which is a chain of supermarkets in the United Kingdom. ... Ocado is an internet based grocery retailer in the United Kingdom. ...

In 2001 Tesco invested in GroceryWorks, a joint venture with Safeway in the United States, operating in the United States and Canada. GroceryWorks has stepped into the void left by the collapse of Webvan, but has not expanded as fast as initially expected. Safeway is a brand name used by several supermarketchains around the world: Safeway Inc. ...

Concerned with poor web response times (at the time of its launch in 1996, broadband was virtually unknown in the UK), Tesco offered a CDROM-based offline ordering program which would connect only to download stock lists and send orders. This was in addition to, rather than instead of, ordering via web forms, but was withdrawn in 2000.

Tesco claims (in its 2005 annual report) to be able to serve 98% of the UK population from its 300 participating stores. Tesco delivers to over 1 million households, with more than 120,000 orders per week, by 1,000 local delivery vans. In the financial year ending 26 February 2005 it recorded online sales up 24.1% to £719 million and profit up 51.8% to £36 million. February 26 is the 57th day of the year in the Gregorian Calendar. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ...

The Tesco.com site is also used as a general portal to most of Tesco's products, including various non-food ranges (under the "Extra" banner), Tesco Personal Finance and the telecoms businesses, as well as extra services which it offers in partnership with specialist companies, such as flights and holidays, music downloads (as of June 2005 Tesco claims a 10% UK market share), gas, electricity and DVD rentals. It does not currently sell clothing online. In May 2005 it introduced a clothing website [5], but initially at least this serves solely as a showcase for Tesco's clothing brands, and customers still have to visit a store to buy.

Operations outside the UK

Many British retailers that have attempted to build an international business have failed. Tesco has responded to the need to be sensitive to local expectations in foreign countries by entering into joint ventures with local partners, such as Samsung Group in South Korea, and appointing a very high proportion of local personnel to management positions. Samsung Group is one of the largest South Korean business groupings. ...

In late 2004 the amount of floorspace Tesco operated outside the United Kingdom surpassed the amount it had in its home market for the first time, although the United Kingdom still accounted for more than 75% of group revenue due to lower sales per unit area outside the UK.

In September 2005 Tesco announced that it was selling its operations in Taiwan to Carrefour and purchasing Carrefour's stores in the Czech Republic and Slovakia. Both companies stated that they were concentrating their efforts in countries where they had strong market positions [6]. Tesco is the grocery market leader in the Republic of Ireland, with a reported November 2005 share of 26.3%. [7] This article is about Carrefour, the company. ...

The following table shows the number of stores, total store size in square feet and sales for Tesco's international operations. All the figures are for 31 December 2004 or the year to 31 December 2004, except for the Republic of Ireland data, which is at 26 February 2005, like the UK figures. December 31 is the 365th day of the year (366th in leap years) in the Gregorian Calendar. ... 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... December 31 is the 365th day of the year (366th in leap years) in the Gregorian Calendar. ... 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... February 26 is the 57th day of the year in the Gregorian Calendar. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ...

Note 1: The business in China is a joint venture and its turnover is not reported in Tesco's 2005 brokers' pack. A foot (plural: feet) is a non-SI unit of distance or length, measuring around a third of a metre. ... A joint venture (often abbreviated JV, and sometimes known by the older term joint adventure) is a strategic alliance between two or more parties to undertake economic activity together. ...

Note 2: Tesco owned a French chain called Catteau between 1992 and 1997. Its existing single store in France is a wine warehouse in Calais, which opened in 1995 and is targeted at British day trippers. Wine is much cheaper in France than in the UK because the duty is far lower. Turnover is not reported separately. The Burghers of Calais, by Rodin, with Calais Hotel de Ville behind Location within France J.M.W. Turner: Calais Pier Calais (Dutch: Kales) is a town in northern France, located at 50°57N 1°52E. It is in the département of Pas-de-Calais, of which it is...

Financial performance

Tesco is listed on the London Stock Exchange under the symbol TSCO. It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. The Source by Greyworld, in the new LSE building The London Stock Exchange (abbreviated LSE) is a stock exchange located in London. ... The Irish Stock Exchange (ISE) is Irelands stock exchange and can trace its history to 1793. ...

All figures below are for the Tesco's financial years, which run for 52 or 53 week periods to late February.

Tesco is between the fourth- and the sixth-largest retailer in the world, depending on how this is calculated. The three largest are Wal-Mart, Carrefour and Home Depot. METRO and Ahold are also larger than Tesco based on total turnover, but METRO's sales include many billions of wholesale turnover and Ahold's many billions of foodservice turnover, and their retail turnovers are less than Tesco's. On its website Tesco claims to be the third-largest retailer in the world. Presumably it is ignoring Home Depot, which as a home improvement company is not in the same business, but is certainly a retailer. Earnings per share (EPS) is the earnings returned on the amount invested initially. ... Wal-Mart Stores, Inc. ... This article is about Carrefour, the company. ... The Home Depot (NYSE: HD) is a home improvement retailer that aims for both the do-it-yourself consumer and the professional in home improvement construction. ... METRO AG is a diversified retail and wholesale/cash and carry group based in Germany. ... Ahold, (in full Koninklijke Ahold N.V., Royal Ahold N.V.), (Euronext: AH , FWB: AHO, NYSE: AHO) based in Zaandam, the Netherlands is one of the worlds largest supermarket operators and one of the worlds largest foodservice and retail companies. ... Wholesaling consists of the sale of goods/merchandise to retailers, to industrial, commercial, institutional, or other professional business users or to other wholesalers and related subordinated services. ... Foodservice (also alternatively spelled as food service) is a business term which is mostly synonymous with catering. ... This article needs to be cleaned up to conform to a higher standard of quality. ...

At 26 February 2005 Tesco operated 1,779 stores in the UK (24.2 million square feet, 2.23 million m²) and 586 outside the UK (27.6 million square feet, 2.54 million m²). Tesco plans to expand UK floorspace by 8% and non-UK floorspace by 20% in 2005/06. February 26 is the 57th day of the year in the Gregorian Calendar. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ...

Tesco's market capitalisation on 31 August 2005 was £25.3 billion ($45.2 billion), which was the largest of any retailer based outside the United States. For the 24 weeks to 13 August 2005 revenue growth was 13.8% and profits increased by 18.7% after tax and 18.0% after tax. ajit suckz pussy August 31 is the 243rd day of the year in the Gregorian calendar (244th in leap years), with 122 days remaining, as the final day of August. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ...

Controversy

Friends Of The Earth campaign logo, in their bid to highlight Tesco monopoly at site http://www.tescopoly.org

Like a number of leading companies, Tesco attracts criticism from those who are suspicious of big business. Tesco is a target for people in the UK who disapprove of large retailers and the effects they can have on farmers, suppliers and smaller competitors. Image File history File links Tescopoly_logo. ... Image File history File links Tescopoly_logo. ... Friends of the Earth is an international network of environmental organizations in 70 countries. ...

The group has also been criticised for its tactics, including allegedly misleading consumers with a "phoney" price war [8] (this claim was made by a rival retailer, which wished to assert that its own price cuts were better; all the major UK supermarkets are experiencing price deflation).

Tesco's 2004 Adminstore acquisition led to local and national protests. Tesco's other store openings and expansions are sometimes contested by campaign groups. These campaigns have not hindered Tesco's expansion programme very much.

Another point of controversy is the recent expansion of Tesco into the convenience store market. When a company controls more than 25% of a business sector in the UK, it is usually blocked from buying other companies in that sector (but not from increasing its market share through organic growth). The Office of Fair Trading currently treats supermarkets and convenience stores as two distinct sectors - although this definition has been challenged by smaller retailers, including the Association of Convenience Stores [9]. A convenience store is a small store or shop, generally accessible or local. ... The Office of Fair Trading or OFT is a UK statutory body established by the Enterprise Act 2002, which seeks to protect the consumer from anti-competitive practices. ...

Tesco is also criticised by those who think that it infringes upon the interests of farmers and smaller suppliers. The company responds by claiming that it follows industry-best practice and sources locally where it can to meet customer demand. In March 2005 the Office of Fair Trading published an audit of the workings of its code of practice on relationships between supermarkets and their suppliers. It reported that no official complaints had been received against Tesco or any of the other major supermarkets, but the supermarkets' critics, including Friends of the Earth, contested that suppliers were prevented from complaining by fear of losing business, and called for more rigorous supervision of the supermarkets. A further report by the Office of Fair Trading in August 2005 concluded that the aims of the Code of Practice were being met. The Office of Fair Trading or OFT is a UK statutory body established by the Enterprise Act 2002, which seeks to protect the consumer from anti-competitive practices. ... Friends of the Earth is an international network of environmental organizations in 70 countries. ... The Office of Fair Trading or OFT is a UK statutory body established by the Enterprise Act 2002, which seeks to protect the consumer from anti-competitive practices. ...

In May 2004, Tesco announced it was reducing sick pay in an attempt to reduce levels of unplanned absence, which however implies that worker's may be forced to work whilst setting their personal health to risk for fear of a decrease in their income.

In December 2005, a committee of UK MPs produced a report accusing Tesco of "riding roughshod over planning rules" [10]. The accusation stemmed from the company's building of a store in Stockport that was 20% larger than the company actually had permission to build. A Member of Parliament, or MP, is a representative elected by the voters of an electoral district to a parliament; in the Westminster system, specifically to the lower house. ...

See also

• Supermarkets in the United Kingdom
• TNS Superpanel

List of current British supermarket chains Aldi (German owned hard discounter) ASDA (American owned, by Wal-Mart) Booths Budgens Centra (Irish chain with supermarkets in Northern Ireland) Co-op, a brand used by various retail co-operatives, including: The Co-operative Group Leeds Co-operative Society Costco (this is a... TNS Superpanel is a division of the United Kingdom based global market information group Taylor Nelson Sofres, which analyses the British grocery sector. ...

References

• Clive Humby, Terry Hunt and Tim Phillips - Scoring Points: How Tesco Is Winning Customer Loyalty (2003) ISBN 074943578X
• Jack Cohen wrote an autobiography Pile it high and sell it cheap.

External links

Official

• Tesco website
• Tesco Broadband

Press coverage

• Retail star hit by tall poppy syndrome - a free market arguement from The Times 11 November 2005.
• Small retailers revolt over the 'Tesco-isation' of the high street. Independent, 19 October 2005
• Wal-Mart calls for probe into dominant Tesco, The Sunday Times, 28 August 2005
• Environmentalists target Tesco, BBC News, 17 June 2004
• Tesco buys Japanese retailer, BBC News, 10 June 2003

Critical sites The Times is a national newspaper published daily in the United Kingdom. ... October 19 is the 292nd day of the year (293rd in leap years) in the Gregorian Calendar. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ... August 28 is the 240th day of the year in the Gregorian Calendar (241st in leap years), with 125 days remaining. ... 2005 (MMV) is a common year starting on Saturday of the Gregorian calendar. ... June 17 is the 168th day of the year in the Gregorian calendar (169th in leap years), with 197 days remaining. ... 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... June 10 is the 161st day of the year in the Gregorian calendar (162nd in leap years), with 204 days remaining. ... 2003 (MMIII) is a common year starting on Wednesday of the Gregorian calendar. ...

• Supermarket Sweep Up, independent blog dedicated to Tesco's business practices
• Very Little Helps : Independent Tesco Community Forum
• Site highlighting Tescopoly - anti Tesco site

Other

• Tesco structure chart