Tesco’s marketing of their clubcard creates awareness to the public of the benefits of shopping with Tesco. This helps build relationships with the customers. Clubcard allows Tesco to show their appreciation to over 11 million customers for shopping with them and they are always looking to find new ways to do this.
Tesco will have loyal committed staff.
Tesco’s share in success scheme rewards eligible staff for their hard work and commitment with free Tesco shares and our staff are benefiting from £169 million from shares in success and save as you earn schemes. Their award-winning defined benefit pension scheme now has nearly 137,000 members which covers nearly 60% of staff. This year they have given a cash contribution into the scheme of £200 million to strengthen its funding position.
Tesco will be a global retailer.
Tesco’s first store @ Punchang opened in 2002 they have opened a further five stores since, including a 107,000 square foot hypermarket on the island of Penang. Tesco employ 2.700 people and will almost double the number of stores in Malaysia in the current year.
They entered South Korea in 1999 through a joint venture with Samsung. Tesco are now Koreas 2nd largest retailer with 32 hypermarkets and they have extended their offer for convenience with seven new express stores.
Tesco will be strong in non-food as it is in food.
This will be a continuous objective also for Tesco as they want to focus on expanding into new markets and getting and sustaining as large a market share as they can. This will not be easy or simple to achieve in the short term so Tesco’s will be constantly working at trying to achieve success in markets other than food.
Tesco have already branched out into new markets and have their own clothing range, Cherokee. They also supply electrical items such as TV’s, microwaves and kettles and toasters. Tesco have also gone into the telecommunications field and now sell mobile phones for excellent prices.
Increase their profits
Tesco- Britain’s largest retailer, had so many consumers through door- here and aboard, over phone and internet, profits jumped from 17% to 2.2 billion
They revealed its pre tax profits rose 16.9% for the 12 months to February 2006 while sales climbed 13.2% to £38 billion.
It isn’t just food consumers pile into Tesco trolleys these days, it also includes clothes, books, telephones, electricity, electrical goods, music, travel, telephone services, insurance banking and petrol.
Tescos founder the late Jack Cohen began trading on the market in London’s east end in 1919 with £30.
Tesco said that their profits are due to the growth of sales of their non-food market such as TV’s and DVD’s – which helped produce profits of £1.07 billion, up 12% since last year.
Increase their market share
Tescos share of the UK supermarket sales rose to 30.6% in the 12 weeks to 29th jan 2006 up from 30.5% the previous quarter, while its market share is up from 29% a year ago.
The supermarket chain, which accounts for £1 in ever £8 spent by shoppers, made record profits of £2billion in 2005. Tescos sales continue to storm ahead while rivals struggle.
Tescos operates more than 2.300 stores in 13 countries including Japan, Poland, Turkey, Hungry and a joint venture in China.
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In the UK, its largest market, sales for the year to 26th February rose by 11.9%
- Non-food sales rose 17% to £6 billion, with the group highlighting a 28% increase in sales of its clothing range.
- Profit at its online operation grew 51.8% to £36 million, on the back of sales of £719 million
- Tesco said sales at its international operations in Asia and Central and Eastern Europe were up 13.1%
Below is a diagram of Tescos steady rise to gaining the most market share and overtaking any competitors
Increase number of stores worldwide
They own over 2000 stores in the UK employing 250,000 staff. Overseas stores account for 20 percent of group profits. Independent grocers argue that Tesco should have been barred from buying up hundreds of corner shops to cement its position.
It is evident from the above graph that Tesco’s have increased their number of stores steadily over 5 years have opened over 1.500 stores.
In Tesco, the past year saw substantial international expansion with non – UK sales now accounting for nearly a quarter of Tesco’s total revenue. In just 1 year they opened over 110 stores and 79 hypermarkets.
Table stating number of international stores.
They opened their first overseas store in Eastern Europe in 1995, three years later, it opened its first store in Asia. Today operates in 440 stores in twelve international markets including a recently purchased hypermarket chain in China.
Their overseas operations now account for 41% of its operating space and nearly 20% of all its revenue – 11% in mainland Europe and 8% in Asia.
Picture of Tescos operations across the world.
- Rep of Ireland
- CRepublic
- Hungry
- Poland
- Slovakia
- Turkey
- South Korea
- Japan
- Taiwan
- Malaysia
- Thailand
- China
Tesco saw strong sales both in the UK and Abroad, with UK sales rising 10.7% and foreign sales increasing by 23% in 2005.
Tesco said sales at its international operations in Asia and Central Eastern Europe where up 13.1% they also added that it intended to create 25000 jobs worldwide this year, including about 11,000 in the UK.
