Tesco is in the private sector, belonging to the tertiary sector. This is because it provides a service by selling products to customer. Tesco is a public limited company which means that people can buy shares from the company.
How Tesco was formed:
Tesco was founded by Jack Cohen. He was a worker at the Royal Air Force during the First World War. At the age of 21, in 1919, Jack invested 30 pounds that he has got as an achievement for helping people during the war. With this he bought vegetables and on the same day he made a profit of £ 4. 00. He then decided to carry on with the business and then he opened a stall, after a few months he had already opened stalls in other markets.
The name Tesco contains the initials of the owner, Mr. T. E. Stockwell, who supplied the firm with tea and of the initials of Jack’s surname Cohen. In 1929, the name Tesco first appeared above a shop in North London.
This business slowly expanded and within a few years many other stores where developed with excellent facilities and products.
Tesco history time line:
1920: Tesco was formed when T.E. Stockwell and Jack Cohen came together. The brand name of Tesco came from the initials of T.E. Stockwell. The first Tesco store was opened in Burnt Oak, Edgware.
1930: in the USA a self service supermarkets was opened and a large number of products were sold with offering customers good prices.
1940: Jack Cohen opened the first store in St Albans and the first self service supermarket also opened.
1960: Tesco was a famous business and became well known amongst people. They now sold groceries, clothing and many more. Also they opened the largest store in Europe.
1970: Now Tesco was focusing more on how to increase their Sales by selling their products at competitive prices and introducing many other products to sell, then Tesco made their store look more attractive by increasing the length and width of the aisles and by better lighting in the stores. This was a success to the business and in one year Tesco sale increased from 6% to 12%, its annual turnover reached to £I billion.
1980: Tesco opened its 100th stores and announced a £500 million programme to build another 29 stores.
1990: Tesco introduced customers loyalty club card which gave many benefits to their customers. In the 1990s they also start providing online shopping and deliveries. Now Tesco was a big company and did nearly every thing.
2000: Tesco has about 700 stores with employing 400,000 people every year. The business is becoming famous not only in Europe but also in Asia. Tesco sells every sort of products at a competitive price and is the number one food retailer store.
Tesco Share Price over the last three years:
This graph shows the share prices for three years. From this graph we can say that Tesco is a very successful business because its share prices are increasing year by year.
Major events affecting the share prices:
In the beginning of 2004 the share prices were positive because many people were buying share from the Tesco then at the end of 2005 the Share price dropped because many events took place during the 2005 like people could not travel any where because they were afraid of the terrorist attacks and the air high hackers which meant that no one bought travel insurance from Tesco which meant that sales were affected making the share prices go down.
In 2006 the share prices started to increase once again because now people had start traveling again. Also Tesco had opened many other departments within the store like they have opened a healthy eating department were they sell health nutrition food. This increased sales which mean that it had increased the share prices.
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