Report on Tesco location

Investigation into the suitability of a Superstore in Slough

"To retain loyal customers"

Introduction

For the last six months I have been carrying out a thorough investigation into the suitability of a superstore in Slough. In this report I have outlined most of the key factors in this report that could contribute to the success of a superstore in Slough.

Trading Estate

Slough currently has the second largest trading estate in Europe, which employs over 25,000 people. Due to this there is a very high employment rate in Slough:

“Unemployment between 2000 – 2500 people (this equates to 3%) – is amongst the lowest in the country”.

The very high employment rate in Slough means the public has a lot more spending power. This is why there is such high business activity in Slough which can only be beneficial for Tesco as they will be much more likely to get higher sales and profit. The trading estate is also reason to many people commuting into Slough regularly; Tesco could be the shop they ‘pop into on the way home’.

The trading estate shows that Slough isn’t a developing area rather it is a well-developed industrial area with a well-established and healthy economy, consisting of high business activity. This is one of the reasons it is a rich prosperous area, which is ideal to invest in.

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The Trading Estate also means that a lot of people travel into the town regularly because of the massive number of jobs available and over 32% of these jobs come from the trading estate.

I believe that the number of jobs the Trading Estate currently offers is a huge benefactor to the existence of a superstore in Slough. The spending power is very high in this town and mainly due to the trading estate, there is a gap in this market in Slough and I believe Tesco should act quickly to saturate it.

Ever Increasing Population

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The Trading Estate also means that a lot of people travel into the town regularly because of the massive number of jobs available and over 32% of these jobs come from the trading estate.

Ever Increasing Population

Over the last 10 years the population of Slough has been increasing hugely because of interchangeable factors consisting of its closeness to London, as it is only 20 miles away.

Above is a table showing the increase in population in Slough from 1992 – 2001. One of the main causes for this increase as mentioned before is the closeness to the capital, London. House prices are generally much cheaper in Slough in comparison to London and because of the little distance between the two areas, many people live in Slough and look to commute into London. As well the cheaper house prices, Slough also provides a much lower cost of living whereas London is one of the most expensive places to live in the world. In addition to this the commuters are also benefited by the fact that Slough has a lot of transport links including Bus & Train stations as well as being next to the motorway. A highlight of the transport from Slough to London is that an Intercity train leaves every 15 minutes in the morning and it takes 20 minutes from Slough to Paddington.

Furthermore due to the massive increase of population in Slough companies like Kingsow, Barrats and Redrow have developed and built over 2000 homes in Slough. This shows how Slough is still expanding and is a very good prospect to invest into. Due to these companies there has been huge developments in housing estates in Slough an example of this is Windsor Meadows which has been developed and accommodates much more families and as we, Tesco sell an everyday consumer product, this can only benefit us.

The increasing population also relates to the amount of jobs currently offered by Slough.

“Slough currently provides 78,000 jobs”

The fact that Slough currently provides 78,000 jobs is astonishing and it is one of the key factors for so much people seeking residence in the town, attracting people from all over the country.

I believe that the increase of the population is very positive and convincing. I am therefore led to believe that the population will further increase, increasing the necessity to many for a supermarket providing food and drink, Tesco.

Competition

Another favourable aspect of opening a superstore in Slough is the lack of competition in the area. The nearest competitor for Tesco is Sainsburys, which is around 3 miles away from the Tesco store, and it is very small in comparison to the Tesco store. The only other competitor in the Slough area is Asda which is around 3 miles away from the Tesco store and tucked away in a

housing estate. This demonstrates the real lack of competition in the area and shows how easy it is for Tesco to take over the Slough supermarket share.

As well as the lack of competition there is no real superstore in Slough or in any surrounding town for that matter, this will help Tesco to capture the public of Maidenhead, Marlow and Windsor etc. as well as the Slough public. This is another reason why a Tesco superstore would have no problem coping with any ‘competition’ as there isn’t another superstore for miles. Due to these two factors in competition, I can conclude that there is minimal risk of the investment into a superstore into Slough. I can also say that I would completely expect Tesco to get a brilliant return on their investment; it would help us to meet our Aims and Objectives and strive towards becoming a bigger and better company.

I hope the information enclosed in this report is of use to you and I truly hope you decide to invest into such a prosperous location that can only take the company forward. If you should require any further information please do not hesitate to contact me.