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Tesco
Tesco is a large British-based international grocery and general merchandise retailer founded in 1924. It developed rapidly through acquisitions in the 1950s and 1960s and became the largest retailer in the UK by the 1990s. Tesco now operates stores across Europe and Asia, employing over 470,000 people worldwide. While still the top grocer in the UK, Tesco has faced increased competition in recent years from rivals Sainsbury's and Asda, and saw a slight decrease in revenues in 2011. To address challenges, Tesco is investing in improving stores, hiring more employees, and innovating through new online and mobile offerings.
Tesco
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- 2. • Introduction • Historical and placeon the market • • • Historical The market: Topologu an data Different ways of distribution • The stores • Internet • The innovations • Conclusion
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- 4. 1956 1924 1929 1948 Appearance of the brand Tesco Openingof the first store First service store First supermarket in London 50’s and 60’s Development throgh acquisitions (more than 800) 1979 Annual sales exceed one billion pound
- 5. 1992 •Appearance of the slogan «every little helps » •Opening of the first Tesco Metro in London 1995 1997 •New CEO, Terry Leahy •316% increase in turnover 2000 •Launch of the website Tesco.com 2011 •Philip Clarke succeeded Terry Leahy
- 6. Distributor based in theUK, Ireland and Asia The 3rd distributor global 2011: Turnover of 81,5 billion Euros The 1st distributor in UK Activity Distribution of: food and nonfood, phone service
- 7. • • Distribution of revenues: Implementedin 6 countries in Europe: more than 800 stores 9 11 UK Europe • Implemented in Asia: more than 1100 stores Asia 80
- 8. 472 000 employees: including282 000 employees in the UK 16 billion customers are holders of the loyalty card 5008 stores: including 2545 in the UK
- 9. Decrease of 0.6%of turnover ROCE: 12.9% of turnover Sales representing 66% of turnover (53.77 billion Euros) Commercial margin: 6.1%
- 10. Strong competition Lack of employees in store Supplynot Too many sufficiently hypermarkets differenciated
- 11. Recruitment and trainingof 8000 new employees (245 million Euros) Renovation store (245 million Euros) Continuing “Big price Drop” Improve supply Reorientation marketing and communication Improve online
- 12. • Loss of customersat Tesco • Increase of sales at Sainsbury’s • Asda: “Everyday low price” • Tesco: “Big price Drop” • The gap with competitors as Sainsbury’s has narrowed: • • • 2004: 6% 2011: 2,9% Asda: • • • 360 stores in UK in 2010 385 stores in 2011 More 25 store in 2012
- 13. 90’s • 20 commitmentstowards the customer 1995 • Club Card • Analyse customer’s behaviour
- 14. • The catalogue TescoRewards • Creation of a « low prices » range, while keeping the Premium range • 50% of products are from distributors
- 15. 177 Tesco Extra 967 Tesco Express 448Tesco Superstores 174 Tesco Metro One Stop Tesco Homeplus
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- 24. • In Tokyo • With asmartphone, you can collect the information and order products • The result of the shopping is delivered at home
- 27. • Why? •Way ofworking •Database
- 29. • Place on themarket • Different ways of distribution, in order to extend the offer • Various ways of innovation
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