Information AboutTesco |
Tesco Plc is a UK -based international grocery and general merchandising retail chain. It is the largest British Retail er by both global sales and domestic market share, is the world's third-largest Grocery Retailer ,1 and is the fourth-largest retailer behind Wal-Mart of the United States , Carrefour of France , and The Home Depot of the United States.2 Tesco now controls just over 30% of the grocery market in the UK, approximate to the combined market share of its closest rivals, Asda and Sainsbury's . In 2007, the supermarket chain announced over £2.5 billion in profits. Originally specialising in food, it has Diversified into areas such as discount Clothes , Consumer Electronics , consumer Financial Services , selling and renting DVDs ,3 Compact Discs and Music Downloads , Internet Service consumer Telecoms , budget software. They are now entering into the housing market, with a self advertising website called Tesco Property Market. HISTORY Formation Tesco was founded, as a one-man business, by Jack Cohen in London 's East End . He came from a modest background, being the son of a Polish tailor. He began selling groceries in Well Street market, Hackney , in 1919 after World War 1. The £30 demobilisation money he received after serving in the First World War was spent on purchasing goods for that first stall. At this time rations and supplies were low, so he would buy damaged goods from other businesses and resell them at reasonable prices. The Tesco brand first appeared in 1924. The name came about after 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 (TES) forming the word "TESCO".4 The first Tesco store was opened in 1929 in Burnt Oak , Edgware , Middlesex. Tesco floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. The first self service store opened in St Albans in 1947,5 and the first supermarket in Maldon in 1956 .6 During the 1950s and the 1960s Tesco grew organically, but also through acquisitions to the point where it owned more than 800 stores; the company purchased 70 Williamsons stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960), 97 Charles Phillips stores (1964) and the Victor Value chain (1968) (sold to Bejam in 1986).7 Management and strategy changes The founder, Jack Cohen , was an enthusiastic advocate of trading stamps as an inducement for shoppers to patronise his stores: he signed up to Green Shield Stamps in 1963, and became one of the company’s largest clients.8 In 1973 Jack Cohen resigned and was replaced as Chairman by his son-in-law Leslie Porter . Porter and managing director Ian MacLaurin abandoned the "pile it high sell it cheap" philosophy of Cohen which had left the company "stagnating" and with a "bad image".9 In 1977 Tesco launched "Operation Checkout" which saw it abandon Green Shield stamps in favour of cutting prices and centralised buying for all of its stores. The result was a rise in market share of 4% in two months. 1980s In May 1987 Tesco completed its hostile takeover of the Hillards chain of 40 supermarkets in the north of England for GB£ 220 million.10 1990s In 1994 , the company took over the Scottish supermarket chain William Low . Tesco successfully fought off Sainsbury's for control of the Dundee -based firm, which operated 57 stores. This paved the way for Tesco to expand its presence in Scotland, which was weaker than in England. Inverness was recently branded as "Tescotown",11 because well over 50p in every £1 spent on food is believed to be spent in its three Tesco stores. In 1995 , Tesco became the UK's market leader in the supermarket sector, beating Sainsbury's . It introduced a Loyalty Card , branded ' Clubcard ', in 1995 and later an Internet shopping service. As of November 2006 Tesco was the only retailer to make online shopping profitable.12 Terry Leahy assumed the role of chief executive on 21 February 1997 , the announcement having been made on 21 November 1995 .1314 On 21 March 1997 Tesco announced the purchase of the retail arm of Associated British Foods which consisted of the Quinnsworth , Stewarts and Crazy Prices chains in the Republic Of Ireland and Northern Ireland , as well as associated businesses for GB£640 million.15 The deal was approved by the European Commission on 6 May 1997 .16 This acquisition gave it both a major presence in the Republic of Ireland, and a larger presence in Northern Ireland than Sainsbury's which had begun its move into the province in 1995. 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. The "typewriter" typeface that the company had been using since the 1970s for its in-store signage was also dropped during this period. 2000s In July 2001 it became involved in internet grocery retailing in the USA when it obtained a 35% stake in GroceryWorks. In 2002 Tesco purchased 13 HIT hypermarkets in Poland . It also made a major move into the UK convenience store market with its purchase of T & S Stores, owner of 870 convenience stores in the One Stop , Dillons and Day & Nite chains in the UK. |
|
|