Tesco is a British multinational company that sells groceries and retails merchandise. The company has its headquartered in Welwyn Garden City which is located in England. Tesco is given the title of being the third-largest retailer in the world according to its gross revenues and the ninth-largest retailer in the world. It has its outlets spread across seven countries which are namely Europe, the USA, and Asia. The company is also the number one retailer of groceries in Ireland, Hungary and Thailand, and the UK because it is known to have a market share of around 28.4%.
Tesco is one of the most popular brands as everyone in the United Kingdom knows and prefers to do their grocery shopping from there. The company also competes with other local grocery and general merchandising companies. The British Conglomerate has earned a name for itself by providing its customers with organic groceries. The company is focused on making an eco-friendly change by making strategic acquisitions and subsidiaries. The United Kingdom now has a variety of hypermarket style stores and Tesco’s express high street outlets which are more than 2,200 stores.
Tesco also offers a range of products and services that are out of the box for grocery retailers such as Banking, insurance services, electronics goods as well as telephone equipment, and airtime. Tesco has also introduced something called ‘one-stop shopping’ which allows its customers to purchase everything they need just from one place. With this tactic and its online website, the company has managed to expand its customer base to over one million regular users.
History of Tesco
The company had its humble beginning in 1919 with the efforts of Jack Cohen, who started with a number of market stalls in Hackney, London. The founder Jack Cohen sold groceries from a small stall in the east end of London, with a minimal profit of 1 to 4 euros. He then brought huge stocks of tea from the T E Stockwell Company, combined their names, and thus created the Tesco brand. The first store that opened in the name of Tesco was located in North London in the year 1929.
Tesco opened its first shop in the year of 1931 and within eight years it expanded to over 100 shops across the country. But it wasn’t until the 1990s that it expanded internationally to more than 11 countries. By then the company had expanded to retailing a variety of different things such as books, clothing, electronics, furniture, toys, petrol, software even financial services, telecoms, and internet services. Tesco is listed on the London Stock Exchange and is also present in the FTSE 100 Index. As of 2015, Tesco's market capitalization was up to 18.1 billion euros.
Tesco has recently been trying to make more acquisitions in order to satisfy the needs of all the customers. The company's main goal is to serve its customers and make sure that all its customers are happy and choose the retail services again. Tesco’s record-breaking sales of more than 1 billion euros a week and better than expected annual profits of more than 3.4 billion euros for the 53 weeks in 2010.
List of Tesco Acquisitions
Tesco's first acquisition occurred in 1957 when it brought 70 Williamson stores which were both shops and restaurants that sold meat. The second well knows acquisition made by the company is of 200 harrow stores in the year of 1959. The company then brought 212 Irwin stores of Liverpool in 1960. It then acquired 97 self-service locations from the Charles Phillips Company and 49 bakeries and cafes from Cadena in 1964. In 1965, it acquired Adsega which is a Manchester company. The company took a break from making more acquisitions until 1980 when it brought Cartier stores in Kent.
Seven years later, Tesco completed a hostile takeover of the Hilliards chain through which it now had the control of more than 40 supermarkets in England. Tesco continued to make strategic investments throughout the 1990s and increase the list of acquisitions like Holland, Willaim Low, and Savia chain. The company bought Associated British Foods, which gave the company the ownership of the Quinnsworth, Stewarts, and Crazy Prices chains all of which were all located in Ireland. The other key deals include:
- The purchase of 13 HIT hypermarkets in Poland in 2002
- The purchase of Kipa shops in Japan in 2003
- The acquisition of Admin store convenience stores in London in 2004
- Buying out 21 Safeway/BP stores in 2005
- Purchasing an 80% stake in Leader Price supermarkets in Poland in 2005
- Buying Dobbies Garden Centres and Homeplus in 2008
- Acquiring retail consultancy Dunnhumby in 2010
- The purchase of Mobcast Services which is a mobile book platform in 2012
- Partnering with Euphorium Bakery in 2012
- Acquiring Giraffe restaurants and cafes in 2013
- Purchasing food wholesaler Booker Group in 2017
List of Tesco Subsidiaries
This chain of companies is known for its food wholesale operation, for providing branded and private-label goods to more than 400,000 customers, including convenience stores, grocery stores, pubs, and restaurants. Booker is credited for founding the booker prize for fictional literature in 1968. Tesco acquired the company in 2017 for the price of 3.7 Billion dollars. Booker became Tesco’s subsidiary in the year 2018. Booker also has stores like the Budgens, Londis, euro shopper, and premier stores brands under the company.
Tesco Bank is a popular British retail bank which was brought by Tesco in 2008. The bank came into existence with the joint venture between the royal bank of Scotland and Tesco which was the largest supermarket in the United Kingdom even at that time. The services that the bank is known for are credit cards, loans, mortgages, savings accounts, and several types of car, home life, and travel. They were first promoted by pamphlets in Tesco’s shop and through its website.
The Royal Bank of Scotland also fully became a Tesco subsidiary and now operates under its own banking license offering its customers financial services and compensation schemes. The services of the bank include insurance, credit card loans, savings, mortgages, and travel products. One thing that is unique about Tesco’s banking products is that’s the bank is able to leverage its large customer base to cross-sell financial service’s products. With the help of this, the customers can get Tesco club card points when they purchase any financial services.
The company was first started in May 2003. The countries in which Tesco operates its mobile phone business are United Kingdom, Ireland, Slovakia, Hungary, and the Czech republics. This company is known to be operated using the 02 and three island as its carriers. By January 2011, Tesco announced it had over 2.5 million UK mobile customers which were considered successful for Tesco in that year. Tesco is also known to have operated a home telephone and broadband business.
In August 2004, the company started its broadband services in order to go with its already existing internet service provider business, providing an ADSL-based service delivered via BT phone lines. It started offering a 4G network service with no extra cost for its monthly and sim users. In January 2015, Tesco had to sell its home telephone and broadband business for around 5 million. The customers also transferred by the next year. The company now says that over 5 million people use Tesco mobile services, while more than 98% choose them again.
In 2001, Tesco launched F and F which is also called Florence and Fred in its UK and Ireland supermarkets. In 2010, the brand started to open f & f stores in and around London city. The company expanded to various countries both offline and on online websites during the 2010s. After this, F&F started falling as it lost its online presence in the UK which changed after it partnered with Next PLC a year later. Tesco launched a scaled-down version of F and F on Tesco.com soon after its deal with Next. The company now offers a wide selection of clothes with the latest styles for men, women, and kids from 607 different stores.
Tesco Tech Support
Tesco brought a small I.T. Support Company called The PC Guys in 2007, which lead to the launch of Tesco Tech Support in December of 2008.
Tesco is now a globally known company. It has its stores in countries like UK, China, Japan, Ireland, Poland, and The United States. It has a total of 4,811 stores including 2482 in Britain alone, it also has 472000 plus staff members worldwide. It also claims to be the most profitable grocery retailer in the world. The sales generated by the company account for almost 62.5 billion pounds with a profit of 3.4 billion pounds.
1. What are the subsidiaries of Tesco?
- Tesco Tech Support
- Tesco Mobile
- Tesco bank
- Booker Group
2. What are the main acquisitions of Tesco?
- HIT hypermarkets in 2002
- Kipa shops in Japan in 2003
- Admin store convenience stores in London in 2004
- Leader Price supermarkets in 2005
- Buying Dobbies Garden Centres and Homeplus in 2008
- Dunnhumby in 2010
- Mobcast Services in 2012
- Euphorium Bakery in 2012
- Giraffe restaurants and cafes in 2013
- Booker Group in 2017
3. What is Tesco known for?
Tesco is a popular UK supermarket chain and 4th largest retailer in the world and most profitable online grocery retailer in the world.