MarketLine Blog

How Tesco Became the UK’s Largest Retailer?

Tesco is the largest retailer in the UK and dominates the UK food and grocery market, accounting for almost a third of all grocery sales. This article examines the factors that have led to the growth of the company as the UK’s number one retailer.

In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to the rise of Tesco. The company has created a powerful brand and a number of valuable sub-brands including store, product and service brands. Tesco’s grocery product brands tend to center around a three-tier branding system, allowing the company to appeal to a mass market. Tesco has been a forerunner in the price competitive environment of the UK food and grocery market, utilizing its economies of scale to lead price wars with other supermarkets. The company has grown inorganically, buying out various independent grocers and supermarket chains over the years. The wide range and sheer number of stores has been a significant factor in driving sales growth for the company. Tesco has diversified from traditional food retail, selling a wide range of products including clothing, electrical goods, homewares, fuel and much more. Non-food products tend to have much bigger profit margins than traditional groceries. Tesco has been the leader for change in the UK food and grocery market, introducing such initiatives as 24 hour shopping, self-checkout, and online retailing.

Find this interesting. For more, please read Tesco Case Study: How Tesco Became the UK’s Largest Retailer or company reports on Tesco

1 Comment

  • Its i really nice post,thanks for sharing such post.I like to read this type of post.

    Homeware store

    Stylewar on 22 April 2013 at 8:24am

Leave a comment

*Required fields. We will not publish your email address