In the year 2000, the Tesco online sales service published which named “Tesco.com” (Tesco.com). From the published time until now, Tesco.com is the biggest sales channel on food aspects.
Based on the joint efforts from the Tesco’s various operators, in this year, Tesco rank 59 based on the GLOBAL 500 which published on Fortune Magazine in year 2012 (CNN Money, 2012) (The Global 500 is in Appendix No.1) From the list it can see that the biggest retail company Wal-Mart Stores ranking in the third place and the second retail company is Carrefour who ranking in 39 position. Following Retail Company is Tesco who is in 59 positions. Base on the ranking of Global 500 in Fortune Magazine, the position that Tesco is one of the world biggest retail company shows clearly.
However, recently, the operation of Tesco did not go very well. Tesco has announced a £1 billion pound plan whose main idea is to recovery the Tesco UK supermarket (Press Association, 2013). The plan includes hiring more staff, shop decoration, strength the online shopping systems and so on. However, as it so far, the results did not go well. By invested £1 billion pound, almost £850 million has been loss until the December 2012 (Felsted. A, 2012). A vote results published in the February of 2013 that Tesco has been voted as the UK’s worst supermarket (Press Association, 2013). Although Tesco is the biggest retail company, Tesco did not satisfy the UK customers. Based on the vote, Tesco was at the bottom of the table among nine supermarkets. The list is as below.
Rank 1 2 3 4 5 6 7 8 9
Name Waitrose Aldi Lidl M&S Morrisons Sainsbury Asda Co-operative Tesco
Mark 82% 74% 69% 68% 59% 58% 53% 48% 45% --- Press Association, 2013
The above results published in the February of 2013 and the plan announced in 2012. Based on these results, the plan of Tesco did not go well.
Tesco has just announced the financial result in the April of 2013. The results show that the group sales of Tesco in financial term 2012 and 2013 are £72,363 million (Tesco, 2013). Compare with the last year, the growth rate is 1.3%. The result is much lower than the year before. The following listed the last five year’s data for the group sales of Tesco for comparison.
Year 2013 2012 2011 2010 2009
Group Sales £72,363 m £72,035 m £67,573 m £62,537 m £59,426 m
Growth Rate 1.3% 7.4% 8.1% 6.8% 9.5%
Above table shows that the group sales are increasing each year, however, the growth rate is getting smaller and smaller. Before the financial term 2012 and 2013, the growth rate is also above 6%. The growth rate for 2012 and 2013 is only 1.3%, which is also the year that the £1 billion plan announced…