Strategic Implications Relevant to the Retail Format of Tesco

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Part 01: Introduction In the distribution channel of any product, retailers play the most vital role by handing over the products and services to the final customers. Some retailers follow only traditional format, i.e. physical store. Whereas, some retailers follow multi format at the same time, i.e. store, e-retailing, catalog etc. TESCO is now the largest retailer of UK and the third largest retailer of the world (TESCO, 2011) operating in different countries. In the recent economic downturn throughout the world, the UK economy has also suffered a drastic cut in spending by the consumers. The retailing industry suffers more than any other sectors in the times of recession in a consumer society (Hallsworth, 1995). As a result, the UK retail industry has also lost heavily the opportunities to grow in the ongoing recession. In this scenario, large scale or mega retailers like TESCO faces an increased challenge to devise strategies to survive through the hard time. They also need to adjust their retail formats to survive and secure the needed growth. Part 02: About TESCO TESCO is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand. The company was founded by Jack Cohen in 1919 and opened its first store in 1929 in Burnt Oak, Edgware, and Middlesex. The TESCO name first appeared after Cohen purchased a shipment of tea from T.E. Stockwell and combined those initials with the first two letters of his surname. Originally a UK-focused grocery retailer,

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