An evaluation of Tesco’s competitive position

within the food industry market.

Corporate strategy ASB-4004.

December the 14th 2009.

Carey Griffiths- pspa57, 500 229750

Shahbaz Ansari- abpa40, 500 200603

Young Jung Lee- abu69e, 500 164488

Marian Quartey- abpa56, 500 211201

Tao Yuan- abpae4, 500 224103

Ao Zhang- elu654, 500 173523

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 Word count- 3300 excluding references, appendices, and
tables.

Contents page

Introduction P3

History P3

Business strategy P3

Corporate strategy P3

Company values P3

Value chain P4

Joint Ventures and Mergers and Acquisitions P4

PESTEL analysis P5

Competitors P7

Figure 1: Tesco’s main competitors P7

Figure 2: Ansoff matrix for Tesco’s marketing strategy P8

Figure 3: Tesco’s sub-bran poisition in the United Kingdom P9

Figure 4: Tesco’s competition in the UK

P10

Figure 5: Tesco’s internal competition P10

Core competencies P11

Human Resource P12

Recommendations P13

Conclusions P14

References P15

Appendices P17

Appendix 1: Retail Competitors Analysis by Mintel

P17

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 Appendix 2: Leading UK food retailers, market shares, 2008
P18

Appendix 3: Tesco UK store formats, 2008/09 P

19

Introduction
The company that our group has chosen to analyse is Tesco. Tesco was
founded in 1919 by Jack Cohen who began his new venture by selling
surplus groceries from a stall in the east end of London; One his first day
he made £1 profit and £4 of sales (Tescoplc.com [history]). Tesco has
come a long way since then and is now one of the largest food retailers in
the world, operating around 2,318 stores and employing over 326,000
people. Not only has Tesco managed to monopolise the food sector, they
have also diversified into a number of other sectors, some of which being
insurance, mobile networks, clothing, and electronics. However, this
report shall have a focus of the food sector in the United Kingdom.

Albeit that Tesco has 2,200 stores locally, it is categorised as operating in

a globalised environment. Currently Tesco has stores in seven European
countries; the United Kingdom, Poland, Hungary, Turkey, Slovakia, Czech
Republic, and the Republic of Ireland. Furthermore also operates in Asia,
stores can be found in China, Malaysia, Japan, Korea, Thailand, and
Taiwan (Tescoplc.com [community plan]; Tescoplc.com [core UK]).

The long term business strategy of Tesco is currently fivefold; to be a

successful international retailer; to grow the core UK business; to be as
strong in the non-food arena as the food arena; to develop retailing
services- such as tesco.com, Telecoms, and Tesco personal finance; and
to put community at the heart of what they do (Tescopl.com [long term
strategy]).

How Tesco chose to implement the corporate strategy is via a steering

wheel model; that all of the key elements of the business, customers,
operations, people, finance, and community, are dealt with an equal and
balanced scorecard (Tescoplc.com [CR strategy]). It has been stated by
Tesco that the steering wheel has been implemented to place emphasis
on the fact that corporate responsibility is not a specialist function in

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Tesco, it is a part of everybody’s job every day (Tescoplc.com [CR
strategy]).

Tesco works off the business value that their “core purpose is to create
value for customers to earn their lifetime loyalty” (Tescoplc.com [our
values]). Great emphasis is placed within “people”, without their
customers and employees Tesco’s success would not have been possible.

For the remainder of this report the variables that can affect Tesco’s
competitive advantage shall be considered and evaluated.

Value chain
When considering the value chain of Tesco there are a number of primary
variables that can either add value (+), lose value (-), or have the
potential to add value (P+).

For the primary activities;

Inbound logistics
These have an integral importance in the creation of the value chain as
they provide the earliest opportunity to create value, therefore because of
the elements related to the logistics Tesco try to achieve and maintain the
level of consumer choice in store (+). The efficiency of distribution system
of Tesco does need to be improved (+), and the quality control system
should be managed by the company efficiently so that the cost of losses
are not imposed upon the customers (P+).

Operations
Tesco’s core operations are service orientated and these services involve
opening and closing the store, shelf maintenance, and replenishing the
stock (+).

Outbound logistics
The main emphasis for this stage in the chain is delivering the product to
the customer (+), the customer service that is provided (+) and the

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implementation of the trolley service which is convenient for the customer
(+).

Marketing and sales

The Tesco Clubcard gives discounts and provides loyalty to customers (+),
selling healthy and environmentally friendly products (+), and Tesco’s
advertisements and new policies on using recycled products to help Tesco
come “carbon free by 2050” (+).

Joint Ventures and mergers and

acquisitions
In 2008, Tesco made an agreement with the Royal Bank of Scotland to
buy 50% of their shareholding. This allowed Tesco to build up Tesco
Personal Finance. Tesco currently offer financial products such as home
insurance and a credit card. However, Tesco wishes to offer a full service
retail bank. The reason for wanting to embark on this new venture is
because owning its own bank would not just increase Tesco’s revenue, it
would also attract new customers and provide a further service for its
existing loyal customers, which other competitors do not offer

In 1999 a French hypermarket chain named “Carrefour” tried to enter the

Korean market but it failed. This was due to the fact that the Korean
population had a preference for domestic supermarket chains, which this
was not as the owners failed to localise the store.

Interestingly Tesco attempted to enter the South Korean market in 1999

as a joint venture with Samsung. It was named “Samsung Homeplus
Tesco” and was extremely successful due to the recognition by the
Koreans that it was a domestic retailer. By joining forces with a Korean
business Tesco was given an instant competitive advantage and the
opportunity to thrive: “it has now become one of Koreas leading retailers
and there are currently 30 hypermarkets and two super express stores”
(Kollewe, 2004).

Finally, in 2008 Tesco acquired a Korean supermarket chain named

Homever which was owned by the E-land group in Korea. Tesco paid £958
million to take over the 36 stores that the group owned (Walker, 2008).
The takeover will not only increase Tesco’s revenue, in a country that they

Page T e s c o R e p o r t
have already been successful in, but will also enable Tesco to gain
knowledge of the Far East and Asian markets through merging the two
companies, this hopefully should enable them to be just as successful
within these new markets.

PESTEL analysis for Tesco

Political
Due to operating in a global environment, Tesco is largely influenced by
the political and legislative conditions of these countries, as well as the
European Union enforcing governing rules. The government legislation for
employment encourages retailers to provide work for a variant of people,
ranging from flexible, lowered paid, and locally based jobs to highly
skilled, highly paid, and centrally-located jobs (Balchin, 1994). This piece
of legislation also allows for the various demographics to be given work
opportunities, such as students, senior citizens, disabled people, people
from various ethnic backgrounds, and working parents. This gives Tesco a
competitive advantage as it produces loyal employees.

Economical
The recession has caused the unemployment level in the United Kingdom
to soar over 28.93 million (Office for national statistics). As economical
factors are likely to influence demand, cost, price, and profits, these
figures should make Tesco’s management feel particularly apprehensive.
Although Tescos international business does bring in a high amount of
profit, they are still largely dependent on the UK market. If the
unemployment rates continue to soar, the slowdown of the UK food
market could have a severely detrimental effect on Tescos.

Social
British customers have become “one stop” shoppers. Due to this
movement, Tesco has been able to successfully diversify their company
into a range of different markets. One can now not only buy their weekly
shop but can purchase personal insurance, electronic goods, clothing, and
a range of other products from Tesco.com.

Page T e s c o R e p o r t
Technological
This particular variable of the macro-environment has helped to develop
many of Tesco’s products and has not only been indicative of the
company’s satisfaction but also that of the customer’s. Due to services
such as Tesco.com, the self checkout service and the Tesco Clubcard, the
customer satisfaction levels have increased due to more personalised
shopping, goods that are readily available, and convenience. However,
due to the modern use of technology, it does allow for job cuts as face to
face services have been replaced.

Environmental
Tesco has put in place measures to ensure that their company helps in
the fight to lower carbon emissions. Their challenge is to achieve a 30%
reduction of the carbon impact of the Tesco’s supply chain by 2020 and to
become a zero carbon business by 2050 (Tescoplc.com [Press release,
2009]). Implementations in the forms of using green clubcard points in
order to encourage environmentally friendly, carbon conscious
purchasing; the “buy one get one free later” scheme, that allows
customers to acquire their free product at a later date to reduce waste;
and are striving to reduce packaging, reduced carrier bag use, and
increase recycling, this year alone they have reduced carrier bag usage
by 53% (Tescopl.com [Press release, 2009]).

Legal
There are certain government legislatives and policies that Tescos have to
abide by and have a direct impact on their performance. Bodies such as
the Food Retailing Commission (FRC), who prevent companies from
demanding payments from suppliers and changing agreed prices without
notice. Government policies for monopoly and the reduction of the buyer’s
power can limit entry into the sector (Mintel report, 2004).

Competitors
The market leader of food retailers in UK is Tesco. It has 26.2% (including non-

retail is 31.5%) market share, 2,115 stores and £34,874 million sales (Mintel,

Food Retailing, 2008, details in Appendix 1). J Sainsbury which has 823 stores

and 13.5 (16.5) % market share is in the second position. The third one is Asda

Page T e s c o R e p o r t
group, and it gains 13.8(15.1) % market share with less than half of the

Sainsbury stores number. The forth player in food retailing market is Wm

Morrison Group which holds 9.5(11.7) % market share. “The top four account for

63% of all food retailers’ sales (after adjusting for fuel sales) and dominate the

market for main food shopping. (Mintel, Food Retailing, 2008)”

“British supermarkets are typically evaluated by potential customers by

two sets of criteria: the perceived price levels charged and the quality of

service offered interns of range of goods, quality of merchandise, opening

hours, and store environment (Bradley, 2003).”

Figure
Sainsbury
Perce
Perceived
Marks
Asda
Morrison
Tesco
High
Low
Aldi
Lidl 1: A hypothetical
& Market
PremiumSpencer
Discount
Middle Quality
Sector product positioning map for UK
of Store Offering
Sector
ived
supermarkets
Sector
Price(Adapted from Palmer, A. & Worthington, I., 1992, P15)
Level

Figure 1: Tesco’s main competitors adapted from Mintel report, 2009,

(see appendix 1).

Page T e s c o R e p o r t
Page T e s c o R e p o r t
As Tesco is in the middle of the position map, it has the opportunities to

expand its product line to meet the up-market needs, or to have some

discount products get the down-market interests, but the competition

level in this position is very high. It is necessary to look at how Tesco still

hold the No.1 position in UK food-retailing industry.

Market
Diversification
Product
International
Mar
The
The Product
UK
(Source:
Curr
New UK
Penetration
Development
Development
Jobber,
food
non-
Current
New Figure
food
non-
2007)
2 Ansoff Matrix for Tesco
retailing
food
kets
food
retailing
ent retailing
retailing
markets
markets
market
market

Figure 2: Ansoff matrix to analyse Tesco’s marketing strategy.

Page T e s c o R e p o r t
Tesco started in the UK food retailing market and the business is

maturing. “Sales density and market share growth are both slowing, and

UK space is becoming a smaller part of the whole (Leahy, 2008).”

AlthoughTesco will still plan to open more stroes in UK, “80% will open

outside of the UK in 2009 (Mintel, Food Retailing, 2008)”. The

opportunities for Tesco are: 1. Taking advantages of the food retailing

value chain to continue to grow internationall by market development,

and 2. Providing non-food products/services to the loyal customers in

food retailing area by product development.

Figure 3: Tesco’s sub-bran poisition in the United Kingdom.

Page T e s c o R e p o r t
.

C
961(200
Homepl
Extra
One
(Keys:
Non-
Express
Figure
Supermarke
512(-5)
177(15
448(10
Metr
174(4)
10(3)
Food The
3 Tesco
size ofSub-brand
the cycle stands
Positioning
for the in
store’s
UK size. The
) o ) t is the outlet number in UK. The number in the brackets
us
Stop
number
food
u
is the outlet number which has planned to open during the year
s
t2010.)
o
(Source: Mintel, Food Retailing, 2009, details in Appendix 3)
m
e
r
P
e
r
c
e
i
v
e
d
C
o
n
v
e
n
i
The above figure summaries the sub-brands of Tesco with two main
e
n
factors: the customer perceived convenience and the product range (Food
t
vs. Non-food). In order to hold and increase the market share, what Tesco

is trying to do is to to set a small number of big stores which could be the

Page T e s c o R e p o r t
best choice to purchase the products when the customer have enough

time. Meanwhile, there are more than one thousand express/One Stop

stores which could be convenient for the customers daily life purchase.

When considering the competitive advantages, our group uses Poter’s

“Five Forces” (1980) to analyze Tesco competition in the UK and

international markets. In the UK, Tesco bulits the barriers for new entrants

(high fixed cost and difficult to get suppliers), cooperates with local

suppliers (strong relationship with farmers), uses Clubcard for retaining

customers (Customer loyalty), and in the food retailing there is no specific

substitutes.

Competitive
Potential
Suppliers
Buyers
(Source: Entrants
Rivalryfrom
Adapted
Figure 4 Tesco
M.E.Porter,
in the UK
Competitive
Strategy, 1980)

Figure 4: Tesco’s competition in the United Kingdom.

Page T e s c o R e p o r t
(Source:
Threat
Competitive
Potential
Figure
Suppliers
Buyers
ofAdapted
substitutes
5Entrants
Tesco
Rivalry
from
in the
M.E.Porter,
international
Competitive
marketsStrategy,
1980)

In the international markets, the situation will be different. Tesco should

build relationship with the international suppliers, promote its brand to the

international customers, provide products differentiation to avoid the

threat from substitutes and potential entrants and compete with the

international competitors which may already have strong supplier chains.

Figure 5: Tesco internal markets competition.

Page T e s c o R e p o r t
Core competencies
There are two issues as the core competencies of Tesco. One is the
employees, and another is the customers. “The staffs determine the
competitiveness through the internal of the business, whereas the
customers determine the external environment the profitability of the
business” (Kotler and Keller, 2009). Especially, when the business is in the
downturn, Tesco needs to spend more time to do the research on how to
satisfy the customers better than its competitors’.

The ultimate goal of Tesco is to reduce the cost for the customers. Since
Asda enter the UK market with the introduction of parity strategy, the
main players in supermarkets has faced a fierce competition which based
on the low-cost strategy. At that period of time (1980s), some of the main
supermarkets had been replaced which was related to a low customer
loyalty. People had a wide range of choice with a cheaper price. Until the
Clubcard was established, customers have become more relevant to the
supermarket. Although a Clubcard itself does not create loyalty, it can be
a medium to produce the Tesco points (which can be accumulated and
exchange the goods/money within Tesco, source from: Assen, Van den
Berg, and Pietersma, 2009). Tesco notice that the total customer
satisfaction experience can create the generate loyalty towards ‘a pull
strategy’ which is better than a direct promotion that is based on a low-
cost products (a push strategy).

According to Tesco's annual report, “In the first 6 months of the club card
introduction, without any advertising case, Tesco have achieved about
17% of the “customer spontaneous usage.” Based on this research, it is
obviously to see that a Tesco Clubcard can not only enhance the
customers’ loyalties, but also can create a customer relationship
management (CRM) for Tesco. Tesco can get the information from CRM
and analyze it to find those most valuable customers. On one hand it can
reduce the cost and make Tesco to target more efficiently and effectively.
On the other hand this may improve the company's service quality and
customer satisfaction.

Club card activity is successful and remarkable. Customers like these

activities, as well as the store managers. It gives the opportunity to create

Page T e s c o R e p o r t
a communication channel for the managers and the customers sharing
knowledge. Tesco is trying to treat its customers as “shareholders”. 　　

In addition, Tesco must learn and adjust their marketing strategy to meet
their customers’ needs. That means if Tesco can notice the changing of
the customers’ needs more quick than its competitors. Their competitors
will lose their customers’ satisfaction and this is one of the most important
competencies of Tesco, especially the critical successful factor in UK.

Human Resource
Tescos distinctive strategic resources and assets can be found in its
employees. The HR department in Tescos has been strategically
integrated in the overall plans; management utilizes HR whenever they
are making decisions (Beardwell J. 2004). HR department helps in the
building of the company through the following: - creating new plans and
techniques to measure and reduce labour turnover. It has played a crucial
role in aiding diversification into new business sectors.
Their slogan ‘Every Little Helps’ is part of their ethos and is also
inculcated in the training programs offered to their employees
(Armstrong, M 2005)
Tescos focuses on high commitment through the HR department by
incorporating all employees; by discussing its strategic directions. The
major challenge to Tescos is ensuring that all employees are aware of the
roles assigned and how these various roles and actions can affect the ‘big
Tescos picture’ (Whitelock, N. 2003). As a result, training has increased
within the organization with high value placed on employees through the
offer of basic and extended training. (Beardwell J. 2004).
The increment in employee training within the organization is as a result
of HR adopting a proactive strategic role and not an administrative one.
The stance taken by HR is that by equipping the employees with the skills
that they need to work will in the long run lead to increased growth.
(Mullins, L. 2005)
Career development is also looked at. This is in light of the changing
employment market and employees feeling less secure in their jobs. A
disadvantage of this is that since these skills are transferrable, they could
in the long run be of benefit to their competitors. Though the merits of
training the employees outweigh the demerits, employee shift or

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movement should not be overlooked. (Marchington M & Wilkinson, A
1997)
In terms of sustainability, developing employees through T&D and
education are imperative because these are the most important factors in
determining long-term business profitability. This can also be achieved by
fully exploiting the wealth of knowledge within the organization; its
employees. (Armstrong, M 2005)
It aims to integrate learning as part of it business culture because learning
is seen as an integral way of being flexible which has a long term
organizational value thus maintaining its huge step ahead of its
competition.
In conclusion, Tescos integrating HR as part of its strategy and focusing
on the training of its employees has made them feel a part of the overall
strategy which in turn has lead to higher employee commitment. This long
run effect gives Tescos the added value it needs in the competitive retail
market.

Recommendations
There are a number of recommendations that can be specified which
could enable Tesco to grow into more dominant brand and have even
more success both locally and internationally.

Tesco’s growth largely depends on its non-food products, these account

for over 25% of its sales (not including petrol), and it is these areas that
are the key to Tesco’s future success. The main emphasis should now be
on developing new and innovative strategies so that these areas can
blossom.

Already it has been noted that Tesco beauty section is only second to
boots, and their skin care range is the fastest growing range in all
supermarkets. However, they do face stiff competition from Asda’s and
Sainsbury’s clothing range. If Tesco wishes to be viewed as the number
one “one stop shop” then more efforts need to be placed into the non-
food areas otherwise customers shall use a different supermarket that do
satisfy all their consumer needs.

Currently there is a serious cause for concern that our carbon foot print
needs to be decreased drastically. All supermarkets have a high level of
waste; cardboard, plastics, paper. This problem needs to be address,
although Tesco has stated that they wish to be carbon free by 2050, they

Page T e s c o R e p o r t
need to ensure that this dream becomes a realisation. They can reduce
these variables by having less packaging on products, promoting
recycling, and disposing with plastic bags all together and instead
implement long life bags that the customer brings to the store when they
visit.

Tesco have been extremely successful in many foreign markets through

joint ventures and mergers and acquisitions. They have acquired a lot of
useful knowledge about the Korean market and now hopefully will flourish
in the Asian and Far East market. This shall only happen though if they
bring not only their own values but adopt the ones of the country that
they are entering.

Finally, further steps need to be taken into promoting Tesco’s banking

service. If this venture does go ahead they will be an unstoppable force.

Conclusion
Tesco is a remarkable chain. Although it is leading in its market and is
attempting to conquer the international world, it is the values that they
uphold that are second to none. It is the emphasis on “its people” that
have allowed them to be so successful; by continuously trying to provide
better and faster services of a high quality, and investing time and money
in its employees is why they have so many loyal customers.

Tescos are known for innovation, they have now become a one stop store,
not only can one acquire the weekly shop but now can obtain insurance,
home furnishing, clothing, and electrical goods. It is for reasons such as
these that they have always been able to stay one step ahead of their
competitors.

Word count – 3300

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References
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Management A Contemporary Approach Prentice Hall, Harlow.

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Bradley, F. (2003) “Building competitive brands”, Strategic Marketing in
the customer driven organization, 1st Edition, London: John Wiley &
Sons Ltd Press

Kotler, P and Keller, K., L. (2009) Marketing Management: Analysis,

Planning, and Control, Prentice-Hall.

Kollewe, J. (2004) cited at

http://www.independent.co.uk/news/business/news/tesco-raises-
stake-in-korean-venture-544724.html. Assessed by 28 Nov, 2009

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http://0-
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academic.mintel.com.unicat.bangor.ac.uk/sinatra/oxygen_academic/search_results/show&/display/id
=395621/display/id=280627/display/id=395621. Assessed 4th Dec, 2009.

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Prentice Hall, Pearson Education, Edinburgh
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http://www.statistics.gov.uk/cci/nugget.asp?ID=12. Found on the
27/22/09.

Palmer, A. & Worthington, I. (1992) “Marketing: an overview”, The

Business and Marketing Environment, 1st Edition, London: McGraw
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Porter, M., E (1980) cited in Johnson, G. & Scholes, K. (1997) Exploring

Corporate Strategy, 4th Edition, London: Prentice Hall Press.

Tesco community plan cited in

Page T e s c o R e p o r t
 http://www.tescoplc.com/plc/corporate_responsibility_09/approach/c
r_strategy/community_plan/.

Tesco core UK cited in

http://www.tescoplc.com/plc/about_us/strategy/coreuk/.

Tesco corporate strategy cited in

http://www.tescoplc.com/plc/corporate_responsibility_09/approach/c
r_strategy/.

Tesco history cited at

http://www.tescoplc.com/plc/about_us/tesco_story/#.

Tesco long term strategy cited in

http://www.tescoplc.com/annualreport09/businessreview/long_term_
strategy/.

Tesco press release. (2009) Tesco introduces “buy one get one free- later”
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http://www.tescoplc.com/plc/media/pr/pr2009/2009-10-16a/.

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http://www.tescoplc.com/plc/media/pr/pr2009/2009-10-16/.

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Appendices

Appendix 1: Retail Competitors Analysis by Mintel.

Page T e s c o R e p o r t
Tesco The market leader by far and with an outstanding record both in the
UK and the majority of its international ventures. But there are
concerns that it is faltering in the UK.

Sainsbury’s In a well-established recovery phase. Has been an excellent performer

during the early stages of the recession.

Asda Obsessed with being the price leader, and that is what consumers
seem to value it for. But margins have been falling, indicating the
underlying cost of the strategy.

Wm After the debacle of the Safeway acquisition, a surprising winner. But

Morrison Morrisons has been the outstanding performer among the market
leaders of the recession so far.

Co- Could suffer indigestion following the Somerfield and United Coop
operative acquisitions. But current performance is impressive and the new
Group format stores are the best things we have seen from any Co-op in
living memory.

M&S Under severe pressure in the recession. Consumers agree that it is

good value, but at the moment they are saving money. The challenge
is to survive without undermining the brand.

Waitrose Solid performer, even in the recession. The launch of the Essentials
range has been a great success.

Aldi/Lidl Clear winners in the recession, but we doubt if they will fare so well in
the upturn. But that is a long way off yet. The next couple of years
should be excellent.

Iceland Continues its impressive recovery and it seems to be the store of

choice for the less affluent elements of society.

Page T e s c o R e p o r t
Appendix 2: Leading UK food retailers, market shares, 2008

Market Market share (incl.

share non-retail)

% %

1 Tesco (UK) 26.2 31.5

2 J Sainsbury (UK) 13.5 16.1

3 Asda Group 13.8 15.1

4 Wm Morrison Group 9.5 11.7

5 Co-operative Group 7.2

6 Marks & Spencer (food) 3.8

7 Waitrose 3.4

8 Spar UK 2.3

9 Londis/Budgens 1.9
(Musgrave)

1 Iceland/Whittard 1.6
0 (Baugur) (a)

1 Lidl (UK) 1.4

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 1

1 Aldi Stores (UK) 1.4

2

1 Costcutter Supermarkets 1.2

3 Group

1 Premier 1.1
4

1 Netto Food stores 0.6

5

Total 89.6

(Source: Food Retailing 2008, Mintel Website)

Appendix 3: Tesco UK store formats, 2008/09

Page T e s c o R e p o r t
 Typical Type of Outlet Offer
size outlet numbers
(planned
openings in
2009/10)

Core
formats:

Tesco Up to Hypermarke 177 (15) Full food offer and wide

Extra 10,000m t non-food
2

Tesco 2,700- Superstore 448 (10) Full food offer, non-food

Superstor 3,700m2 depending on available
e space

Tesco 1,000m2 City centre 174 (4) Food, with emphasis on

Metro convenience and lunch
time trade

Tesco <279m2 Convenienc 961 (200) Top-up, convenience.

Express e Meets legal size limit to
allow all day Sunday
opening.

Homeplus 3,000m2 Non-food 10 (3) Experimental home format

superstore

One Stop <279m2 Convenienc 512 (-5) Legacy of the T&S stores
e acquisition. C-stores with
insufficient footfall to
convert to Express.

(Note: Many of the new Extras are extensions of Tesco superstores)

(Source: Food Retailing 2009, Mintel Website)

Page T e s c o R e p o r t