TESCO and ALDI: A Comparative Analysis of UK Retail Sector Performance

This report provides a detailed analysis of TESCO and ALDI within the UK retail sector. It examines their financial performance, including sales figures and market share, highlighting the competitive landscape and key trends. The report includes a SWOT analysis of TESCO, identifying its strengths, weaknesses, opportunities, and threats. It also discusses strategies for TESCO to regain market share and improve profit performance, such as pricing strategies. The conclusion emphasizes the importance of regular SWOT analysis for businesses to identify areas for improvement and implement effective strategies. References are provided to support the analysis and findings presented in the report.

Introduction
Supermarket sector of United Kingdom holed most of the companies
within it such and TESCO, ALDI and many more. They play
important role in development of economy as well as also serving
daily consumable products and services to customers. This report is
based on TESCO and ALDI which is retail sector organisations of
UK.

Current trends in UK higher education sector
Physical stores go digital – Technology advances are also getting
change which means how people shop for groceries in store.
Finding particular product in store become difficult as in this
technology play important role and it become easy to find specific
item online as it is easy task.

Tesco performed since October 2015
2015 2016 2017 2018 2019
Financial
Statistics (£m)
UK & ROI 38,228 37,189 37,692 38,656 44,883
Central
Europe
6,186 5,268 5,977 6,343 6,030
Asia 4,492 4,447 5,186 4,947 4,873
TESCO Bank 947 955 1,012 1,047 1,097
Group sales 49,853 47,859 49,867 50,998 56,883

Current financial performance of Aldi and Lidl
Aldi – Aldi is the only grocer who recorded double digit sales growth
within last month as well as bringing it even closer for overtaking
market share of Morrisons as per latest data. Respective
organisation is now 2.3 percent away from taking big 4 status as
well as overtaking Morrison as it have market share of 10.3 percent.

SWOT analysis of LSST
Strengths:
There are numerous awards which TESCO has
won for its retail excellence, customer service
as well as overall shopping experience
(Tirawatnapong and Fernando, 2019).
Moreover, TESCO is considering as one of the
largest and profitable supermarket and retail
formats in world, which several competitors
have tried to emulate.

Recommendation on how Tesco can regain
market share and improve profit performance
By dropping price company can grab large number of customers from
market area and it result in advantages for higher market share. But
result in cost with lower margin per unit as well as this strategy will
be suitable for large organisations which have high economies of
scale that allow them to operate at lower marginal cost than their
competitors and make it possible that they can operate at low cost if
needed. Through such strategies TESCO can gain high market share
as well as can increase profitability.

Conclusion
After going through entire discussion it has been identified that, an
business firm have to conduct SWOT analysis on regular basis as it
help in identifying their strength, weakness, opportunity and threats.
In addition to this, company can regain their market share as well as
improve profit performance by implementing several strategies
within their working.

References
Burgess, J., Cameron, R., Dhakal, S. and Brown, K., 2017.
Introduction: Applicant work-readiness and graduate employability
challenges in the Asia Pacific. In Transitions from Education to
Work (pp. 3-15). Routledge.
Tirawatnapong, R. and Fernando, M., 2019. Factors Influencing
Bangkok People Purchase Intention towards Tesco Lotus House
Brand Products. International Research E-Journal on Business and
Economics, 4(2), pp.15-29.