Datamonitor's Comprehensive Report on Tesco PLC Company Profile

This Datamonitor report provides a comprehensive company profile of Tesco PLC, one of the largest food retailers globally. The report details Tesco's business description, history, key employees, major products and services, and a thorough SWOT analysis. It examines the company's operations in the UK, Europe, and Asia, highlighting key facts such as revenue, financial year end, and employee numbers. The report also includes an analysis of Tesco's products and services, competitor information, and company view, along with locations, subsidiaries, and recent company news. This profile offers valuable insights into Tesco's market position, business strategies, and financial performance, making it a useful resource for business analysis and understanding the retail industry. This report is available on Desklib, a platform for students to access past papers and solved assignments.

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Tesco PLC
Company Profile
Reference Code: 1674
Publication Date: Aug 2004

Tesco PLC
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Tesco PLC
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TESCO PLC
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview ....................................................... 4
Key Facts........................................................................ 4
Business Description.................................................... 5
History ............................................................................ 6
Key Employees .............................................................. 7
Major Products And Services..................................... 12
Products And Services Analysis................................ 13
SWOT Analysis ............................................................ 14
Top Competitors .......................................................... 19
Company View ............................................................. 20
Locations and Subsidiaries........................................ 22
Latest Company Comment ......................................... 23
Latest Company News ................................................ 31

Tesco PLC
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TESCO PLC
Company Overview
COMPANY OVERVIEW
Tesco is the largest food retailer in UK, operating around 2,318 stores worldwide.
Tesco operates around 1,878 stores throughout the UK, and also operates stores in
the rest of Europe and Asia. Tesco.com is a wholly-owned subsidiary offering a
complete online service, including tescodirect.com and tesco.net. The company also
offers a range of both online and offline personal finance services. Tesco is
headquartered in Hertfordshire, UK.
For the year ended February 2004 Tesco PLC achieved revenues that totaled
£33,557 million, an increase of 18.7% against the previous years revenues that were
£28,280 million.
KEY FACTS
Head Office Tesco PLC
Tesco House
Delamare Road
Cheshunt
Hertfordshire
EN8 9SL
United Kingdom
Phone [phone]
Fax [phone]
Web Address http://www.tesco.co.uk
Revenues/turnover (£
Mn)
33557
Financial Year End February
Employees 326000
SIC Codes SIC 5411 Grocery Stores
NAICS Codes 44511, 44512, 44711, 45291
London Ticker TSCO

Tesco PLC
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TESCO PLC
Business Description
BUSINESS DESCRIPTION
Tesco is one of the largest food retailers in the world, operating around 2,318 stores
and employing over 326,000 people.
As well as operating in the UK, it has stores in the rest of Europe and Asia. It also
provides online services through its subsidiary, Tesco.com. The UK is the company’s
largest market operating under four banners: Extra, Superstore, Metro and Express.
Tesco sells approximately 40,000 food products in its superstores, as well as clothing
and other non-food lines. The company’s own-label products are at three levels,
value, normal and finest. Own brand accounts for approximately 50% of sales.
As well as convenience produce, many stores have gas stations. The company has
become one of Britain’s largest petrol independent retailers. Other retailing services
offered in the UK include Tesco Personal Finance and Tesco.com. Tesco Personal
Finance is a joint venture with the Royal Bank of Scotland. It has over 3.4 million
customers, and provides various financial products and services.
The company has operations in the rest of Europe, including the Republic of Ireland,
Hungary, Poland, Czech Republic and Slovakia.
Tesco’s Republic of Ireland business operates in the region of 82 stores, and around
60 stores in the Hungarian market. Tesco’s Polish operations include former HIT
operated stores. It operates around 66 hypermarkets and supermarkets in this
country. In the Czech Republic and Slovakian markets, Tesco operates 22 and 23
hypermarkets respectively.
Tesco also operates stores in Asia, including Thailand, South Korea, Malaysia and
Taiwan. The company operates 64 stores in Thailand and 28 stores in the South
Korean Market, while in the Taiwanese and Malaysian markets it has three stores in
each nation.

Tesco PLC
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TESCO PLC
History
HISTORY
Tesco was originated in the markets of London’s East End, where in 1914, war
veteran Jack Cohen began to sell groceries. The brand name of Tesco first appeared
on packets of tea in the 1920s.
Tesco was an amalgamation of the initials of T.E. Stockwell, a partner in the firm of tea
suppliers, and the first two letters of Cohen. The first Tesco store was founded in 1929
in Burnt Oak, Edgeware.
Following the success of self service stores in the US, Mr. Cohen opened the first
Tesco self-service store in St. Albans in 1948. Gradually the business expanded from
stores to supermarkets, and by the early 1960s, Tesco had become a familiar
household name, selling household goods and clothing.
In 1974, the company set up petrol stations at its major sites, selling fuel at
competitive prices. In 1979, the company’s annual turnover reached £1 billion for the
first time.
Throughout the 1990s, Tesco expanded even further, and continued its international
expansion. In response to a growing Eastern European market, Tesco opened stores
in Poland, Hungary, Slovakia and the Czech Republic. Tesco also expanded into
Taiwan, Thailand and South Korea.
The company purchased the UK-based T&S, a convenience retailer, while in Poland it
bought HIT, a hypermarket operator, in 2002.
In November 2003, the company purchased the small Turkish hypermarket chain,
Kipa. The chain operated five hypermarkets in the Aegean region with reported sales
in 2002 of £124 million, pre tax profit of £4.7 million and over 1,500 employees.
In early 2004, the company announced that it was purchasing the family-run chain,
Adminstore, which operates the Europa, Harts and Cullens grocery outlets in the
London area, for £53.7 million.
In April 2004, Tesco faced a hurdle in its acquisition of Adminstore, even though the
Office of Fair Trading (OFT) cleared its bid, as the Federation of Wholesale
Distributors (FWD) attempted to block the deal. The FWD argue that the OFT’s
decision was flawed since the acquisition would make it virtually impossible for
independent retailers to open new shops in central London.

Tesco PLC
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TESCO PLC
Key Employees
KEY EMPLOYEES
Name Job Title Board Compensation
David Reid Chairman Executive Board
Sir Terry Leahy CEO Executive Board
Richard Brasher Commercial and Trading
Director
Executive Board
Philip Clarke International and IT Director Executive Board
Andrew Higginson Finance and Strategy Direc-
tor
Executive Board
David Potts Retail and Logistics Director Executive Board
Tim Mason Marketing, Ecommerce,
Property and Republic of Ire-
land Director
Executive Board
Veronique Morali Non-Executive Director Non Executive Board
Rodney Chase Deputy Chirman and Senior
Non-Executive
Non Executive Board
Charles Allen CBE Non-Executive Director Non Executive Board
E. Mervyn Davies Non-Executive Director Non Executive Board
Dr. Harold Einsmann Non-Executive Director Non Executive Board
Ken Hydon Non-Executive Director Non Executive Board
Graham Pimlott Non-Executive Director Non Executive Board
Lucy Neville-Rolfe Company Secretary Senior Management

Tesco PLC
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TESCO PLC
Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
David Reid
Board: Executive Board
Job Title: Chairman
Since: 1985
Age: 57
David Reid became non-executive chairman in April 2004. Prior to his appointment he
was deputy chairman of Tesco PLC and served on the Tesco board since 1985.
Sir Terry Leahy
Board: Executive Board
Job Title: CEO
Since: 1979
Age: 48
Terry Leahy became CEO in 1997. Joining Tesco in 1979, he held a number of
marketing and commercial positions prior to being appointed to the board of Tesco
PLC in 1992.
Richard Brasher
Board: Executive Board
Job Title: Commercial and Trading Director
Since: 1986
Age: 42
Richard Brasher was appointed to the board in March 2004. He joined Tesco in 1986.
He has held a number of marketing, commercial and store operations positions, most
recently non-food commercial director.
Philip Clarke
Board: Executive Board
Job Title: International and IT Director
Since: 1998
Age: 43

Tesco PLC
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TESCO PLC
Key Employee Biographies
Philip Clarke was appointed to the board in 1998. Prior to his appointment he held a
number of roles in store operations, commercial and marketing.
Andrew Higginson
Board: Executive Board
Job Title: Finance and Strategy Director
Since: 1997
Age: 46
Andrew Higginson was appointed to the board in 1997. He is a member of the 100
group of finance directors, chairman of Tesco personal finance and non-executive
director of C & J Clark Limited.
David Potts
Board: Executive Board
Job Title: Retail and Logistics Director
Since: 1998
Age: 46
David Potts was appointed to the board in 1998. He joined Tesco in 1973 and has
held a number of store and head office positions. From 1997 he directed the
integration of our businesses in Northern Ireland and the Republic of Ireland before
returning to the UK in his current role in July 2000.
Veronique Morali
Board: Non Executive Board
Job Title: Non-Executive Director
Since: 2000
Age: 45
Veronique Morali was appointed a non-executive director in 2000. She is COO and
director of Fimalac.
Rodney Chase
Board: Non Executive Board
Job Title: Deputy Chirman and Senior Non-Executive
Since: 2002
Age: 60

Tesco PLC
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TESCO PLC
Key Employee Biographies
Rodney Chase was appointed a non-executive director in 2002. He is also a non-
executive director of Diageo plc and Computer Sciences Corporation.
Charles Allen CBE
Board: Non Executive Board
Job Title: Non-Executive Director
Since: 1999
Age: 47
Charles Allen was appointed a non-executive director in 1999. He is CEO of ITV.
E. Mervyn Davies
Board: Non Executive Board
Job Title: Non-Executive Director
Since: 2003
Age: 51
Mervyn Davies was appointed a non-executive director in 2003. He is group CEO of
Standard Chartered.
Dr. Harold Einsmann
Board: Non Executive Board
Job Title: Non-Executive Director
Since: 1999
Age: 70
Dr. Harald Einsmann was appointed a non-executive director in 1999. He is a non-
executive director of EMI Group, is on the board of Stora Enso Oyj, part of the
Wallenberg Group and is a director of British American Tobacco.
Ken Hydon
Board: Non Executive Board
Job Title: Non-Executive Director
Since: 2004
Age: 59
Ken Hydon was appointed a non-executive director in 2004. He is the financial
director of Vodafone Group, a member of the board of representatives of the Verizon

Tesco PLC
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TESCO PLC
Key Employee Biographies
Partnership in the USA and a non-executive director of
Reckitt Benckiser.
Graham Pimlott
Board: Non Executive Board
Job Title: Non-Executive Director
Since: 1993
Age: 54
Graham Pimlott was appointed a non-executive director in 1993. He is a non-
executive director of Provident Financial and chairman of Export Credit Guarantee
Department. He is deputy chairman of Hammerson.
Lucy Neville-Rolfe
Board: Senior Management
Job Title: Company Secretary
Since: 2004
Age: 47
Lucy Neville-Rolfe was appointed company secretary in March 2004 in addition to her
role as group corporate affairs director. She joined Tesco in 1997 from the cabinet
office and is non-executive director of the foreign office and deputy chair of the British
Retail Consortium.

Tesco PLC
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TESCO PLC
Major Products And Services
MAJOR PRODUCTS AND SERVICES
Tesco is the largest food retailer in UK, operating around 2,318 stores worldwide. Its
products and services include:
Store types:
Extra
Superstore
Metro
Express
Tesco.com
Store offerings:
Food Retail
Non-Food Retail
Petrol Stations
Home Living Range
Tesco Personal Finance:
Life Insurance
Pet Insurance
Home Insurance
Travel Insurance
Motor Insurance
Savings Accounts
Personal Loans
Secure Investment Bonds
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