It wasn’t long ago when Tesco not only ruled the supermarket industry but the back pockets of Britain with one of every £8 spent was spent in their empire which expanded outside of grocery. The British-based brand have grown a lot since the humble beginnings of a market stall in Hertfordshire in 1919 becoming the second biggest retailer in the world with stores across 12 countries.
From a fruit and veg stall you will now find electricals, furniture, books in their stores, they own petrol stations, have their own clothing line and phone network as well as offering insurance and financial services. Anything you will ever want, Tesco will probably sell it.
The dominant brand, which has had its criticism for being aggressive in a competitive market which they controlled have gone into meltdown. It’s like the bully in the playground who punched above his weight and got knocked down. Tesco failed to succeed in America, held back from taking over in the Far East and found themselves battling with Sainsbury’s, Morrisons and Asda for a dwindling market share as Aldi and Lidl captured shoppers on a budget whilst Waitrose and M&S provided for the affluent. For the first time Tesco were lost, after years of winning price wars the supermarket no longer offered the cheapest electricals, books or whatever else they could fit on the shelves at their humongous stores as the internet undercut the undercutters.
Shopping cultures have changed, the Friday big shop isn’t the ‘done thing’ any more, habits are dictated by busy lifestyles, customers instead nipped into shops, Tesco moved with the trends by opening Tesco Metro and Tesco Express stores where ever they could. No wonder so much of the British publics money is spent in Tesco, they are everywhere.
Yesterday the super-brand were in crisis following reports of major miscalculations of their profits leading to £2 billion being wiped away from its value and share prices dramatically dropping, the City has lost faith in the market leader, the public were beginning to as sales have been falling, news of unethical dealings could see Tesco lose the top spot of the UK’s favourite supermarket.
This news shows how running a business poorly can affect it massively.
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