If Tesco were a nation, it would have the 74th biggest economy
If Tesco were a nation, it would have the 74th biggest economy in the world. Tesco has grown from a single market stall to become Britain's retail king. Of every £8 spent by British shoppers in any shop, anywhere, £1 of it will be making its way to Tesco. Tesco will sell £30 billion of goods this year in Britain. Tesco is the biggest seller of toiletries by volume, is in the top three for music sales, and its clothes lines are the fastest-growing in the country. The retailer also has 4.6 million personal finance customers, 650,000 phone and internet users; and it claims to be the world's biggest e-supermarket.
Source: Observer 26/12/2004
Tesco and Asda buy Woolies ops
Tesco and Asda have bought seven out-of-town Big W stores from department store Woolworths. The deal, thought to be worth hundreds of millions of pounds, saw the only Big W stores of the 21-store portfolio with planning permission split between the supermarket giants. Asda is thought have spent around £50 million on one site alone and is in talks about acquiring one further outlet. Tesco is also set to buy Big W stores in Cornwall and Redruth and is in discussions over three further outlets.
The sell off is part of a review called by Woolworths' Sir Geoff Mulcahy and will see the remaining 14 stores rebranded under the Woolworths logo and reduced in size.
Source: Sunday Telegraph 09/01/2005
Tesco South Korea expansion
Tesco has bought a further 12 stores in South Korea, increasing its foothold in the country by more than 33% and extending its South Korean Homeplus estate to 44 stores. The stores are being sold by Aram Mart, which operates in Pusan. South Korea and Thailand are the group's most important markets in Asia. It operates its stores in Korea via a joint venture with Samsung Corporation, a local conglomerate.
Tesco was the first foreign partner in a retail joint venture in South Korea, since which it has struck a deal take its holding in Homeplus to 99% over the next six years - a move which will cost about £200 million and extends the original five-year agreement.
Source: Independent 20/01/2005
Asda reports record Christmas
Supermarket giant Asda has reported a very strong Christmas trading period, completing 18.3 million transactions in the week prior to Christmas Day. 249 of Asda's 271 stores broke the £1 million sales barrier over the seven-day period, and 38 stores reached or surpassed sales of £2.5 million, 16 more than in 2003.
Source: Mintel 31/12/2004
Tesco unveils £80m price cuts
Another supermarket price war is rumoured to be in the offing, as Tesco announced it is set to slash prices across its stores to the tune of £80 million. The prices of 500 products are to be cut, with the sale focussing on everyday goods such as meat, ready meals, frozen foods and health and beauty products.
Source: Mintel 31/12/2004
Tesco under pressure to rethink post office closures
Tesco has been criticised by local residents over plans to close one fifth of the post office it acquired when it took over the T&S Stores convenience chain two years ago.
Tesco is planning to close the post office in a One Stop Shop in Eastbourne to convert the store into a Tesco Express, but some 4,000 people have written to the company asking them not to shut it.
Source: Independent 30/12/2004
Tesco Mobile rings up success
Tesco has announced that, following a surge in sales in the run up to Christmas, its Tesco Mobile phone business has signed up its 500,000th customer, meaning that Tesco now has more mobile phone subscribers than BT.
Source: Mintel 30/12/2004
Tesco to expand in China
Tesco is set to drive its presence in the Chinese market in the new year, following its £140 million acquisition of a 50% stake in hypermarket chain Hymall in July 2004. Hymall, which is 50%-owned by Taiwanese food group Ting Hsin, will open a further 10 hypermarkets during 2005.
Source: Mintel 29/12/2004
Sainsbury jobs to go
Sainsbury is expected to announce a round of job cuts at its head office as it implements cost-cutting plans detailed in its October business review. The estimated number of jobs to go is 750.
Source: Grocer 08/01/2005