Tesco PLC (LSE: TSCO) is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart).
City experts say Tesco has a battle on its hands after the supermarket group reported its first fall in profits in 20 years. One of the worrying signs from this update is the extent to which some parts of the international business have deteriorated: growth in Asia has slowed substantially while European sales have declined. While there are understandable reasons for this, it does suggest that Tesco is now a company fighting battles on many fronts. For a management team that has been weakened by departures, this is a highly uncomfortable position and is one that, if not addressed, could leave resource, talent, investment and focus stretched too thinly.
The boss of Tesco's UK operation, Richard Brasher, is stepping down. His departure, after only a year in the job, follows a disappointing Christmas sales period, a fall in market share and a profit warning in January. The supermarket chain's group chief executive, Philip Clarke, will take on responsibility for the UK business. Tesco has failed to revive sales despite spending £500m on price cuts and is now planning a major revamp of its stores.
Always looking to the future, the issue of sustainability is a big part of our business strategy. From reducing our carbon footprint by delivering via train rather than motorway, to saving 130,000 tonnes of cardboard through reusable trays, we're setting the standard for future supermarkets. Playing a positive role in the community is just as important. Last year we raised over £6.1 million for our charity of the year, Marie Curie Cancer Care, and this year we're going all out for our selected charity, the Muscular Dystrophy Campaign. Our Computer for Schools programme is in its 17th year, which, to date, has helped donate £118million worth of equipment to over 30,000 schools.
The Tesco Values sit at the heart of our business and help us deliver our core purpose – to create value for customers to earn their lifetime loyalty.
No one tries harder for customers:
-Be first to meet their needs.
-Act responsibly for our communities.
Treat people how we like to be treated:
-Work as a team.
-Trust and respect each other.
-Listen, support and say thank you.
-Share knowledge and experience.
We have always been committed to providing the very best shopping experience. Today we continue to focus on doing the right thing for our customers, colleagues and the communities we serve. Our vision is for Tesco to be highly valued by the customers we serve, the communities in which we operate, our loyal and committed staff and our shareholders; to be a growth company; a modern and innovative company and winning locally, applying our skills globally.
Tesco's head offices are situated along an industrial estate in Cheshunt. Its a far cry from the Mayfair or Park Lane addresses of many of the other FTSE 100 companies Corporate Watch monitors. In a way, this is reflective of Terry Leahy and his management style. It is all very ordinary. No fuss or fanfare, no pomposity or conspicuous consumption.Around 1000 support staff work in Cheshunt for the massive multinational.
Tesco started life as a one-man operation, when London businessman Jack Cohen bought a shipment of tea from a supplier named TE Stockwell. Using those initial letters and the first two from his surname, he created a company name that has grown into one of the UK’s best known brands. Tesco has since extended its range of products and services far beyond those of a market stall, and first floated on the stock exchange in 1949. The store with the slogan, “Every little helps”, is the largest retailer in Britain by both global sales and domestic market share.
The company recorded revenues of £60,931 million (approximately $94,193.2 million) during the financial year ended February 2011 (FY2011), an increase of 7.1% over FY2010. The operating profit of the company was £3,811 million (approximately $5,891.4 million) in FY2011, an increase of 10.2% over FY2010. The net profit was £2,655 million (approximately $4,104.4 million) in FY2011, an increase of 14.1% over FY2010.
Tesco PLC is engaged in the retailing and associated activities in the United Kingdom, the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Malaysia, Japan and China. Its Rest of Europe reporting segment includes the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia and Turkey. The Asia reporting segment includes Thailand, South Korea, Malaysia, China and Japan.
Tesco PLC, together with its subsidiaries, operates as a grocery retailer. It operates stores that primarily offer food, clothing, and electrical products, as well as general merchandise. The company also provides retail banking, financial, and insurance services. In addition, it engages in data analysis, distribution, and property operations.