Abstract

Tesco, the UK's leading grocery chain, was also the biggest on-line grocer in the world. Tesco had attracted huge attention at a time when most retailers had failed to establish themselves outside their home markets and struggled in their on-line forays. In 2002, Tesco was the ninth largest retailer in the world and the third most globalised retail company (along with Wal-Mart) after Ahold and Carrefour. Tesco's strong focus on operational efficiency and productivity gains had enabled it to keep prices low. Tesco had been a successful globaliser. Its Internet business had also been doing well. Despite this impressive record, Tesco still faced major challenges. The UK retailer was small compared with the likes of Carrefour and Wal-Mart. Tesco also had to invest substantially in both hardware and software to strengthen its competitive position in the on-line business. This case illustrates the challenges retailers face in managing rapid growth and globalisation.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Tesco, Grocery chain, Carrefour, Wal-Mart, Ahold, TE Stockwell, Cohen, Hypermarket, Superstores, Tesco Express, Globalisation at Tesco, Web initiatives, J Sainsbury, On-line grocery business, Ninth largest retailer