The making of a global player

27 May 2005



The Tesco juggernaut shows no sign of slowing down


Turning a £2bn profit for twelve months' work is pretty good going by any standards, not least when your origins are rooted in an East End market stall. Napoleon's barbed slight about our predilection for playing shop, notwithstanding Tesco's latest set of trading returns, is anything but parochial. And with their profile and customer base as well established in Prague as in Preston, we can genuinely boast a world-class shopkeeper.

Head honcho Sir Terry Leahy might demur that success is a matter of service, and all that implies viz. competitive pricing, rather than size. To an extent that's true. But clout is ultimately what counts: rarely a God-given gift; more earned by dint of blood, sweat and tears.

Quite whose is a question guaranteed to raise sensitivities across the supply chain. Nevertheless, in collaring one third of all supermarket takings and over £1 in every eight spent on the High Street, Tesco's achievement is remarkable.

Nobody's exactly being forced to shop there; the bottom line is that we do it because it's so damn convenient. There may be a growing collective hankering for some rosy-cheeked Mom & Pop familiarity at the cheese counter, but life isn't an Enid Blyton adventure anymore. Not that there were too many pickings for the packaging industry in that scenario either. Lashings of ginger beer come in a multi-pack with the slimmest of margins these days.

Those with less well-endowed bank balances may carp, but this is manifestly a retailer that has shown itself adept in staying one step ahead. With the stuffing knocked out of the competition, most of the rest are looking decidedly shop-worn by comparison.

Meanwhile, the juggernaut trundles on. Barring a lucky sling-shot from some latter-day stripling, the inevitable day of reckoning will come not because the Cheshunt United galacticos have unaccountably lost their touch, but due to the great British public's innate distrust of an excess of success and propensity for taking comfort in mediocrity.

By the time consumer opinion has deemed Tesco has become too big for its boots, however, chances are the UK's top retailer will have long since completed its metamorphosis as a global player. What price Tesco versus Wal-Mart in the World Cup 2010?


Des King Des King


Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.