Total Sales
Group sales, 57.7 billion pounds (excluding Value Added Tax and fuel) in fiscal 2023 (ended Feb. 25, 2023)
Total Stores
4,859 stores worldwide; 3,712 stores in the U.K.
Key Facts
- Operates across five European markets (U.K., Republic of Ireland, Hungary, Slovakia and the Czech Republic)
- Employs more than 330,000
- Holds nearly 37% of the U.K. online grocery market share, according to Kantar
- First U.K. retailer to ban plastic wet wipes
- Fulfills more than 1.27 million online orders weekly
- Boasts more than 20 million Tesco Clubcard loyalty program members
- Delivery fleet includes nearly 300 electric vans
- Has 2,500 customer EV charging stations at 600 stores
- Voted Britain’s favorite supermarket for the past eight years, according to the Grocer Gold Awards.
Key Executives
- Group Chief Executive Officer: Ken Murphy
- Chief Financial Officer: Imran Nawaz
- CEO, Republic of Ireland: Natasha Adams
- Chief Customer Officer: Alessandra Bellini
- Chief Technology Officer: Guus Dekkers
- Group Communications Director: Christine Hefferman
- Chief Executive, Tesco Bank: Gerry Mallon
- Chief Product Officer: Ashwin Prasad
- CEO, Central Europe, Tesco: Matt Simister
- CEO, U.K. and ROI: Jason Tarry (until March 2024)
- CEO, U.K. and ROI: Matthew Barnes (effective March 1, 2024)
- Chief People Officer: Emma Taylor
- CEO, Booker Wholesale Group: Andrew Yaxley
- CEO, Tesco Business Solutions: Sumit Mitra
Market Position and Strategy Overview
Market Position and Strategy Overview
Owned by the family-owned shareholding company Tesco Group, Tesco is a British grocery retailer with headquarters in the United Kingdom. It was founded in 1919, beginning as a market stall in London’s East End. Today the retailer operates 4,859 multi-format stores in five markets, broken down as follows:
- 3,712 in the U.K. (England, Wales, Scotland and Northern Ireland)
- 166 in the Republic of Ireland (ROI)
- 187 in the Czech Republic
- 157 in Slovakia
- 197 in Hungary
For 2023 the group sales amounted to 57.7 billion pounds, up from 2022’s 54.8 billion.
The grocer’s business model focuses on knowing its customers’ wants and needs. That includes operating a variety of store formats (from small shops to large stores, plus online and wholesale options); tailoring its portfolio of private labels; investing in its team, services and innovations; and having the scale and reach to fulfill its goals.
In response to customer feedback — surveys found that "mascara" was in the top 20 most searched products which were unavailable for home delivery, along with "Rimmel" and "Maybelline" — in November 2023, Tesco made more than 300 cosmetic items from Coty's Rimmel and Sally Hansen brands available to online customers, with plans to add thousands more products in 2024 from brands that include L'Oreal Paris and Maybelline.
Merchandising
Store Formats/Growth
Store Formats/Growth
Tesco operates 4,859 stores in five markets:
- 3,712 in the U.K.
- 166 in the Republic of Ireland (ROI)
- 187 in the Czech Republic
- 157 in Slovakia
- 197 in Hungary
Tesco itself has several formats, including its Superstore, Extra and Express banners. The larger Superstore and Extra formats sell more than groceries and household merchandise. They also stock a wide variety of other products and offer a range of services that can include battery recycling, food bank collection, passport photo booths, Tesco Mobile and/or banking, pharmacy services, fuel stations, car washes, EV charging, coffee kiosks, to-go foods, Vision Express optical and The Entertainer Toy Shops. Express formats focus on quick shopping and convenience options.
Tesco continues to focus on seamless, convenient shopping experiences. Part of that effort is evident in its opening its 2,000th U.K. Tesco Express store. It also has more than 1,000 One Stop stores and more than 7,000 Booker stores.
GetGo Format
The retailer offers a frictionless, checkout-free shopping experience in select Tesco Express stores. Shoppers log in to their Tesco Grocery & Clubcard app, and choose GetGo in the settings menu. Once logged in and a payment method is set, shoppers can select "Shop with GetGo" and begin their purchase. Touch-free technology provider Trigo tracks the inventory throughout the shopping journey, and the transaction is complete when the shopper scans their app as they leave the store.
Tesco is also testing a new scan-free technology at its Tesco Fulham Reach Express location. Customers can walk up to the scan-free checkout, and it will present a list of the products they have in their basket. They can the check the list and approve the purchase; a receipt will be emailed to them moments after the transaction is complete.
Most stores with the GetGo option also offer self-service and cashier checkout.
Retail Media
Retail Media
Tesco launched Tesco Media and Insight, powered by dunnhumby, in late 2021. Its tagline is “Deliver Connected Customer Experiences.”
E-Commerce
E-Commerce
Tesco has the largest online grocery service in the U.K., steadily growing its options with new initiatives like its Whoosh rapid delivery service (see below) and frictionless GetGo technology-equipped stores. (See Store Formats.)
Customers can opt for home delivery, expedited delivery (through Whoosh), or Click + Collect pickup, accessible by mobile.
There are more than 400 collection locations and a wide range of pickup slots, including same-day options. Customers can pick up the orders curbside or at a self-service locker on-site. More than 70% of U.K. households are within 25 minutes of a Click + Collect site.
Delivery Saver
The retailer offers tiered Delivery Saver plans available for six- and 12-month terms, with 12-month plans costing less over the long run.
- Anytime Click + Collect: 2.49 pounds monthly or 14.94 up front. Only available in six-month plans. Subscribers can shop and collect the same day, pick up orders any time, and access priority-collection Christmas and Easter slots. Same-day delivery is an option for an extra 2-9 pounds per delivery.
- Off Peak Delivery: 4.99 pounds monthly or 29.94 up front for six months, or 3.99 monthly or 47.88 up front for a 12-month plan. Same-day curbside pickup, anytime pickup, next-day home deliveries and after 3 p.m. deliveries are included. Same-day delivery is an option for an extra 2-9 pounds per shop.
- Anytime Delivery: 7.99 pounds monthly or 47.94 for six months, or 6.99 monthly or 83.88 up front for 12 months. Offers same benefits as Off Peak, but includes same-day delivery at no added cost and access to priority-collection for Christmas and Easter.
Home delivery options also include one-hour and Flexi-saver slots, with updates on the order’s fulfillment journey. For delivery there is a minimum spend of 50 pounds; for Click + Collect the minimum order is 25 pounds.
Loyalty Programs
Loyalty Programs
Tesco Clubcard members can access options such as Scan as you Shop and take advantage of personalized savings. Periodically the retailer holds seasonal or event-driven sales. In time for the 2024 Easter school holidays, for example, Tesco Clubcard holders receive added savings on select toy brands that include Mattel, Hasbro and Spin Master.
The rewards program also allows members to collect points for money spent and exchange them for vouchers redeemable in-store or at locations such as Legoland or Pizza Express.
In 2024, Tesco introduced a six-week AI-powered Clubcard Challenge. Three million loyalty cardholders are being invited to take part. Those who accept receive 20 personalized challenges shaped by AI, and they can choose the 10 they most want to complete, such as reaching a minimum spend on specific brands or product categories. Completing the challenge results in extra Clubcard points, worth up to 50 pounds.
Clubcard data helps retail media partnerships as well, with the program boasting a
- 79% reach in the U.K.,
- 77% in the Republic of Ireland, and
- 83% in Central Europe.
There are 21 million active Clubcard households, and
- 11.7 million Clubcard app users in the U.K.,
- 2 million in Central Europe, and
- 0.7 million in the Republic of Ireland.