Tesco PLC is the United Kingdoms biggest grocery retailer and the worlds fifth largest, with nearly half
Question:
Tesco PLC is the United Kingdom’s biggest grocery retailer and the world’s fifth largest, with nearly half a million employees, pre- tax revenues exceeding £63 billion, and over 7,000 stores globally, with operations in countries around the world.
Tesco’s origins can be traced back to 1918, when 21-year-old Jack Cohen began selling army surplus food from a barrow in Hackney. By 1924, Cohen had launched his first own-brand product—tea, the British staple. Combining the initials of his supplier, Thomas Edward Stockwell, with letters from his own name, he created the name “Tesco.” Since the first shop officially opened in 1929, Tesco has made a keen effort to cater to the mass market. World War I ended with the United Kingdom still in a state of austerity, and Tesco recognized the value in adopting the positioning of high volumes of goods offered at low prices, which soon earned Cohen the nickname “Slasher Jack.” In the 1960s, Tesco began selling household goods and clothing as well and aggressively expanded throughout the United Kingdom. They also leaned into the low-price positioning through marketing campaigns such as “Sir Save-a-lot” and the Green Shield stamp system, whereby stamps collected at checkout could be traded in for a range of goods. By the 1970s, Tesco had introduced the superstore, stocking both food and nonfood goods on its shelves.........
Questions
1. How do you think a concept like the Clubcard would fare today, now that the internet is commonplace and customer data analysis is an industry of its own?
2. As more and more customers have shifted to online purchasing, how might this impact Tesco’s ability to gain customer insights based on their purchases, given that the new Clubcard Plus system is exempt from online shopping?
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