The retail industry of the UK has a vital role in the economy by providing 11% of jobs for the total workforce of the country. National Statistics demonstrated that the retail industry has a worth of £265 billion and pointed out as a flourishing sector. The integration of Information technology in this sector has turned the industry drive online e-commerce rather than opening new outlets. The global financial crisis of 2008 has posed a serious threat to this industry. The credit crash, fall of the mortgage market, and withdrawing of credit cover have failed to protect the smaller suppliers and reduced the consumption as well as raised job cuts.
Tesco PLC is only one retail company in the UK, which makes huge profits under the global financial crisis and expands its business operation. According to the annual report 2009 of Tesco, it is the third-largest grocery retailer in the global market and second-largest in the UK market. The UK grocery retail market remains its biggest source of revenue, for instance, 50% of total revenue comes from this market, and a further 30% of Group revenues are generated from international markets. In addition, it has about 4,331 stores worldwide, and it has more than and 470,000 efficient and dynamic employees. Its sales revenue is increasing each year both in the national and international market. For example, last year, its group sales were £59.4 billion, whereas it was £51.8 billion in 2008.
It has operations in 14 different countries around the world though it earns core profits from the UK market, and it serves quality foods at a sound price considering its target customers.
However, the main objective of Tesco is to create value for customers to earn lifetime loyalty by identifying customers’ demands and environmental challenges and implementing new diversified strategies. Tesco has taken a new strategy to expand its operation internationally in many sectors besides drinks and foods items, and it has divided its operation into mainly two criteria- food items and non-food items. As a result, Tesco has acquisition with RBS to introduce Tesco Personal Finance, and TPF earned a 6.9% market share grab in the credit card business in 2008. However, it has both direct and indirect competitors considering its sales, profitability, value services, financial ratios, products and services range. Asda & Sainsbury’s are the main competitors of Tesco in the retail market, and Barclays, HSBC Holdings, and Sainsbury’s Bank are the major competitors in UK financial market.