Selected Retailer in Tesco Case Study Example | Topics and Well Written Essays - 4500 words

Selected Retailer in Tesco - Case Study Example Its customer data –base includes not only details about its client’s interests, and but also contains of an assorted variety of other food-associate services and non-food services and products and also the life-style and demographic details of its shoppers which include total dollars expended on food products in its stores and the customer response to its product promotion and allied programs. (Shajahan 2006:205). For the first time in the year 2005, Tesco achieved the thirty percent market share in the grocery market in UK.TESCO is the first retailer in UK to report revenues more than  £ 2 billion. This is really astonishing as this means that every  £8 spent by UK shoppers, about  £1 will be spent in Tesco stores. TESCO during 2008/09 recorded net sales of  £ 1.9 billion and its profit during the year touched a new height of  £ 109 million. TESCO online shopping website is the top five most visited retail websites on the global level, and it attracts about 3.3 million visitors on a weekly basis. TESCO is distributing about 12 million catalogues during a year and receives about 475,000 orders per week. It has the most effective distribution system and has about 2000 home delivery vans and offers employment for more than 20000 individuals. (Wade-Gery 2009). Tesco’s online retail sales are on the increase on an annual basis. Total online sales by adult population were just 17% in 2003, which jumped to a whooping figure of 62 percent in 2010. Though, Tesco’s online sale is only 7% of total retail sales of UK, but there is a still bright prospect for growth potential in this sector. (Wade-Gery 2009). TESCO’s online business is not only large but also rapidly developing. Online business adds more revenue to Tesco, and it has a competitive advantage as a multi-channel offers are being made. TESCO online business is of low capital intensity in nature but with high returns. Further, the  the online grocery market presents plenty of growth to Tesco as Tesco has penetrated about 3% of overall online grocery market in UK but only about 6.7% of Tesco’s grocery sales are made through online.