what is the dis advantage of the supermarket?

Answer 1

Relative to what, a convenience store or a hypermarket?

Answer 2

It makes small buisinesses who care far more about their customers go under, because they cannot compete. It empties town centres, because people can get everything they need out of town in the supermarket. It lowers the standard of goods, because small buisinesses need to retain their customers, so will give them high quality products - supermarkets don't care if they lose even a few hundred people. Super low prices that you get in supermarkets are also bad for farmers - for instance in Britain many dairy farmers would lose money every day if it wasn't for subsidies from the government, because the supermarkets pay them less for their milk than it costs to raise the cows.

Answer 3

3

Answer 4

2

Answer 5

1

Answer 6

The problem is the over processed food sold at a low cost. This is why lots of Americans are obese, have high blood pressure, and are diabetic. Most of these food are high in sugar, salt, fat and calories.

Answer 7

Welcome to Wild Rice Country!

Located in a rural mountain valley, nestled between the Cascade and Sierra Nevada mountain ranges, is the Fall River Valley, home to Fall River Wild Rice, a small grower owned cooperative. The fertile soils, clean air, spring waters and crisp climate of this high mountain valley offer ideal growing conditions for the natural cultivation of this native North American grain.

Also known as the California Wild Rice Growers Association, the Cooperative was initially formed in 1986 as a means to market wild rice. Upon the realization that finished wild rice was the only way to guarantee a consistent price to the grower, the Cooperative built a processing plant at it's current location in Fall River Mills, California. Today Fall River Wild Rice is a major player in the wild rice industry. Catering to industrial, foodservice, and retail markets around the world.




Meet one of our wild rice growers, Gail Lennon. Gail is a pioneer of the wild rice growers. She's been with us from the beginning. From that First Season in 1984, through the Production Boom of 1986, the Water Shortage of the early 90's and all the way to the Power Crisis of 2001!!


Gail Lennon

I have been producing wild rice since it was introduced to our valley in 1984. I took part in the initial research and development of this sustainable crop because I believed it was particularly suitable for our own heavy soils, and was fascinated with its history as being the only grain native to our country. It was called "manoomin", which means "precious grain." I remember the year after the first crop, when we new growers watched and waited to see if the fields we had harvested would volunteer and be really sustainable. They did and the yields were even better!

However, the next year was not good for us as we found we were at the mercy of the BIG buyers, with processing facilities. They knew we had to take any price they offered, as our crop must be harvested green and is highly perishable. They did not grant us mercy. Again, we got together and brain stormed. We wanted to keep the crop in our valley but could not survive with our cost input if we could not control the sales. A group decision was reached where we would investigate building our own processing plant and thus not be driven to sell only at harvest and at a great disadvantage. To make a long story short, we formed a cooperative and built a processing plant.

After many mistakes, hard knocks, and leftover inventory, we have learned much about processing our wild rice. Our wild rice was chosen as the best tasting by the American Tasting Institute two year in a row. But learning to grow and process our delicious and wonderful native grain has been easy compared to breaking into the retail and wholesale markets. It is vicious in the marketplace.




I am particularly excited by our new product, Fall River Wild Rice Chips, because not only are the chips absolutely delicious and healthy, they use the part of our production that is harder to sell, the broken and little grains. Now we grind them up into flour and make chips! They really taste good and are nutritious too!

In February 1999, the National Family Farm Coalition (NFFC) asked if I would represent them in the SuperMarket project of the Rural Coalition. Our first meeting was in Epes, AL at the home of the Southern Federation of Cooperatives. Many diverse organizations attended from all over the nation and from Mexico such as Intertribal Agriculture Council (who control, 79% of of the 54 million acres held in trust for Indian people), Mississippi cooperatives, Hispanic and Hmong cooperatives in California, and many others.

The purpose of the SuperMarket project was to cooperatively develop an interactive web site to be used as a marketing, technical assistance and marketing tool, to locate new markets and methods that will result in increased earnings for cooperatives, and to develop a self supporting secondary cooperative. At this meeting we learned about forming cooperatives, types of cooperatives and began our talks on developing a web site, where we could all sell our products.






Many of us were introduced to computers and we began to learn how we could use them to communicate and of the many potentialities for their use as a tool in our businesses. We discussed the various products we had and the difficulties we all experienced in marketing. Despite our differences in crops, cultures, and regions, our values are very similar. We all knew and believed in our products and valued family sized farms where stewardship is part of life. Most important, we all are willing to work together to achieve our dreams.

At our second meeting, we began to construct web sites and talked about the logistics of marketing. It was there it dawned on me that I was not only a member of the NFFC but I belonged to a cooperative that had experienced and overcome some of the very issues we were discussing. I was able to share our web page and some of our experiences in setting up a processing plant and the problems we had run into in our initial marketing attempts. As a result, Fall River Wild Rice became involved in the Rural Coalition's SuperMarket project.

Hiram Oilar, Fall River Wild Rice's general manager, attended our third meeting in St. Louis and shared our experiences on how to identify consumers, what to expect from distributors, and the development of our value added product, Fall River Wild Rice Chips. The SuperMarket Project has truly become a cooperative of cooperatives. Because of the Rural Coalition, we keep in touch with each other and the learning process has not stopped. We now can jointly attack and solve problems and have more hope of keeping the family farm alive.

We are excited by the opportunity that has been presented to us by the Rural Coalition's new Retail Store. We who grow healthy food and those that value and enjoy eating healthy and safe food now have a better opportunity to know each other. We family farmers have always known that our customers are most important but now we have the opportunity to know them and to interact. THIS IS GREAT!

I like to think that when a customer opens their box or bag of wild rice or a bag of our chips and sniffs, that they will actually smell the fresh air of our wild and beautiful valleys and almost hear the sounds of the geese and ducks flying overhead.

Fall River Wild Rice is on it's way to the successful marketing of our Wild Rice Chips and I believe our involvement with other organizations has been extremely helpful on this two way street. Our growers are a team and work well together researching and solving problems. Our main strength is our belief in our product and we don't mind working to spread the word. Wild rice is an important crop in our area. Our cooperative provides jobs and fully supports our community businesses. Our hopes are that we will be able to grow and make a difference to the family farm sector of our nation

TESCO PLANS FIRST U.S. STORE FOR 2007


Tim Mason to Head American Operation




LONDON (AdAge.com) -- Tesco, the U.K.’s largest grocery chain and one of its most successful brands, will open its first stores in the U.S. next year, and one of the region’s most powerful marketers, Tesco’s U.K. Marketing Director Tim Mason, will head the U.S. operation.









Tesco PLC (LSE: TSCO) is a United Kingdom-based international supermarket chain. It is the largest British retailer, both by global sales and by domestic market share. Originally specialising in food, it has moved into areas such as clothes, consumer electronics, consumer financial services, service and consumer telecoms. In the year ended 26 February 2005 Tesco made a pre-tax profit of £1.962 billion on turnover of £33.974 billion (the widely publicised headline profit of "over £2 billion" was "underlying profit" before certain accounting adjustments).



According to TNS Superpanel Tesco's share of the UK grocery market in the 12 weeks to 4 December 2005 was 30.6%. Across all categories, over £1 in every £8 of UK retail sales is spent at Tesco. Tesco also operates overseas, and non-UK sales for the year to 26 February 2005 were 20% of total sales.







Type
Public

Founded
1924

Location
Cheshunt Hertfordshire

Key people
Terry Leahy (CEO) Emily Moss

Industry
Retail (Grocery)

Products
Grocery, general merchandise, financial services, telecoms

Revenue
£33.974 billion GBP (2005)

Operating Income


Net Income


Employees
240,000

Website
www.tesco.com









History


Tesco was founded by Jack Cohen, who sold groceries in the markets of the London East End from 1919. The Tesco brand first appeared in 1924. After Jack Cohen bought a large shipment of tea from T.E. Stockwell, he made new labels by using the first three letters of the supplier's name and the first two letters of his surname forming the word "TESCO". This information was verified by the TESCO press relations on BBC Radio in the South on December 10th. In the late 1990s, the typeface of the logo was changed to the current one shown on the top of the page with stripe reflections underneath the typefaces as Tesco used them on their carrier bags.



The first Tesco store was opened in 1929 in Burnt Oak, Edgware, London. The firm was floated on the London Stock Exchange in 1947. The first Tesco self-service store opened in 1948 in St Albans and is still trading in 2005. The first Tesco supermarket was opened in 1956 in a converted cinema in Maldon, Essex.



It has been said that it began own-label canning at the former Goldhanger Fruit Farms factory, sited a few miles from Maldon in the village of Tolleshunt Major, despite Goldhanger being another nearby village. The factory has since been sold. It is now a transport depot, with several other business units on the site.



Tesco's first "superstore" was opened in 1968 in Crawley, West Sussex. It began selling petrol in 1974 and its annual turnover reached one billion pounds in 1979. Also In 1975 Tesco opened one of its first Hypermarket's in Irlam. The first Hypermarket under the "Extra" name opened in 1997. It introduced a loyalty card branded 'Clubcard' in 1995 and later an Internet shopping service. During the 1990s it expanded into Central Europe, Ireland and East Asia. In July 2001 it became involved in internet grocery retailing in the USA when it obtained a 35% stake in GroceryWorks. In October 2003 it launched a UK telecoms division, comprising of mobile and home phone services, to complement its existing internet service provider business. In August 2004, it also launched a broadband service.





In addition to opening its own stores, Tesco has expanded by taking over other chains, including:

Victor Value, England, 1968 (sold again in 1986)

William Low, Scotland, 1994

Quinnsworth, Stewarts and Crazy Prices stores, Republic of Ireland and Northern Ireland from Associated British Foods, 1997

13 HIT hypermarkets in Poland, 2002

T & S Stores, owner of the UK convenience store chains One Stop and Day & Nite, 2002

C Two-Network in Japan, 2003

A majority stake in Turkish supermarket chain Kipa in 2003.

Lotus in Thailand

Hillards, North of England 1984

21 remaining Safeway/BP stores in late 2005, when supermarket chain Morrisons dissolved its Safeway/BP partnership (entered into when aquiring Safeway)



Corporate strategy


Tesco's growth over the last two or three decades has involved a transformation of its strategy and image. Its initial success was based on the "Pile it high, sell it cheap" approach of the founder Jack Cohen. The disadvantage of this was that the stores had a poor image with middle-class customers. In the late 1970s Tesco's brand image was so negative that consultants advised the company to change the name of its stores. It did not accept this advice, yet by early 2005 it was the largest retailer in the United Kingdom, with a 29.0% share of the grocery market according to retail analysts TNS Superpanel, compared to the 16.8% share of Wal-Mart-owned ASDA and 15.6% share of third-placed Sainsbury's, which had been the market leader until it was overtaken by Tesco in 1995. Key reasons for this success include:



An "inclusive offer". This phrase is used by Tesco to describe its aspiration to appeal to upper, medium and low income customers in the same stores. According to Citigroup retail analyst David McCarthy, "They've pulled off a trick that I'm not aware of any other retailer achieving. That is to appeal to all segments of the market" [1]. By contrast ASDA's marketing strategy is focused heavily on value for money, which can undermine its appeal to upmarket customers even though it actually sells a wide range of upmarket products. During its long term dominance of the supermarket sector Sainsbury's retained an image as a high-priced middle class supermarket which considered itself to have such a wide lead on quality that it did not need to compete on price, and was indifferent to attracting lower-income customers into its stores. This strategy has been adandoned since losing the no.1 spot to Tesco and particularly since the arrival of Justin King as CEO in 2004 who has established a new customer-focused strategy closer to that of Tesco.

One plank of this inclusivity has been Tesco's use of its own-brand products, including the upmarket "Finest" and low-price "Value" ranges. The company has taken the lead in overcoming customer reluctance to purchasing own brands, which are generally considered to be more profitable for a supermarket as it retains a higher portion of the overall profit than it does for branded products.

Customer focus: Sir Terry Leahy, chief executive since the mid 1990s, has taken the bold step of trying not to focus on the usual corporate mantra of "maximising shareholder value". The company's mission statement reads, "Our core purpose is, 'To create value for customers to earn their lifetime loyalty'. We deliver this through our values, 'No-one tries harder for customers', and 'Treat people how we like to be treated'". The underlying aim is of course to make higher profits, but there is a clear focus on customer service at the top level of the company. It remains to be seen whether Tesco will be able to maintain this focus now that it is widely perceived as a great corporate success story and the dominant company in the United Kingdom retail market, or if it will succumb to corporate arrogance as sometimes happens to dominant companies.

Diversification: The company has a four-pronged strategy:



"Core UK business" - That is, grocery retailing in its home market. It has been innovative and energetic in finding ways to expand, such as making a large-scale move into the convenience-store sector, which the major supermarket chains have traditionally shunned.

"Non-food business" - Many United Kingdom supermarket chains have attempted to diversify into other areas, but Tesco has been exceptionally successful. By late 2004 it was widely regarded as a major competitive threat to traditional high street chains in many sectors, from clothing to consumer electronics to health and beauty to media products. Tesco sells an expanding range of own-brand non-food products, including non-food Value and Finest ranges. It also has done quite well in non-food sales in Ireland. CDs are one of the best examples, with Tesco Ireland promising to sell all chart CDs (except compilations) for €14.95 compared with HMV Ireland or Golden Discs selling the same for just over or under €20.

"Retailing services" - Tesco has taken the lead in its sector in expanding into areas like personal finance (see below), telecoms (see below), and utilities. It usually enters into joint ventures with major players in these sectors, contributing its customer base and brand strength to the partnership. Other supermarkets in the United Kingdom have done some of the same things, but Tesco has generally implemented them more effectively, and thus made most profit.

"International" - Tesco began to expand internationally in 1994, and in the year ending February 2005 its international operations accounted for just over 20% of sales, or about £7 billion (approximately $13 billion). It has focused mainly on developing markets with weak incumbent retailers in Central Europe and the Far East, rather than on mature markets such as Western Europe and the United States. The medium term aim is to have half of group sales outside the United Kingdom. Tesco rolls out successful UK initiatives in other countries. For example Tesco Financial Services and Tesco Express convenience stores both operate in several markets.



Overall Tesco's success is probably based mainly on getting the basics of retailing right slightly more often than most of its rivals.





UK operations


Formats


Tesco's UK stores are divided into five formats, differentiated by size and the range of products sold.



Tesco Extra are larger, out-of-town hypermarkets that stock all of Tesco's product ranges. The first Extra opened in 1997 and the 100th in the 2004/05 financial year. The number of these is now being increased by about 20 a year, mainly by conversions from the second category. Typical size 66,000 square feet (6,100 m²). As of January 2006 Tesco's largest UK store is in Slough and is 190,000 square feet (18,300 m²). This store is unusual in being raised on stilts to maximise space utilisation. A standard Wal-Mart Supercenter in the U.S. is around 200,000 square feet (20,000 m²).

Tesco Hypermarket are very rare now , they came before the extra name. these are roughly the same size as Tesco Extra (if not bigger) and came in 1970's. The flagship store was in Irlam (now an extra) and each store has its own personality.

Tesco stores are standard large supermarkets, stocking groceries plus a much smaller range of non-food goods than Extra. They are referred to as "superstores" for convenience, but this word does not appear on the shops. It is the "standard" Tesco format, accounting for the majority of UK floorspace. Most are located in suburbs of cities or on the edges of large and medium-sized towns. The typical size is 31,000 square feet (2,900 m²).

Tesco Metro stores are sized between normal Tesco stores and Tesco Express stores. They are mostly located in city centres and on the high streets of small towns. Typical size is 12,000 square feet (1,100 m²).

Tesco Express stores are neighbourhood convenience shops, stocking mainly food with an emphasis on higher-margin products (due to lack of economies of scale) alongside everyday essentials. They are found in busy city centre districts and small shopping precincts in residential areas, and on petrol station forecourts. There are 546 stores at 26 February 2005 year end, with a typical size of 2,000 square feet (190 m²).

One Stop The only category which does not include the word Tesco in its name. These are the very smallest stores. They were part of the T&S Stores business but, unlike many which have been converted to Tesco Express, these will keep their old name. There are more than 500 of them. Typical size 1,300 square feet (120 m²).



In May 2005 Tesco confirmed that it will be trialing a non-food only format [2]:



Tesco Homeplus : These stores offer all of Tesco's ranges except food in warehouse-style units in retail parks. The first one opened in Manchester in September 2005. Tesco is trying this format because only 20% of its customers have access to a Tesco Extra, and the company is restricted in how many of its superstores it can convert into Extras and how quickly it can do so. Large units for non-food retailing are much more readily available.







Store summary at 26 February 2005


At the end of its 2004/05 financial year Tesco's UK store portfolio was as follows. [3]





Format
Number
Area (ft²)
Area (m²)
Percentage of space

Tesco Extra
100
6.6 million
613,000
27.2%

Tesco
446
13.9 million
1,290,000
57.4%

Tesco Metro
160
1.9 million
180,000
7.8%

Tesco Express
546
1.1 million
102,000
4.5%

One Stop
527
0.7 million
65,000
3.1%

Total
1,779
24.2 million
2,250,000
100%






Tesco Personal Finance


Tesco has a banking arm called Tesco Personal Finance, which is a 50:50 joint venture with the Royal Bank of Scotland. The products on offer include credits cards, loans, mortgages, savings accounts and several types of insurance, including car, home, life and travel. They are promoted by leaflets in Tesco's stores and through its website. The business made a profit of £202 million for the 52 weeks to 26 February 2005, of which Tesco's share was £101 million.





Telecoms


Tesco operates ISP, mobile phone and home phone businesses. These are available to UK residential consumers and marketed via the Tesco website and through Tesco stores.



Though it launched its ISP service in 1998, the firm did not get serious about telecoms until 2003. It has not purchased or built a telecoms network, but instead has pursued a strategy of pairing its marketing strength with the expertise of existing telcos. In autumn 2003 Tesco Mobile was launched as a joint venture with O2, and Tesco Home Phone created in partnership with Cable & Wireless. Tesco Mobile currently offers only prepaid accounts. In August 2004 Tesco broadband, an ADSL-based service delivered via BT phone lines, was launched in partnership with NTL.



Tesco announced in December 2004 that it has signed up 500,000 customers to its mobile service in the 12 months since launch. In December 2005, it announced it had one million customers using its mobile service. In April 2005 it announced that it had over one million telecom accounts in total, including mobile, fixed line and broadband accounts. [4]





Internet operations


Tesco has operated on the internet in the UK since 1994 and was the first retailer in the world to offer a robust home shopping service in 1996. Tesco also has Internet operations in the Republic of Ireland and South Korea. Grocery sales are available within delivery range of selected stores, goods being hand-picked within each store. This model, in contrast to the warehouse model initially followed by UK competitor Sainsbury, and still followed by UK internet only supermarket Ocado, allowed rapid expansion with limited investment, but has been criticised by some customers for a high level of substitutions arising from variable stock levels in stores. Nevertheless, it has been popular and is the largest online grocery service in the world.



In 2001 Tesco invested in GroceryWorks, a joint venture with Safeway in the United States, operating in the United States and Canada. GroceryWorks has stepped into the void left by the collapse of Webvan, but has not expanded as fast as initially expected.



Concerned with poor web response times (at the time of its launch in 1996, broadband was virtually unknown in the UK), Tesco offered a CDROM-based offline ordering program which would connect only to download stock lists and send orders. This was in addition to, rather than instead of, ordering via web forms, but was withdrawn in 2000.



Tesco claims (in its 2005 annual report) to be able to serve 98% of the UK population from its 300 participating stores. Tesco delivers to over 1 million households, with more than 120,000 orders per week, by 1,000 local delivery vans. In the financial year ending 26 February 2005 it recorded online sales up 24.1% to £719 million and profit up 51.8% to £36 million.



The Tesco.com site is also used as a general portal to most of Tesco's products, including various non-food ranges (under the "Extra" banner), Tesco Personal Finance and the telecoms businesses, as well as extra services which it offers in partnership with specialist companies, such as flights and holidays, music downloads (as of June 2005 Tesco claims a 10% UK market share), gas, electricity and DVD rentals. It does not currently sell clothing online. In May 2005 it introduced a clothing website [5], but initially at least this serves solely as a showcase for Tesco's clothing brands, and customers still have to visit a store to buy.



Operations outside the UK


Many British retailers that have attempted to build an international business have failed. Tesco has responded to the need to be sensitive to local expectations in foreign countries by entering into joint ventures with local partners, such as Samsung Group in South Korea, and appointing a very high proportion of local personnel to management positions.



In late 2004 the amount of floorspace Tesco operated outside the United Kingdom surpassed the amount it had in its home market for the first time, although the United Kingdom still accounted for more than 75% of group revenue due to lower sales per unit area outside the UK.



In September 2005 Tesco announced that it was selling its operations in Taiwan to Carrefour and purchasing Carrefour's stores in the Czech Republic and Slovakia. Both companies stated that they were concentrating their efforts in countries where they had strong market positions [6]. Tesco is the grocery market leader in the Republic of Ireland, with a reported November 2005 share of 26.3%. [7]



The following table shows the number of stores, total store size in square feet and sales for Tesco's international operations. All the figures are for 31 December 2004 or the year to 31 December 2004, except for the Republic of Ireland data, which is at 26 February 2005, like the UK figures.





Country
Entered
Stores
Area (ft²)
Turnover (£ million)

China
2004
31
2,637,000
Note 1

Czech Republic
1996
25
2,145,000
386

France
1992
1
16,000
Note 2

Hungary
1994
69
3,515,000
933

Japan
2003
104
385,000
266

Malaysia
2002
6
584,000
83

Poland
1995
78
4,212,000
691

Republic of Ireland
1997
87
2,046,000
1,336

Slovakia
1996
30
2,053,000
326

South Korea
1999
38
3,211,000
1,585

Thailand
1998
107
5,920,000
969

Turkey
2003
5
406,000
146






Note 1: The business in China is a joint venture and its turnover is not reported in Tesco's 2005 brokers' pack.



Note 2: Tesco owned a French chain called Catteau between 1992 and 1997. Its existing single store in France is a wine warehouse in Calais, which opened in 1995 and is targeted at British day trippers. Wine is much cheaper in France than in the UK because the duty is far lower. Turnover is not reported separately.



Financial performance


Tesco is listed on the London Stock Exchange under the symbol TSCO. It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC.



All figures below are for the Tesco's financial years, which run for 52 or 53 week periods to late February.





52/3 weeks ended
Turnover (£m)
Profit before tax (£m)
Net profit (£m)
Earnings per share (p)

26 Feb 2005
33,974
1,962
1,366
17.72

28 Feb 2004
30,814
1,600
1,100
15.05

22 Feb 2003
26,337
1,361
946
13.54

23 Feb 2002
23,653
1,201
830
12.05

24 Feb 2001
20,988
1,054
767
11.29

26 Feb 2000
18,796
933
674
10.07

27 Feb 1999
17,158
842
606
9.14

28 Feb 1998
16,452
760
532
8.12






Tesco is between the fourth- and the sixth-largest retailer in the world, depending on how this is calculated. The three largest are Wal-Mart, Carrefour and Home Depot. METRO and Ahold are also larger than Tesco based on total turnover, but METRO's sales include many billions of wholesale turnover and Ahold's many billions of foodservice turnover, and their retail turnovers are less than Tesco's. On its website Tesco claims to be the third-largest retailer in the world. Presumably it is ignoring Home Depot, which as a home improvement company is not in the same business, but is certainly a retailer.



At 26 February 2005 Tesco operated 1,779 stores in the UK (24.2 million square feet, 2.23 million m²) and 586 outside the UK (27.6 million square feet, 2.54 million m²). Tesco plans to expand UK floorspace by 8% and non-UK floorspace by 20% in 2005/06.



Tesco's market capitalisation on 31 August 2005 was £25.3 billion ($45.2 billion), which was the largest of any retailer based outside the United States. For the 24 weeks to 13 August 2005 revenue growth was 13.8% and profits increased by 18.7% after tax and 18.0% after tax.






Friends Of The Earth campaign logo, in their bid to highlight Tesco monopoly




Controversy


Like a number of leading companies, Tesco attracts criticism from those who are suspicious of big business. Tesco is a target for people in the UK who disapprove of large retailers and the effects they can have on farmers, suppliers and smaller competitors.



The group has also been criticised for its tactics, including allegedly misleading consumers with a "phoney" price war [8] (this claim was made by a rival retailer, which wished to assert that its own price cuts were better; all the major UK supermarkets are experiencing price deflation).



Tesco's 2004 Adminstore acquisition led to local and national protests. Tesco's other store openings and expansions are sometimes contested by campaign groups. These campaigns have not hindered Tesco's expansion programme very much.



Another point of controversy is the recent expansion of Tesco into the convenience store market. When a company controls more than 25% of a business sector in the UK, it is usually blocked from buying other companies in that sector (but not from increasing its market share through organic growth). The Office of Fair Trading currently treats supermarkets and convenience stores as two distinct sectors - although this definition has been challenged by smaller retailers, including the Association of Convenience Stores [9].



Tesco is also criticised by those who think that it infringes upon the interests of farmers and smaller suppliers. The company responds by claiming that it follows industry-best practice and sources locally where it can to meet customer demand. In March 2005 the Office of Fair Trading published an audit of the workings of its code of practice on relationships between supermarkets and their suppliers. It reported that no official complaints had been received against Tesco or any of the other major supermarkets, but the supermarkets' critics, including Friends of the Earth, contested that suppliers were prevented from complaining by fear of losing business, and called for more rigorous supervision of the supermarkets. A further report by the Office of Fair Trading in August 2005 concluded that the aims of the Code of Practice were being met.



In May 2004, Tesco announced it was reducing sick pay in an attempt to reduce levels of unplanned absence, which however implies that worker's may be forced to work whilst setting their personal health to risk for fear of a decrease in their income.



In December 2005, a committee of UK MPs produced a report accusing Tesco of "riding roughshod over planning rules" [10]. The accusation stemmed from the company's building of a store in Stockport that was 20% larger than the company actually had permission to build.







References


Clive Humby, Terry Hunt and Tim Phillips - Scoring Points: How Tesco Is Winning Customer Loyalty (2003) ISBN 074943578X

Jack Cohen wrote an autobiography Pile it high and sell it cheap.







TESCO LINKS:





Official

Tesco website

Tesco Broadband

Press coverage

Retail star hit by tall poppy syndrome - a free market argument from The Times 11 November 2005.

Small retailers revolt over the 'Tesco-isation' of the high street. Independent, 19 October 2005

Wal-Mart calls for probe into dominant Tesco, The Sunday Times, 28 August 2005

Environmentalists target Tesco, BBC News, 17 June 2004

Tesco buys Japanese retailer, BBC News, 10 June 2003

Critical sites

Supermarket Sweep Up, independent blog dedicated to Tesco's business practices

Very Little Helps : Independent Tesco Community Forum

Tescopoly.org, Friends Of The Earth site criticizing Tesco.

Other

Tesco structure chart








--------------------------------------------------------------------------------







SUPERMARKET and RESTAURANT LINKS :



Aldi - Discount supermarket chain Australia, Austria, Belgium, Denmark, France, Ireland, Luxembourg, Netherlands and the USA.

Aldi (UK) (discount supermarket chain) This UK site includes details of current weekly special offers (with an option to subscribe to a free email newsletter), store locations and new additions to the range of regular products.

Alldays (UK convenience store chain)

Asda (UK supermarket chain) This UK supermarket chain was originally established by Associated Dairies, hence the name, but recently taken over by Wal-Mart.

Auchan (hypermarket chain) This hypermarket chain is based in France but also has a few stores in other countries, including the USA.

Big W (UK hypermarket chain) Part of Woolworths, with similar store layout and range of good to the US KMart, Pamida, ShopKo, Wal-Mart, etc.

Boots or Boots (UK retail chain) Originally a chemists, Boots now also sell a wide range of goods.

British Home Stores (BHS) (UK department store chain)

Budgens (UK supermarket chain)

Burger King (UK) - Includes a restaurant locator current special offers.

Carrefour (supermarket chain) This supermarket chain is based in France but also has a large number of stores in several other European countries and other parts of the world.

Co-Op Stores (UK) (UK retail chain) This site covers the UK Co-op's supermarkets and other shops. There are separate Co-op organisations in some other European countries.

CostCo (UK division of the US membership warehouse retail chain)

Debenhams or Debenhams (UK department store chain)

Farmfoods (UK supermarket chain) This chain sells mainly but by no means exclusively frozen food.

Iceland (UK supermarket chain)

Harry Ramsden's Fish And Chips Includes details of menu items and locations.

John Lewis Partnership (UK department store chain)

Kaufhof (German department store chain)

Kentucky Fried Chicken (KFC) (UK) This site includes details of menu items.

Kwik Save (UK supermarket chain) A few years ago the Kwik Save chain was purchased by Somerfield.

Lidl (Germany) (European deep discount supermarket chain)

Lidl (UK) (European deep discount supermarket chain) Includes details of store locations, weekly specials, price reductions and a facility to subscribe to a weekly specials email newsletter.

Littlewoods (UK department store chain)

Londis (UK supermarket chain)

Makro (UK hypermarket chain) This chain is part of the German Metro group, a "cash and carry" for trade customers only. However, in practice it is very nearly a normal shop at normal proces.

Marks And Spencer (UK department store chain)

McDonald's (UK) - Fast food chain

Migros (Swiss supermarket/hypermarket chain)

Morrisons or Morrisons(UK supermarket chain)

Netto (UK) (discount supermarket chain) Includes details of locations and current special offers, and links to Netto sites in other countries featuring 'Smart Shopping'. By taking a no frills approach and cutting out all those unnecessary extras, we can offer you premium quality at the lowest prices in Britain. By only paying for what you want and nothing else we can give today’s busy customer a different and fresh alternative to grocery shopping. And most importantly of all, save you time and money, every day of every week.

Poundland (UK discount retail chain) All items in Poundland shops cost £1.

QD Stores (UK discount retail chain)

Range, The (UK retail chain) This chain has a small number of large stores with a layout similar to K-Mart and Wal-Mart, but UK prices.

Safeway (UK supermarket chain) Most of Safeway's 479 supermarkets in Britain have now been acquired by Morrison's, hence may be re-branded.

Sainsbury's (UK supermarket chain)

Somerfield (UK supermarket chain)

WH Smith (UK retail chain) - WH Smiths sells books, magazines, stationary items.

Spar (UK) (European convenience store chain) - This is Spar's UK site.

Spar (International) - This site covers Spar's operations in all countries.

Subway (UK) - The Subway submarine sandwich chain has 150 locations in UK & Ireland

Superdrug (UK retail chain) Superdrug is primarily a chemist.

Tesco (UK supermarket chain)

Upim (Italian department store chain)

Waitrose (UK supermarket chain) Part of the John Lewis organisation.

Wimpy's (UK fast food restaurant chain) Includes details of menu items and a restaurant locator, but no prices.










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WAL-MART, AFTER REMAKING
DISCOUNT RETAILING, NOW
NATION'S LARGEST GROCERY CHAIN
Grocery Chains Fighting Wal-Mart For Market Share
PATRICIA CALLAHAN AND ANN ZIMMERMAN,
Posted 5/31/2003

THE WALL STREET JOURNAL:

When two Wal-Mart Supercenters and a rival regional grocery opened near a Kroger Co. supermarket in Houston last year, the Kroger's sales dropped ten percent. Store manager Ben Bustos moved quickly to slash some prices and cut labor costs, for example, by buying ready-made cakes instead of baking them in-house, and ordering precut salad-bar items from suppliers. His employees used to stack displays by hand: Now, fruit and vegetables arrive stacked and gleaming for display.

Such moves have helped Mr. Bustos cut worker-hours by 30% to 40% from when the store opened four years ago, and lower the prices of staples such as cereal, bread, milk, eggs and disposable diapers. Earlier this year, sales at the Kroger finally edged up over the year before.

Just as Wal-Mart Stores Inc. reinvented the world of discount retailing over the past two decades, it is now remaking the grocery business. The Bentonville, Arkansas behemoth started selling food in 1988 and became the nation's largest grocer last year, with more than $53 billion in grocery sales. Wal-Mart sells groceries in at least 1,258 supercenters, 180,000-square-foot grocery/discount-store combinations, and in 49 small Neighborhood Markets. Most of the stores are in the South and Southwest.

If Wal-Mart's supercenters continue to expand at their current pace, within this decade, more than three-quarters of the nation's Krogers and Albertsons Inc. stores and more than half the Safeway Inc. outlets could be within ten miles of a Wal-Mart supercenter, according to Trade Dimensions, a market-data provider.

The fight for the carts and minds of customers already is having an impact. Shoppers in competitive markets are seeing prices fall as Wal-Mart pushes rivals to match its low costs. Among the tactics the chains are using: improving their inventory-tracking systems, doubling or tripling discount coupons and boosting customer loyalty with discount-card plans.

"Wal-Mart made us look at ourselves and reinvent ourselves," says Dick Tillman, who heads Kroger's Delta division of five Southern states, where Wal-Mart has built 80 supercenters and four Neighborhood Markets of roughly 40,000 square feet, about the size of an average supermarket.

The rivalry between Wal-Mart and No. 2 Kroger, based in Cincinnati, No. 3 Albertsons, of Boise, Idaho, and No. 4 Safeway, of Pleasanton, California, eventually could mean the death of at least one of the chains. Even with little direct Wal-Mart competition, Albertsons has been shrinking, closing underperforming stores, and Safeway is struggling to digest a plateful of acquisitions of regional chains. In smaller markets, independent stores and regional chains already are feeling pressure. In the past decade, 29 chains have sought bankruptcy-court protection, with Wal-Mart as a catalyst in 25 of those cases, says Burt Flickinger III, managing partner of Strategic Resource Group, a supermarket consulting firm.

Consolidation among grocers since the late 1980s gave Wal-Mart an incentive to break into the sector. With less competition, the price of food sold at supermarkets nationwide grew at twice the rate of the producer-price index from 1991 through 2001, fattening profits. That meant Wal-Mart could come in, cut prices ten percent to 15% and still make a profit.

As with its other merchandise, Wal-Mart is aggressive on cutting costs. To simplify inventory, suppliers are being asked to pack fresh chicken trays in uniform weights to make it easier for the store to restock and price the poultry. A machine, rather than a person, fries and flips doughnuts. Produce is stacked in reusable plastic containers to cut labor costs. Meanwhile, a central office at Wal-Mart's Arkansas headquarters monitors the stores' heating and cooling systems and refrigerated cases to control utility bills.

Studies show that items at Wal-Mart cost eight percent to 27% less than at Kroger, Albertsons or Safeway, including discounts from these competitors' loyalty cards and specials.

Customers are responding. Nancy Short, a receptionist at a Houston pediatric office, had shopped at the Houston Randalls, recently purchased by Safeway, until the Wal-Mart opened near her office last year. She found the variety and quality of produce similar to Randalls, she says, while favorite items like a Kraft Monterrey Jack cheese log and Frito-Lay Wow potato chips were half the price.

Wal-Mart customers do give up selection for convenience and low prices. At its Neighborhood Market stores, half the cash registers are self-service, potentially speeding checkout, and photo processing takes just half an hour. But the markets, as well as the supercenters, offer fewer choices. In barbecue-crazy Memphis, a Kroger store offered 13 types of locally made barbecue sauces, while the Wal-Mart supercenter had three. Meanwhile, some grocery chains offer customers more amenities, such as FTD-certified florists, custom-cut meats or a Starbucks in the store.

In response to the growing competition, Kroger lowered prices last year across the country, becoming the first of the large conventional chains to do so. It vowed to shave more than $500 million in costs by the end of its fiscal year on January 31, 2004. The company also cut 1,500 management and support-staff jobs and consolidated divisions.

Kroger, Albertsons and Safeway also have expanded their house-brand products, which tend to be at least ten percent more profitable than outsiders' major brands and can build loyalty among customers. About 24% of Kroger's total grocery sales come from its house brands; 41 company-owned manufacturing plants produce 7,500 Kroger products.

But that strategy can sometimes backfire: When Safeway dropped Boar's Head delicatessen meats for its own brand, customers complained.

All three chains are trying to capitalize on Wal-Mart's biggest weakness: meat. Three years ago, Wal-Mart reassigned its butchers to other jobs after a group of meat-cutters in east Texas voted to unionize. Wal-Mart turned to case-ready meat, packaged by the supplier. The decision left its meat counters with fewer choices and no customer service.

By contrast, a butcher at Kroger can custom-cut pork crown roasts for customers. Some Safeway stores offer prepackaged flank steak rolled around feta cheese and spinach. At an Albertsons, seasoned salmon filet with pesto butter costs the same as regular salmon filet: $4.99 a pound.

Still, labor costs put traditional grocers at a disadvantage. Labor, mostly unionized, makes up about 70% of a traditional grocer's overhead. Not one of Wal-Mart's more than one million U.S. employees belongs to a union. Some analysts say Wal-Mart pays about 20% less in labor costs, with most of these savings coming from more flexible work rules for its employees.
Wal-Mart says it offers competitive wages and benefits.

Wal-Mart still has problems to solve. With 100,000 people visiting an average supercenter each week, the stores' displays get messy and dirty quickly; aisles are jammed with new stock waiting to be shelved. Neatness is one quality in which Kroger and other competitors aim to outdo Wal-Mart.

Kristy Reece, a 25-year-old Houston microbiologist, shops at Kroger and says the Wal-Mart up the street doesn't appeal to her. "I'm the kind of person that'll pay more for organization and cleanliness," she says
WHAT'S NEW ON THE GROCERS' SHELVES

Birds Eye Voila! Chicken & Sausage Tuscano, Chicken Teriyaki & Vegetables, Roasted Garlic Chicken & Vegetables, Down Home Chicken & Vegetables, Teriyaki Beef & Vegetables. $5.19 per 21-ounce bag.
Bonnie: Birds Eye designed these Voila! frozen packages of meat, vegetable and sauce with the low-carb dieter in mind. They left out rice, potatoes and pasta and packed the bags full of nutritious vegetables including broccoli, water chestnuts, carrots, corn, peas, onions, red and green bell peppers, mushrooms, green beans and even edamame (yummy uncooked soybeans).

Thank goodness these bags contain much less sauce than previous versions of Voila! The result is decent-tasting (albeit a tad salty from the additives), convenient meals, modest in calories and fat, decent in fiber, rich in vitamins and high in protein. As you can tell, I'm impressed with these new Voila! frozen entrees. But just to keep my praise in perspective, that's in comparison to the [other] frozen foods I've had to sample for this column.

Carolyn: The bad news about Birds Eye's new low-carb sub-line of Voila! frozen meal kits for non-dieters like me? These supposed one-step convenience foods actually require the extra step of making pasta or rice. The good news is that -- unlike some other frozen food companies -- Birds Eye didn't just literally take the starch out of some old products to make them low-carb, but actually created some interesting new ones.

The beef teriyaki, for instance, is one of the only non-natural frozen food products I've ever seen to contain whole edamame. The Down Home Chicken & Vegetables contains more onion than any processed food I've ever eaten that wasn't a bag or can of onions. (Fortunately I like onions.) Overall, the meat is better, the sauces lighter and less salty, and the vegetables bigger and fresher-tasting than in Stouffer's Skillet Sensations and Green Giant Create A Meals!


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Moreover, hidden within this five-item line (and this review) is one of the best-tasting frozen dinners I've ever eaten. The Chicken & Sausage Tuscano features big pieces of peppers, mushrooms, chicken and fennel-accented sausage in a delicious, medium-spicy red sauce. It is, in short, restaurant quality. I will gladly boil pasta for the chance to eat this stuff with it.


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Kellogg's Special K for a Low Carb Lifestyle. $3.69 per 13.5-ounce box.
Bonnie: The flood of low-carb products we saw earlier in the year has finally slowed to a trickle (the presence of two such products in this single column notwithstanding). And I for one am thrilled. In addition to tasting horrid, the low-carb products often contained more calories and/or fat than the original versions. This Special K is no exception to my latter complaint. These lightly sweetened soy, wheat and rice flakes taste fine, but contain 3 grams of fat a serving compared to original Special K's zero. At least Kellogg's Special K Low Carb contains 4 grams more fiber than the original. It is Special K's fiber plus its vitamins, not its low-carb status, that leads me to recommend it.

Carolyn: Kellogg's took longer to come out with its low-carb cereal than General Mills did, and it put the extra time to good use: Low-carb Special K is a lot more palatable than Total Protein. Both taste like slightly sweetened Wheaties, but you won't get TMJ eating it, as you will from eating (or should I say gnawing on?) tough-to-the-point-of-seeming-stale Total Protein.

As an eater who is primarily interested in taste, I have a slight problem with Kellogg's putting the Special K name on a cereal that has none of Special K's characteristic rice-iness. But people who regularly pass up Cap' n Crunch and Cocoa Puffs or even Post Selects to buy Total or Special K are obviously not primarily concerned with taste anyway.



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Tribe Hummus Snackers. Classic, Roasted Garlic, Roasted Red Pepper and 40 Spices. $2.39 to $2.99 per variety pack containing four, 2-ounce cups.
Bonnie: Looking for something different and nutritious to carry as a snack? Tribe Hummus now sells a variety pack with four 2-ounce containers of flavored hummus. Hummus is that Middle Eastern dip/spread made from chickpeas (also called garbanzo beans) and sesame seed paste (tahini) that's great for dipping carrots, celery or other veggies into.

Athenos Travelers is a competitive hummus snack packed with mini pitas. Tribe packs less hummus with no accompaniment. Since I'm a vegetable hummus-dipper, I like Tribe a bit better. I'd send this to school in a lunch box along with a pack of mini carrots.

Carolyn: Tribe Hummus Snackers' big disadvantage compared to Athenos Travelers is that it comes without accompaniment.

Its advantages include a lower price (up to a third less than Travelers, all of which is going toward the hummus) and slightly smaller serving size. That's an advantage? For most people, yes, because when the snack tastes as good as these do, there is no such thing as not eating the whole thing.

(Bonnie Tandy Leblang is a registered dietitian and professional speaker. Carolyn Wyman is a junk-food fanatic and author of "Jell-O: A Biography" (Harvest/Harcourt). Each week they critique three new food items