Tesco the supermarket giant has been going from strength to strength over the past decade, opening hundreds of stores not only in the UK but in Europe.
This week the world of Tesco was plunged into a bit of bother after a totally dismal Christmas, which in their history of growth and power, was the first time that the company had taken a dint and it was all down to a terrible Christmas 2011.
So, what will Tesco do to pick up the pieces of a disastrous festive season, that’s right, an overhall of all of the stores including reducing the amount of giant stores opened out-of-town.
It was around £5bn that was wiped off Tesco’s stock market value yesterday, for the first time in their 30 year financial success story.
Tesco blamed their rival companies Asda and Sainsburys, their trading weeks and the fact that these other supermarkets were offering incredible money off deals and vouchers to lure customers to them.
This isn’t going to kill Tesco’s, it is a slight problem but from the top “This will only make us stronger”.
They are planning to plough millions into improving the quality of their fresh fruit and veg.
Tesco has always cornered the market by trying to be everything to everyone, clothing and electricals were incredibly popular at one time but the boom in on-line shopping has meant that in those particular departments, the supermarkets are no longer the leaders.
In Autumn Tesco announced the “Big Price Drop” which has been aptly named “The Big Price Flop” due to the decrease in profits. Another point to think about is that customers were not just looking at cheap prices this year, after a bad year they were willing to pay a little more for quality as a treat to themselves.
Funnily enough Tesco still gain £1 from every £7 spent on the high street, so they still have a strong position.