Citation
(2002), "Tesco scales the hypermarket league", International Journal of Retail & Distribution Management, Vol. 30 No. 3. https://doi.org/10.1108/ijrdm.2002.08930cab.004
Publisher
:Emerald Group Publishing Limited
Copyright © 2002, MCB UP Limited
Tesco scales the hypermarket league
Tesco scales the hypermarket league
Tesco is now one of the leading hypermarket operators in the world according to new research. IGD has created a "hypermarket rating", based on a number of factors such as total number of hypermarkets, number of countries of operation, clarity of hypermarket strategy and the role played by hypermarkets in the company's overall strategy (see Table IV).
Tesco is a relatively recent entrant to the hypermarket sector and the development of this format can be strongly linked to its international expansion. Although principally a supermarket operator in its domestic market, the company has recognised that the hypermarket is better equipped to gain market share in emerging markets.
Although Tesco has a small number of hypermarkets in comparison with its peers, it has developed a focused hypermarket strategy and a world class format; hence its high ranking in the league. Not only is the hypermarket used to drive its international expansion, it has also been brought back to the UK to support the group's non-food ambitions, instrumental in meeting its desire for organic growth.
Hypermarkets still remain a relatively small part of Tesco's business, accounting for approximately 32.5 per cent of its selling space and an estimated 17 per cent of its total turnover. However, they are proving to be of key strategic importance for the retailer.
Senior business analyst, Anne Bordier, said: "The hypermarket has emerged as the most powerful format to achieve organic growth in fast-growing, emerging markets. It is now considered an essential format for leading international retailers, as it is easy to export, helps spread best practice and enables diversification."
For further information please contact Jane Beard. Tel: +44 (0) 1923 851910, mobile 07770 640448 or Catherine Ellwood. Tel: +44 (0) 1923 851916.