Tesco is struggling to find new avenues for growth on home turf and is scaling back some of its international plans, especially in a recession-scarred Europe
*UK stores
*
As the UK's biggest supermarket, Tesco is struggling to find new avenues for growth on home turf. Shoppers are no longer keen on the large hypermarkets that Tesco has done so much to develop, so it was forced to write off £804m of property assets and admit that nearly half of its long-famed pipeline of development land was now surplus to requirements. Profits slid 8.3% in the UK last year as Tesco focused on opening its local convenience stores and tried to tempt shoppers back to its biggest outlets with price cuts and investment in warmer, brighter interiors. This year it plans up to 160 new convenience stores and will continue to revamp bigger stores after years of under-investment, partly with the help of eateries such as recent acquisition Giraffe and coffee chain Harris + Hoole.
*Online
*
The internet is important to Tesco as one of the few areas of retail enjoying rapid growth. Online grocery sales rose 12.8% to £3.2bn last year and Philip Clarke was keen to stress how important a multi-channel presence is for the business. Tesco now has five "dark stores", where employees assemble customers' online orders, to serve its web business. A sixth opens later this year. However, the non-food website Tesco Direct suffered as sales of electrical products were squeezed by competition from the likes of Amazon, while Clarke admitted that Tesco's in-store displays of electricals were not up to scratch.
*Bank
*
Tesco began trialling banks in its stores in 2006 and said it hoped to offer current accounts from 2009. It has since expanded into mortgages, insurance and credit cards, but the current account is not set to arrive until 2014. Meanwhile, revenues at the bank slid 2.2% to £1bn and profits dived 15.1% last year as Tesco took a £115m hit from PPI mis-selling.
*Tesco's overseas ventures*
*China*
*Launched 2004*
*Number of stores: 131( incl 117 hypermarkets) *
*Revenues: £1.4bn*
Three years ago Tesco said it wanted to open 80 shopping mall developments in China by 2016, amounting to 40m sq ft of floorspace- bigger than its UK estate. Today it has just over 10m sq ft and recently announced the closure of five under-performing hypermarkets.Its plan for shopping malls has not proved as popular as it hoped and it aims to "refocus on a more profitable approach" in the country. Still, China remains "strategically important" to Tesco. It opened 12 new hypermarkets last year and will launch online groceries in Shanghai later this year, with ambitions to go to up to 50 cities.
*India*
*Launched 2008*
*Number of stores: 0 *
*Revenues: £57m*
Tesco set up a wholesale business and provides 70% of the products used in the Star Bazaar hypermarket chain owned by the Tata group. It had planned to be in the country when law changes allowed foreign retailers to open up – but a change in government strategy continues to face delays and the business is tiny. Total sales growth fell back to 25%, in local currency, from 40% last year. Tesco says it wants to "refocus on a more profitable approach to growth"
*Malaysia*
*Launched 2002*
*Number of stores: 47*
*Revenues: £937m (up 6%)*
Tesco is Malaysia's biggest operator with 11% market share via a partnership with local group Sime Darby. It is one of only three countries where Tesco saw underlying sales growth last year (0.5%).
*South Korea (Homeplus) *
*Launched 1999*
*Number of stores: 520 (inc 133 hypermarkets)*
*Revenues: £5.3bn (no growth)*
Tesco is the second largest grocer in South Korea, its biggest and most successful overseas business. Its Homeplus chain, has proved a hotbed of innovation, developing 'virtual' stores which allow shoppers to buy items displayed on subway walls via their phones and cultural centres where locals can take classes in everything from the cello to French. Korea is one of three countries where Tesco plans to focus capital investment, but sales have taken a battering since the South Korean government restricted Sunday trading hours in a bid to protect small stores. Tesco said the new laws cost £100m of profits last year and expects a £30m-£40m hit this year as restrictions continue.
*Thailand (Tesco Lotus) *
*Launched 1998*
*Number of stores: 1,433 (inc 149 hypermarkets)*
*Revenues: £3.7bn*
Thailand was Tesco's fastest growing market in 2012 with sales up 16% in total and 3.1% when the impact of new store openings is stripped out. The supermarket controls 15% of Thailand's grocery market making it the country's biggest player. Online groceries launched in Bangkok in February and the company says this is one of three international markets where it will focus international investment.
*Japan*
*Launched 2003*
*Number of stores: was 121 – all now sold*
One of chief executive Philip Clarke's first major decisions on starting work was to pull out of Japan where the British grocer had struggled to compete in the notoriously tricky market. Tesco was forced to pay local group Aeon £40m to take its loss-making Japanese business off its hands last year and only managed to finally extract itself earlier this year.
*Czech Republic*
*Launched 1996*
*Number of stores: 376*
*Revenues: £1.35bn*
Tesco is focusing on the internet and almost halting new store openings. Last year it launched an online grocery service and snapped up the Zabka and Koruna chains three years ago. It has begun reducing the size of its largest stores by renting out space to retailers like C&A and Sports Direct. One of the markets worst affected by the economic crisis with four consecutive quarters of declining GDP. Sales fell back 2% last year or 7%. Still Tesco opened seven hypermarkets there last year, and 40 other shops.
*Hungary*
*Launched 1995*
*Number of stores: 216*
*Revenues: £1.8bn*
Growth stalled completely last year and profits were held back after the government imposed a crisis spending tax three years ago. It was Tesco's first international business . The supermarket is now market leader but opened just one new hypermarket last year and plans for more are on hold.
*Poland*
*Launched 1996*
*Number of stores: 446*
*Revenues: £2.2bn*
Tesco says it has no plans for more hypermarkets and is focusing on expanding its online business. Sales slipped back 4% once the impact of new store openings is stripped out. Poland as a whole saw consumer spending slip back in the fourth quarter.
*Republic of Ireland*
*Launched 1997*
*Number of stores: 139*
*Revenues: £2.4bn*
Tesco now claims to be Ireland's leading grocer. No major new stores are planned as consumer spending has been hit by austerity measures. Tesco didn't open any hypermarkets there last year and only five small stores. Underlying sales slipped back 1% as austerity measures continue to bite.
*Slovakia*
*Launched 1996*
*Number of stores: 126*
*Revenues £1.1bn*
Slovakia is now home to Tesco's international clothing division, providing non-food stock to all the supermarket's central European stores. Tesco says it sees Slovakia as one of its strongest positions. Sales rose 6% last year but underlying sales fell 1%. The country is facing serious economic difficulties and is a small market.
*Turkey (Kipa)*
*Launched 2003*
*Number of stores: 191 (inc 56 hypermarkets)*
*Revenues £745m*
After 10 years in Europe's most eastern country, Tesco has been forced to scale back its ambitions dramatically. It has dropped plans to open large stores in the East of the country amid intense cost inflation and tough competition. Total sales rose 13% last year but underlying sales were flat and the business made a loss amid high cost price increases.
*USA (Fresh & Easy)*
*Launched 2007*
*Number of stores: 199*
*Revenues: £700m*
Tesco said it wanted 1,000 stores across the west coast of the US when it launched its Californian offshoot in November 2007. It booked a loss of £1.2bn on the business, including trading losses for the current year of £169m, as Tesco confirmed it was quitting the country. Early mistakes such as automatic tills and ready meals were a turn-off for American shoppers. Reported by guardian.co.uk 16 hours ago.
*UK stores
*
As the UK's biggest supermarket, Tesco is struggling to find new avenues for growth on home turf. Shoppers are no longer keen on the large hypermarkets that Tesco has done so much to develop, so it was forced to write off £804m of property assets and admit that nearly half of its long-famed pipeline of development land was now surplus to requirements. Profits slid 8.3% in the UK last year as Tesco focused on opening its local convenience stores and tried to tempt shoppers back to its biggest outlets with price cuts and investment in warmer, brighter interiors. This year it plans up to 160 new convenience stores and will continue to revamp bigger stores after years of under-investment, partly with the help of eateries such as recent acquisition Giraffe and coffee chain Harris + Hoole.
*Online
*
The internet is important to Tesco as one of the few areas of retail enjoying rapid growth. Online grocery sales rose 12.8% to £3.2bn last year and Philip Clarke was keen to stress how important a multi-channel presence is for the business. Tesco now has five "dark stores", where employees assemble customers' online orders, to serve its web business. A sixth opens later this year. However, the non-food website Tesco Direct suffered as sales of electrical products were squeezed by competition from the likes of Amazon, while Clarke admitted that Tesco's in-store displays of electricals were not up to scratch.
*Bank
*
Tesco began trialling banks in its stores in 2006 and said it hoped to offer current accounts from 2009. It has since expanded into mortgages, insurance and credit cards, but the current account is not set to arrive until 2014. Meanwhile, revenues at the bank slid 2.2% to £1bn and profits dived 15.1% last year as Tesco took a £115m hit from PPI mis-selling.
*Tesco's overseas ventures*
*China*
*Launched 2004*
*Number of stores: 131( incl 117 hypermarkets) *
*Revenues: £1.4bn*
Three years ago Tesco said it wanted to open 80 shopping mall developments in China by 2016, amounting to 40m sq ft of floorspace- bigger than its UK estate. Today it has just over 10m sq ft and recently announced the closure of five under-performing hypermarkets.Its plan for shopping malls has not proved as popular as it hoped and it aims to "refocus on a more profitable approach" in the country. Still, China remains "strategically important" to Tesco. It opened 12 new hypermarkets last year and will launch online groceries in Shanghai later this year, with ambitions to go to up to 50 cities.
*India*
*Launched 2008*
*Number of stores: 0 *
*Revenues: £57m*
Tesco set up a wholesale business and provides 70% of the products used in the Star Bazaar hypermarket chain owned by the Tata group. It had planned to be in the country when law changes allowed foreign retailers to open up – but a change in government strategy continues to face delays and the business is tiny. Total sales growth fell back to 25%, in local currency, from 40% last year. Tesco says it wants to "refocus on a more profitable approach to growth"
*Malaysia*
*Launched 2002*
*Number of stores: 47*
*Revenues: £937m (up 6%)*
Tesco is Malaysia's biggest operator with 11% market share via a partnership with local group Sime Darby. It is one of only three countries where Tesco saw underlying sales growth last year (0.5%).
*South Korea (Homeplus) *
*Launched 1999*
*Number of stores: 520 (inc 133 hypermarkets)*
*Revenues: £5.3bn (no growth)*
Tesco is the second largest grocer in South Korea, its biggest and most successful overseas business. Its Homeplus chain, has proved a hotbed of innovation, developing 'virtual' stores which allow shoppers to buy items displayed on subway walls via their phones and cultural centres where locals can take classes in everything from the cello to French. Korea is one of three countries where Tesco plans to focus capital investment, but sales have taken a battering since the South Korean government restricted Sunday trading hours in a bid to protect small stores. Tesco said the new laws cost £100m of profits last year and expects a £30m-£40m hit this year as restrictions continue.
*Thailand (Tesco Lotus) *
*Launched 1998*
*Number of stores: 1,433 (inc 149 hypermarkets)*
*Revenues: £3.7bn*
Thailand was Tesco's fastest growing market in 2012 with sales up 16% in total and 3.1% when the impact of new store openings is stripped out. The supermarket controls 15% of Thailand's grocery market making it the country's biggest player. Online groceries launched in Bangkok in February and the company says this is one of three international markets where it will focus international investment.
*Japan*
*Launched 2003*
*Number of stores: was 121 – all now sold*
One of chief executive Philip Clarke's first major decisions on starting work was to pull out of Japan where the British grocer had struggled to compete in the notoriously tricky market. Tesco was forced to pay local group Aeon £40m to take its loss-making Japanese business off its hands last year and only managed to finally extract itself earlier this year.
*Czech Republic*
*Launched 1996*
*Number of stores: 376*
*Revenues: £1.35bn*
Tesco is focusing on the internet and almost halting new store openings. Last year it launched an online grocery service and snapped up the Zabka and Koruna chains three years ago. It has begun reducing the size of its largest stores by renting out space to retailers like C&A and Sports Direct. One of the markets worst affected by the economic crisis with four consecutive quarters of declining GDP. Sales fell back 2% last year or 7%. Still Tesco opened seven hypermarkets there last year, and 40 other shops.
*Hungary*
*Launched 1995*
*Number of stores: 216*
*Revenues: £1.8bn*
Growth stalled completely last year and profits were held back after the government imposed a crisis spending tax three years ago. It was Tesco's first international business . The supermarket is now market leader but opened just one new hypermarket last year and plans for more are on hold.
*Poland*
*Launched 1996*
*Number of stores: 446*
*Revenues: £2.2bn*
Tesco says it has no plans for more hypermarkets and is focusing on expanding its online business. Sales slipped back 4% once the impact of new store openings is stripped out. Poland as a whole saw consumer spending slip back in the fourth quarter.
*Republic of Ireland*
*Launched 1997*
*Number of stores: 139*
*Revenues: £2.4bn*
Tesco now claims to be Ireland's leading grocer. No major new stores are planned as consumer spending has been hit by austerity measures. Tesco didn't open any hypermarkets there last year and only five small stores. Underlying sales slipped back 1% as austerity measures continue to bite.
*Slovakia*
*Launched 1996*
*Number of stores: 126*
*Revenues £1.1bn*
Slovakia is now home to Tesco's international clothing division, providing non-food stock to all the supermarket's central European stores. Tesco says it sees Slovakia as one of its strongest positions. Sales rose 6% last year but underlying sales fell 1%. The country is facing serious economic difficulties and is a small market.
*Turkey (Kipa)*
*Launched 2003*
*Number of stores: 191 (inc 56 hypermarkets)*
*Revenues £745m*
After 10 years in Europe's most eastern country, Tesco has been forced to scale back its ambitions dramatically. It has dropped plans to open large stores in the East of the country amid intense cost inflation and tough competition. Total sales rose 13% last year but underlying sales were flat and the business made a loss amid high cost price increases.
*USA (Fresh & Easy)*
*Launched 2007*
*Number of stores: 199*
*Revenues: £700m*
Tesco said it wanted 1,000 stores across the west coast of the US when it launched its Californian offshoot in November 2007. It booked a loss of £1.2bn on the business, including trading losses for the current year of £169m, as Tesco confirmed it was quitting the country. Early mistakes such as automatic tills and ready meals were a turn-off for American shoppers. Reported by guardian.co.uk 16 hours ago.