Tesco: The Only Way Is Up

Date Posted: 21 August 2008

Tesco, the supermarket with the biggest market share in the UK, aspires to conquer the Indian market. The supermarket chain has said that it plans to invest £60m in opening a wholesale cash-and-carry business based in Mumbai. Furthermore, it signed a deal with Trent, (the Tata group’s retail arm) to develop its hypermarket operations.

The announcement came only a few days after Tesco said that it is going to extend its range of services in the UK, including a plan to grow its share of financial products such as home insurance. Tesco’s initial plan for this is to launch basic bank accounts.

BrandIndex doesn’t show a significant change in the scores for Tesco; however the brand is seeing a positive trend in its ‘Buzz’ scores over time. ‘Buzz’ improved by 10% during the last 4 weeks, jumping from -4% to 6%.

Corporate scores for the brand however, do not show as much improvement as one might expect. In fact, Tesco saw a drop in Corporate scores (from 10% to 7%) at the end of July, though there has been an improvement in scores since the 29th July.

Tesco's dominance of the sector is seen by many as a result of a successful business model, whose results have come to fruition.

Agi Zabo, BrandIndex Research Executive

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