Tesco executives adopted the 'street corner' strategy (i.e. more Tesco Express convenience stores) as the key to continued growth in core UK sales. This takes advantage of a major shift in food consumption patterns .Tesco's sparkling growth has come at the expense of rivals, especially Sainsbury and Safeway, both of whom are battling to keep customers. The other UK supermarkets simply cannot compete on both price and range of different store formats. Tesco's UK stores are divided into five formats, differentiated by size and the range of products sold. That is super stores, metros, express, one stop and homes plus. Superstores are large super market, stocking groceries and a much smaller range of non-food goods than Extra stores. Most are located in suburbs of cities or on the edges of large and medium-sized towns. Tesco Metro stores sized between Tesco superstores and Tesco Express stores. They are mainly located in city centres, the inner city. Tesco Express stores are neighbourhood convenience shops, stocking mainly food with an emphasis on higher-margin products alongside everyday essentials. They are found in busy city centre districts, small shopping precincts in residential areas, small towns. One Stop is 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. Tesco home plus offer all of Tesco's ranges except food in warehouse-style units in retail parks
Tesco's success in recent years has mainly come from expanding overseas, shifting to 'higher margin' non-food merchandise and maintaining a strong UK core business. Its UK success has been built on slow prices, cultivating customer loyalty, offering a range of different store concepts and expanding into retailing services, such as banking and insurance. Tesco's focus on non-food items has led some to wonder whether it is fair to compare Tesco with the other grocery retailers at all, as it seems to have become a consumer goods company. As Tesco is so large and successful, it can afford to cut prices largely than many of its rivals. Tesco Personal Finance has proved a big success as one of Europe is fastest growing financial service providers. Besides their in store TV advertising for products is available in Tesco more than 300 largest stores
Great opportunity is for Tesco and other transnational supermarkets in the coming years if they concentrate on improving the efficiency of their supply chains, driving productivity initiatives and increasing sales volumes, targeting non-food sales, corporate merger and acquisition activity and developing their multi-faceted trading strength
Tesco ensures high standards and good conditions in the country. Tesco is continuing to expand on the high street raising concern about its dominant position in the market. So far, the strategy has been a winner. As Tesco is not alone in, its mission to conquer the world it has a crucial stage at last Christmas in UK. However, a little failure doesn't seem to be affect the Tesco to a larger extend. As far as Tesco is concerned it mainly deals with market led strategy where more focus is on their customers.