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Retail Growth: Tesco vs. Sainsbury's

This document summarizes an article that compares the growth strategies of Tesco and Sainsbury's, two large UK retailers, between 1990-2008. It notes that Tesco pursued a broad set of initiatives including diversifying into non-food products, financial services, and telecommunications. This allowed Tesco to surpass Sainsbury's as the UK's largest retailer by market share in 1995. In contrast, Sainsbury's was unable to keep pace with Tesco's growth. The document examines how and why Tesco was so successful in its strategic expansion while Sainsbury's fell behind.

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159 views2 pages

Retail Growth: Tesco vs. Sainsbury's

This document summarizes an article that compares the growth strategies of Tesco and Sainsbury's, two large UK retailers, between 1990-2008. It notes that Tesco pursued a broad set of initiatives including diversifying into non-food products, financial services, and telecommunications. This allowed Tesco to surpass Sainsbury's as the UK's largest retailer by market share in 1995. In contrast, Sainsbury's was unable to keep pace with Tesco's growth. The document examines how and why Tesco was so successful in its strategic expansion while Sainsbury's fell behind.

Uploaded by

anushan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Tesco versus Sainsbury's: Growth Strategies and Corporate Competitiveness

Article · January 2011

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2 authors:

Markus Kreutzer Christoph Lechner


EBS Universität für Wirtschaft und Recht University of St.Gallen
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Tesco versus Sainsbury's: Growth Strategies and
Corporate Competitiveness
Markus Kreutzer & Christoph Lechner

In 2008, the UK-based international food and general merchandising retailer


Tesco reached a market share of about 30% in the UK, roughly the same as its
rivals Sainsbury’s and ASDA combined. Tesco has greatly diversified, extending
its business lines from food into non-food, clothing, financial services, and
telecommunications. It ranks sixth in the international retail market behind
Wal-Mart (US), Carrefour (France), Home Depot (US), Metro (Germany), and
Royal Ahold (Netherlands).
Tesco was not always the dominant player it is today. In 1990, it was a mid-
sized food chain far behind its rival, Sainsbury’s. Starting in the 1990s, it
pursued a broad set of growth initiatives, steadily increasing its market share
and gaining importance. In 1995, Tesco surpassed Sainsbury’s to become the
UK's market leader. Today, Tesco is the clear market leader. How did that
happen? Why was Tesco so successful in growing sales and profits, while
Sainsbury’s could not keep pace? Where did the competitive actions of these
firms differ? Let us start with a close look at their origins.

Schlagwörter (Tags) case study, corporate competitiveness, RoCC,


growth, retailin, food, diversification, alliances, M&A
Typ Buchkapitel (Englisch)
Buchtitel Strategic Management: Competitiveness &
Globalization: Concepts and Cases
Erscheinungsdatum 2011
Verlag Cengage Learning (London)
ISBN 978-0538753111
Seite(n) 377-393

Forschungsplattform Alexandria
https://www.alexandria.unisg.ch | 01.06.2013

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