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Tesco's pledge: we will double in size
Jonathan Prynn21 Apr 2009
TESCO said today it plans to double in size every decade as its profits smashed through the £3 billion barrier.
It now has 1,770 stores in Britain, including about 250 in London, and said it would not slow down its relentless expansion despite the recession.
Tesco hopes to add between six and seven per cent more shop floor space every year, roughly equivalent to doubling every 10 to 12 years.
The claim came as Tesco surpassed City forecasts with a 10 per cent rise in annual profits to £3.128 billion and a 15 per cent surge in sales to £59.4 billion, the first time it has taken more than £1 billion a week.
This year, the world's third largest retailer will open a further 15 “Extra” hypermarkets, 10 superstores, four Metro outlets, three Homeplus stores and 200 local Express shops, bringing the total under the Tesco brand in Britain to around 2,000. If other shops that it owns but are not Tesco branded are included, the total will be 2,498.
Campaigners said they were horrified by the pace of Tesco's growth. Helen Rimmer of Friends of the Earth said: “As Tesco tills around the country ring with record takings, we need to ask who pays for Tesco's billions?
“There is growing evidence that the Tesco takeover is harming farmers, consumers and the environment.
“The Government must bring in stronger planning rules to support thriving town centres and local economies, and a supermarket watchdog to ensure a fair deal for farmers.”
Andrew Simms, author of “Tescopoly”, said: “We're living in a period that has very powerfully demonstrated what can go wrong when a handful of very large, poorly regulated institutions dominate a vital industry.
“We saw it in banking with devastating consequences. The regulators are just are sitting there and hoping that the same disasters don't happen with the supermarket sector.”
Tesco chief executive Sir Terry Leahy said: “I am confident Tesco will continue to make good progress even in the current economic environment.”
He said he hoped the worst of the downturn was over but added: “I think it's too early to forecast when an upturn will come.”
Reader views (38)
Some people moan about Tesco and how it making all this money, well have you ever thought to what happens to all of Asda (who are part of Wal-Mart-the worlds biggest retailer) and how they actually get these prices low, buy offering suppliers low take it or leave it prices and then their Post-tax profits leave the UK economy as an withrawal of money from the ecomomy to go to american owners which they then spend in america, thus supporting the american economy and not the Uk economy!!!!
- Joe Bloggs, Manchester, 12/08/2009 22:43
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Why do we always knock success, Tesco is a fantastic advert for how to run a business. Would we rather foreign firms like Asda take all the profits out of the UK rather than a global Tesco bringing income and jobs into the UK.
Stop moaning and applaud a successful company that obviously does what the consumer wants.
- Michael Reeve, london, England, 12/08/2009 21:43
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If I go out of my front door there is a Tescos to the left - and to the right - and another Tescos a little further down the road. Those three Tescos have killed off countless independent shops (butchers, greengrocers, bakers and smaller convenience stores), they are all boarded-up. Nobody wants to rent or buy those deteriorating premises.
Tesco is NOT cheap. For example: 2.2litres of fresh milk in Tesco is GBP1.53p. A better quality 2.2litres of fresh milk in ICELAND is GBP1.25p.
I will NEVER shop in Tesco. Asda is far better value and the shopping is delivered mainly without charge.
I resent Tesco ripping-off Joe Public to the tune of GBP3,100,000,000 in one year.
- Reuben Camara, Morecambe UK, 12/08/2009 21:43
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The quality of the food bought in Tescos is not half as good as that bought in equivalent Italian supermarkets - allegedly of course.
- Mark, Venice, Italy, 12/08/2009 21:43
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Why don't we just go the whole hog and let Tesco's run the country.Abolish Parliament,sack the polititians and bankers and reemploy them as shelf fillers.Rebrand the UK as Tesco PLC and give all citizens-sorry customers-a loyalty/ID card. Sorry,that's just my twopence worth,but then every little....blah,blah,blah.
- Victor, essex,Great(sic) Britain, 12/08/2009 21:43
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Why dont we just go the whole hog and let Tesco's run the country.Abolish Parliament,sack the polititians and bankers and reemploy them as shelf fillers.Rebrand the UK as Tesco PLC and give all citizens-sorry customers-a loyalty/ID card. Sorry,that's just my twopence worth,but then every little....blah,blah,blah.
- Victor, essex,Great(sic) Britain, 12/08/2009 21:43
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i buy food at marks its better quality than the big three, and their still in the high street.
- Paul Culver, basildon uk, 12/08/2009 21:43
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If Aldi or Lidl were to say that they planned to double in size, everyone would be saying "good on them".
But because its Tesco, a British company paying dividends into YOUR pension scheme, it is somehow inherently bad.
People need to wake up and praise a successful British company. Its not as if they pay huge bonuses to their top staff. Even their headquarters is in the sticks and memorably unimpressive.
Their expansion will probably be in other countries, and I was impressed and surprised to find a large Tesco store in Prague last year.
- George, London, 12/08/2009 21:43
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The question is, who is allowing this arrogant company to take a stranglehold on the market? Tesco is a cancer, set free in the market place. Greedy people, wanting cheap deals, without examining the cost to suppliers, produce,livestock and steamrolled and flattened small businesses.
Do we wake up when the cancer can't be treated? When we all dawn Tesco uniforms and paint the outside of our homes in Tesco colours and there is nowhere else go but Tesco? What a truely stupid Nation we are? Tesco takes over the market and we don't even bleat! Government after Government gives more and more of our country to the EU and we don't even sigh! tesco walks over farmers, small businesses? Wake up Britain...ask a question or two!
- Maria, London, 12/08/2009 21:43
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Michael Reeve, London, “Why do we always knock success”...I suppose that entirely depend on how you measure success... If you measure it by means of the simple capitalistic objectives (profit at any cost) then yes they are wonderful.. if you want to take into consideration things such as ‘local community’, ‘small business’, ‘social cohesion’ then they are not so good... are they..?
- Ade, London, 12/08/2009 21:43
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To all of the Tesco whingers - no-one is frogmarched into a Tesco store and forced to buy goods there. Tesco are successful because they provide a service that people want to use and at a price that suits their budget. If that ever changes then they will not succeed and they will have to think again. Too many people in this country envy success and yet many of those same people are hypocritical in their views.Tesco are to be commended for running a successful business.
- Dc, London, 12/08/2009 21:43
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The Tesco express are very expensive so if they're able to expand like they're doing why aren't the cutting their prices like they advertise....never shopped in the bigger Tescos as there's none close enough to me but there's lots of the express ones.... so would be interested to know how they can say every little helps...
- Sarah, London, 12/08/2009 21:43
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Tesco isn't going to double in size within the UK. Here, it's already got about a third of the market, and the monopolies regulations won't let it get bigger than that. Quite right, too.
However, Tesco has the rest of the world to expand into, and is proving quite adept as a global supermarket chain, albeit still small compared to Wal-Mart and Carrefour. I wish them well with their goal of doubling in size globally: an on-going Great British success story.
- Nigel, London, 12/08/2009 21:43
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When we are cornered by everyone, squeezing us for every penny we have, we have to shop at a budget and Tesco is competative. I try and support local shops as much as I can, but with salary cuts and rising prices I cannot afford to keep doing so. I may be considered very selfish by most of you, but quite frankly I admit to looking out for my family first, and don't see anything wrong with that. Good for Tesco for doing so well despite the recession. Yes, its always at a cost to others, but only those who are priveleged enough to have surplus cash at this time can afford to be on their soapbox about this.
- Smb, London, UK, 12/08/2009 21:43
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Tesco a cancer?! I think that is a inappropriate at best and at worst almost libalous. No one has died working for Tesco or shopping at Tesco and yet your over dramatic euphamism Maria would imply this. I agree with DC on his sentiments. Yes there is an issue with how they manage the farmers and the production of food but if we are all such a "Stupid nation" as you put - you are part of that nation so why don't you depart for other shores?
- Andrew, St. John's Wood, London, 12/08/2009 21:43
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Tesco, and others of that ilk, have put hundreds of smaller shops out of business. Both my favourite independant booksellers and record store have gone to the wall because they had to pay more for stock that what the supermarkets sell it for! As they tend just to stock the top 50/100 this limits choice and dumbs everything down. After taking sales from our local chemist he was left to provide the service on Easter Sunday as the supermarkets never take their turn on the 'shutdown' bank holidays. It is time to act against this shopping domination!
- Michael, London, 12/08/2009 21:43
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Now that they have self service tills, I presume that the next profit making wheeze will be to get the customers to stack their shelves for them.
- Dee Jay, Fleet Hampshire, 12/08/2009 21:43
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Boycott the supermarkets!
Shop at local farmer's markets or grow your own fruit and veg to SAVE THE WORLD!
- Vikki, Canterbury, Kent, 12/08/2009 21:43
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What's the idiom again? "Pride comes before a fall" isn't it? Where do they think these extra shoppers are going to come from? I don't know anyone who shops in Tesco, not because of the prices, not because of the ethics, just because the shopping experience is something akin to Dante's Inferno.
- Bob, Cheam, 12/08/2009 21:43
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Double in size?. God help us: they have put quite enough small businesses in the high street out of business already, with their ability to reduce prices thanks to their buying power. Soon there will be just Tescos and a fast food joint in every High Street - everything else will be knocked down for yet more "luxury apartments".
According to another well known supermarket they "cut 4213 prices each week, while Tescos "only" cut 1,255 - the figures vary week by week). I have to say as I go to the "4 thousand-and-whatever-number-they-tack-on-each week, everything I buy (and they are the usual basics and essentials) seem to go UP rather than down.
- Graham, Ilford Essex, 12/08/2009 21:43
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How has Tesco's managed this in the middle of current economic situation?
The answer is simple, they have screwed their suppliers to the floor. The monpoly supermarkets are destroying the British food supply industry in order to carry on growing their own profits, regardless of what's happening in the real world. This really is not good for British jobs or the overall economy.
- Stephen, London, 12/08/2009 21:43
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Doesn't the word Pledge infer something positive - what is positive about Tesco's doubling in size? It is offensive that they have opened in places like Phuket let alone opening a shop on every street corner stripping us of local shops who can't afford to compete. I can think of nothing worse than shopping at Tescos and go anywhere else even if it means paying more.
- Kaye, London, 12/08/2009 21:43
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Tesco will soon need it's own dedicated regulator.
- Alan In Bow, London, 12/08/2009 21:43
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This sort of thing should never have been allowed, they've sucked the life out of the local economy in every town and you wonder why? There's 3 Tescos in 5 square miles in my area, their goods are cheap and tacky and made in china by 5 year olds for almost nothing and then they spout off about how much money they've made by being competitive, perhaps they should call it 'Chinco'. People who shop at Tesco should be ashamed!
- Paul, GB, 12/08/2009 21:43
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Actually, thats not a bad idea Victor from Essex.
Let Tesco run the country and maybe our MPs can buy the cheap "striped" range when kitting out their 2nd homes.
- Simon, London, 12/08/2009 21:43
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"Every little helps"
Every little what?
- Toby Webster, Ongar, England, 12/08/2009 21:43
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Please can we also put some blame on the councils who make parking in town centres impossible and/or hugely expensive, thereby forcing people to use out of town supermarkets to shop
- William Edwards, London, 12/08/2009 21:43
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The bigger they are; the harder they fall.
- Mickyinlondon, london, 12/08/2009 21:43
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OK, hands-up everyone: who would have preferred Tesco to have run the economy for the last decade instead of Nu Labour?!
- Roz, France, 12/08/2009 21:43
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Clone town, coming to a high street near you! But I suppose the millions of sheep, brainwashed by mainstream advertising, need somewhere to shop.
I will, however, continue to buy local and from independant stores.
- Jock, London, 12/08/2009 21:43
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I like Tesco. It offers good stuff at a good price.
Plus it keeps the riff-raff out of my Waitrose.....
- Simon, London, 12/08/2009 21:43
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One word for tescos: Overstretch. tescos is already over saturating the market with tooo many stores. Secondly they are pushing into areas that are not its expertise or domain (insurance, credit cards, phone's etc). This in turn leads to the company abandoning tis core business of food and groceries.
You will start to see that Leary has bitten off more than he can chew and that in all proability they are fiddling their accounts with all that off shore tax dodging skull duggery.
- Sebastian, Brent, 12/08/2009 21:43
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What a fantastic British company.This is an organization
that can show the rest of the world's businesses how to provide a service to millions of shoppers every week. It is superbly controlled at every level of management; pays the top salaries to ensure it has the best players and is a company we should be proud of in this country and not continuously knocking. It is a question of open management; competent middle management expressing their ideas which the top Directors are willing to listen to. If you don't like Tesco then why do you shop there ???? If only the management of Tesco ran this country we would be Great again.
- David, bromley,kent, 12/08/2009 21:43
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"the next profit making wheeze will be to get the customers to stack their shelves for them"
That's not far enough!
What about collecting your shopping right from the back of their trailers in the car park?Imagine what Tesco's profits would be with no shop and no staff.
- John Smith, Londonistan, EUSSR, 12/08/2009 21:43
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Could all you people (jock and Michael etc)who are shopping at 'independant' stores, ask those shopkeepers do they sell dictionaries. Buy one from these shops then learn to spell 'independent' properly. Thank you.
Oh and whoever described Tesco as a cancer - catch a grip of yourself please...bad choice of analogy
- Dc, London, 12/08/2009 21:43
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I strongly disapprove of such a behemoth running rampant through our high streets. Do we really want dictatorship of the shopping basket. I don't think so. It does none of us any good - consumers, producers, town centres. Shop at Tescos if you want to. I wouldn't touch it if it was the last shop on the planet.
- Carole Woddis, London, 12/08/2009 21:43
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Let the Tesco policy maker (high up) join the IMF and world bank to run the business. Please provide technical and financial consulation to the financial trouble countries i.e Pakistan India Siri Lanka etc.
Excellent perfornamce in such a critical time. Financial crunch is only drama just to frightened the peoples or it is international game by policy makers.
God helps us. Best wishes to Tesco.
- M A Sular, London, 12/08/2009 21:43
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At this rate Britain will need to be re-branded and simply called "Tesco" or "Tescoland".
With all local shops disappearling shortly, how long will it be before Tesco take over the govenment (i.e. running the country), the police, education, etc etc.
Of course, like their "own brand" family shortcrust mince pies (meat) their "quality" may be extremely questionable BUT hey, at least it will be profitable, right?
- Fraser, Telford Park, 12/08/2009 21:43
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