STORES giant Tesco will smash its own record this week when it unveils annual profits of more than £2.5 billion - almost £5,000 a minute.
Tesco, which collects £1 in every £7 spent on groceries in Britain, will reveal that providing everything from food to houses has led to the record amounts.
Over the next three years, the retailer plans to oversee the building of 2,000 homes, offering buyers a Tesco mortgage.
Tesco is even delving into education, suggesting shoppers use Clubcard loyalty points to pay for an Open University degree.
When Tesco updates shareholders in the City tomorrow, its chief executive, Sir Terry Leahy, will show how the business has increased sales from £39.4bn a year ago to an expected £42.7bn ... more than the gross domestic product of Peru.
Its latest profits figure compares with profits of £2.25bn last year.
Concern
Although Tesco is coming under increasing fire in Britain from pressure groups concerned that its march is turning Britain into a `one supermarket state', Sir Terry will argue its stores are a beacon for millions of Britons who trust in the goods it sells.
Clubcard enables Tesco to track the shopping habits of up to 13m families and be among the first to pick up on changing consumer behaviour.
Observers say that Tesco knows more about Britain's diet than the Food Standards Agency, the government watchdog.
The supermarket will reveal that the proportion of shoppers buying organic goods has increased by a third, to around 40 per cent over the past year, and that the largest part of that growth is among less affluent groups, who are now following the middle classes into the market. Sir Terry will say sales of organic ranges, which span everything from fruit and vegetables to meat, dairy and lemonade, are growing four times as fast as the rest of its business.
The supermarket believes the surge is linked to recent high profile food scares, such as the bird flu alert at a turkey manufacturer earlier this year.
It also thinks the heathy-eating message is hitting home, against a backdrop of widespread concerns about the country's problem with obesity.
China
Sir Terry, who has led Tesco for the past decade, is credited with transforming the retailer into one of Britain's most successful companies, planting its flag in 12 countries around the globe, including emerging markets such as China.
Its march across Britain, building a chain of nearly 1,800 stores, has dramatically changed the retail landscape with many local, independent shops closing in the wake of each new supermarket opening. Last year, it threw down the gauntlet to Argos, launching a rival catalogue and beefed-up website. In fashion, it has exploited every niche, from £4 jeans to a designer range from brand Florence & Fred.
It even persuaded Katharine Hamnett, a designer known for her ethical business philosophy, to design organic clothing for the supermarket. Tesco's market share is now roughly that of the combined number two and three, Asda and Sainsbury.
Comments
Login or Register to comment
I cannot undestand why so many people use Tesco. They are far from being the cheapest Supermarket. In fact my local shop has many items cheaper than Tesco. As for Tesco clubcard,what a con a single penny for every piund you spend,some deal.
we are reaping the rewards for our obsession with supermarkets aren't we. look at any of the towns in tameside, Hyde for example, once a thriving market town now just a row of (in no specific order) estate agents, take aways, indian restaurants, pubs and pound shops - where once we had butchers, grocers, bakers and other such shops - and a market that's dying on it's feet. Look at Ashton, how long is it since the market hall burnt down? Two years or more? still way off re-opening and in less than half that time Ikea built a small town sized store. what sort of towns are we leaving for our children? we really need a total rethink on what we are doing as we are well down the road of getting rid of town centres entirely.
Tescos !!! lets see if they get bought out in the near future; anyone been to the USA recently ! there are a number of retailers there that would be happy to purchase this company.
This store is NOT the cheapest but when the alternatives are going under; lets all pray to the great god 'TESCO' no doubt some people see it this way but as with the US dollar what goes up ALWAYS goes down.