1. Introduction
The main purpose of this report is to determine the importance of the Location in retailing. It includes an analysis of Tesco and Corner Shop locations by taking into account all the factors of well chosen place for retail store as well as current situation on the Market. Report discusses the role location played in the success of those retailers. It also tries to assign the importance of the Location in comparison to other elements of the retail Marketing Mix.
2. Background
2.1 Tesco Profile:
Tesco plc is a UK-based international grocery retail chain. Tesco now controls just over 30% of the grocery market in the UK. The operating profit of the group was £2,648 million 2007, recording 16.1% increase over 2006 .
source: TNS Worldpanel
With share of around 31, 55% of the Grocery Market in the UK, which is approximate to the combined share of its main competitors – Asda(16,60%) and Sainsbury(16,22%), Tesco is a definite Market leader .
2.2 Tesco Metro:
First ‘Tesco Metro’ has been opened in 1992 and are usually located in the town and city centre locations (http://www.tescocorporate.com/page.aspx? pointerid=3DB554FCAE344BD88EEEEFA63D71B831). They are usually smaller than ordinary ‘Tesco’ store but bigger than Tesco Express with the size varying between approximately 7,000 to 15,000 sq.ft.
3. Strategy
Tesco’s slogan - ‘Every little helps’ relates to the constantly improving staff service. Their core purpose is to ‘create value for customers to earn their lifetime loyalty’ (http://www.tescocorporate.com/ourcorepurpose.htm). Tesco is emphasizing the role of the staff in delivering its values to the customers. They are obliged to do the hardest effo ...