Tesco's Ambitious Plans for UK Market Supremacy

Tesco, the UK's largest supermarket chain, has set its sights on expanding its market share in the non-food sector, with plans to increase its current 3% market share to 12% within the next eight or nine years. This aggressive strategy will put pressure on its competitors, including Asda, which is owned by Wal-Mart and has been experiencing a slowdown in market share growth over the past couple of years.

Key Takeaways:

• Tesco has set ambitious targets to increase its non-food market share to 12% within eight or nine years, four times its current market share.
• The company claims to have the most efficient stock control system among major food retailers globally.
• Tesco expects to achieve substantial growth in Central Europe and Asia, with its current seven-country portfolio contributing significantly to group earnings growth from 2001.
• The company's market rating is only half that of some European competitors, making it an attractive candidate for a potential bid approach.
• Tesco's spectacular growth will be driven by Central European and Asian markets, with group compound earnings growth expected to reach 15% or so.

Statistics:

• Current non-food market share: 3%
• Target non-food market share: 12%
• Growth in Central Europe and Asia: Significant contribution to group earnings growth from 2001
• Market rating: Only half that of some European competitors
• Projected group compound earnings growth: 15% or so

Sources:

• [Source: Tesco's internal targets, as mentioned in the text]
• [Source: Market share data, as mentioned in the text]
• [Source: Company financial data, as mentioned in the text]
• [Source: Market rating data, as mentioned in the text]