Tesco PLC is a multinational retailer that primarily operates supermarkets, hypermarkets, and convenience stores. The company's core business model revolves around the procurement, distribution, and sale of groceries, fresh food, and general merchandise to consumers. Tesco generates the vast majority of its revenue from its retail operations in the United Kingdom and the Republic of Ireland, which account for over 90% of its total sales. The company also maintains a significant presence in Central Europe, with operations in the Czech Republic, Hungary, and Slovakia.
Tesco's retail formats range from large-scale Tesco Extra hypermarkets, which offer a comprehensive selection of food, clothing, electronics, and household goods, to smaller Tesco Express convenience stores designed for quick, local shopping. The company has also built a robust online grocery delivery and click-and-collect platform, capturing a substantial share of the digital retail market. In addition to its consumer-facing retail business, Tesco operates Booker Group, a major food and drink wholesaler in the UK that serves caterers, independent retailers, and restaurants.
A distinctive element of Tesco's competitive position is its Clubcard loyalty program, which boasts millions of active members. This program not only drives customer retention but also fuels dunnhumby, Tesco's wholly-owned data science and analytics subsidiary, which monetizes consumer insights by partnering with consumer packaged goods brands. In 2024, Tesco announced the strategic sale of its retail banking operations to Barclays, allowing the company to refocus its capital and operational efforts entirely on its core grocery and retail businesses.
