星期三 Dec 20 2023 08:05
10 最小
Tesco Plc is one of the UK's leading multinational grocery and general merchandise retailers. It sits as the third-largest retailer in the world, measured by gross revenues. Since its inception in 1919, Tesco has continually evolved and expanded, demonstrating significant resilience amid retail sector disruptions and market challenges.
Tesco was founded by Jack Cohen in 1919 from a small East End of London market stall. Capitalizing on the end of World War I, Cohen started selling groceries and quickly grasped the potential of expansion.
The company’s name, Tesco, came from a shipment of tea Cohen bought in 1924 from T. E. Stockwell, and the first letters of Cohen’s surname. By the late 1920s, Tesco’s sales reached an equivalent of £1 million in today's money.
Cohen's first permanent indoor market stall appeared in Tooting in November 1930, followed by the inaugural Tesco store in September 1931 at Watling Street, Burnt Oak, Edgware, Middlesex.
The company debuted on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. Tesco's journey into self-service stores began in St Albans in 1956, and its first supermarket opened in Maldon the same year.
Through implementing influential retail concepts such as self-service shopping, Tesco surged success and opened its first supermarket in Maldon, Essex, in 1956. Over the decades, Tesco has expanded globally, crossing borders into 13 different countries.
Tesco operates a diverse range of formats including supermarkets, hypermarkets, and convenience stores. It is also a significant player in the world of online grocery retail.
The company attributes its success to a straightforward, customer-centric philosophy: to serve customers a little better every day. This philosophy informs its business strategy, which includes four key components:
Despite financial setbacks in the mid-2010s, Tesco has remarkably turned around its performance in recent years. The supermarket giant has adopted a stringent cost-saving strategy, refrained from overseas expansion and instead poured assets into their UK operations.
Recently, the COVID-19 pandemic presented new challenges to Tesco, with a rapid shift towards online shopping. Nevertheless, Tesco displayed impressive business resilience and agility, ramping up its online delivery capacity from 600,000 to 1.5 million slots a week and recruiting thousands of temporary workers to keep up with the demand.
Tesco is deeply committed to corporate social responsibility, with one of its strategic goals to be a Champion for Customers in helping them live healthier lives.
Tesco's "Little Helps Plan" involves making healthier choices more accessible, reducing food waste, sourcing sustainability, providing better job opportunities and treating people fairly in every community they serve.
Looking towards the future, Tesco is positioned to continue its leadership in the retail industry. As online shopping and the demand for convenience grows, Tesco's investments in digital technology and its emphasis on customer experience and value offer a promising outlook.
Furthermore, the company's focus on healthier and sustainable alternatives reflects a forward-thinking strategy set to cater to future consumer trends and global responsibility.
Tesco PLC, a prominent multinational retailer, has shown varied trends in its share price throughout 2023. As of December 1, 2023, Tesco's share price stood at GBX 279.60, with a 52-week range between 219.96 and 287.
The market capitalisation was £19.80 billion, with a high P/E ratio of 1,398.00 and a dividend yield of 3.93%. Analysts rated Tesco as a "Moderate Buy" with a price target of GBX 295, indicating a potential upside of 5.5%.
Tesco's financial performance in 2023 has been marked by a significant decline in net income, falling by 49.70% from 1.48 billion to 745.00 million, despite a 7.20% increase in revenues. This decline can be attributed to a rise in the cost of goods sold. The company's gross margin stood at 7.42%, with a net profit margin of 2.10% and a return on equity of 11.04%.
Tesco's cash reserves decreased by 206.00 million in 2023. However, the company generated 3.72 billion from its operations, resulting in a cash flow margin of 5.66%. These figures highlight Tesco's ability to generate substantial operational cash flow despite a challenging financial year.
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Tesco's share price in 2023 reflects a complex interplay of its financial performance, business model strengths, and market challenges. While analysts see growth potential, the company must navigate economic uncertainties and intensifying competition to enhance its market position and shareholder value.
From its modest start in 1919 to becoming a leading global retailer, Tesco Plc's history is one of resilience, innovation, and customer focus. As the company navigates a rapidly changing retail landscape, its ability to evolve and adapt will be critical to its ongoing success.
While challenges undoubtedly lie ahead, Tesco's commitment to providing value, enhancing customer experiences and its willingness to embrace emerging shopping trends position it well to thrive in the ever-evolving retail sector.
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