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Tesco is a general merchandise and grocery retailer based in Welwyn Garden City, England. Jack Cohen founded the company in 1919. The Tesco brand first appeared in 1924 after Cohen combined the name of his tea supplier, Thomas Edward Stockwell (TES), and the first two letters of his surname (CO). In September 1931, Cohen opened the first Tesco shop in Edgware, Middlesex.
Tesco diversified its offerings since the 1960s to include books, clothing, toys, electronics, furniture, petrol, software, financial services, telecoms, and internet services. The company has over 336,000 employees. In February 2023, Tesco cut around 2,000 jobs to restructure its operations. [1]
Tesco is the UK’s leading grocery chain with a 27% market share. The company operates in the UK, Ireland, the Czech Republic, Hungary, and Slovakia. In January 2023, the retailer had 4,859 company-owned and franchise stores globally. Tesco generates most of its revenue in the UK, with 2,455 outlets. In October 2023, Tesco launched its festive recruitment drive ahead of the busy holiday season. The company seeks to recruit 30,000 temporary workers in the UK to work early morning, mid-day, or evening shifts in Tesco stores.
Tesco is one of the world’s largest general merchandise retailers. However, the retail giant faces stiff competition from Sainsbury’s, Asda, Aldi, Morrisons, Lidl, Waitrose, Ocado, SuperValu, Iceland, Whole Foods, Co-op, and Amazon Fresh. [2]
Here is an in-depth analysis of Tesco’s top 15 competitors and alternatives:
1. Sainsbury’s
Year founded: 1869
Headquarter: London, United Kingdom
Sainsbury’s is the UK’s second-largest supermarket chain. The company has over 152,000 employees and over 600 supermarkets and 800 convenience stores. In 2023, Sainsbury’s launched its new brand campaign with the slogan “Good food for all of us.” [3]
Sainsbury’s controls a 14.9% share of UK supermarket sales. The company launched Nectar Prices in April 2023 to help customers find low-priced products to save money. Shoppers can access fashionwear through Sainsbury’s Tu Clothing outlets and Tu.co.uk. In September 2023, the retailer created branded fashion hubs in 50 stores and Tu Clothing to offer iconic brands. Sainsbury’s is the top Tesco competitor and alternative. [4]
2. Asda
Year founded: 1949
Headquarter: Leeds, United Kingdom
Asda is the UK’s third-largest supermarket chain. The company has over 145,000 employees and serves over 18 million customers through its 633 supercentres, superstores, and supermarkets. In January 2022, Asda cut 300 jobs and reduced pay for 4,300 workers. [5]
Asda started as a dairy conglomerate and expanded into a general merchandise retailer. The chain sells several products, including food, apparel, music, videos, houseware, and books. As of April 2023, Asda had a 14.1% share of the UK supermarket sales. Asda is one of Tesco’s top competitors.
3. Aldi
Year founded: 1946
Headquarter: Essen, Germany
Aldi is a discount supermarket chain with around 40,000 employees and 1,000 stores across the UK. In September 2023, Aldi unveiled a two-year £1.3 billion expansion plan. The company will open 500 new UK stores. [6]
Aldi competes against Tesco in the UK, Ireland, and Hungary. The retailer seeks to expand its market presence in the UK. In September 2023, Aldi UK raised its long-term target from 1,200 to 1,500 stores by 2025. The Aldi Sud-owned chain is Britain’s fourth-largest supermarket, with around 10% market share, making it one of the top competitors for Tesco. [7]
4. Morrisons
Year founded: 1899
Headquarter: West Yorkshire, United Kingdom
Morrisons is the UK’s fifth-largest supermarket chain, with an 8.8% market share of grocery sales. The company has 110,000 employees and operates around 650 superstores. In September 2022, the CMA approved Morrisons’ takeover of McColl’s with 1,100 stores. [8]
US private equity firm CD&R took over Morrisons for £7 billion in October 2021. The takeover undercut Morrissons’ competitive edge. In March 2023, the chain announced plans to cut £700 million in costs over three years. The company will invest the cost savings in lowering its product prices and increasing Morrisons’ competitive advantage over Tesco. [9]
5. Lidl
Year founded: 1932
Headquarter: Neckarsulm, Germany
Lidl is a German discount grocer and retail chain owned by the Schwarz Group. The retailer operates over 12,000 stores in 31 countries. In January 2023, Lidl had a 7.2% market share in Great Britain.
Lidl is Britain’s sixth-largest supermarket chain with 960 stores and 13 regional distribution centers across Great Britain. Both Lidl and Tesco leverage holidays to increase sales. In December 2022, Lidl gained 1.3 million British shoppers over Christmas. Lidl is the best alternative to Tesco for budget-conscious consumers. [10]
6. Waitrose
Year founded: 1904
Headquarter: Bracknell, United Kingdom
Waitrose is a British supermarket chain and part of the John Lewis Partnership. The retailer sells groceries through physical stores and online channels. In September 2023, John Lewis offered 12 Waitrose stores for sale and leaseback to raise £150 million. Waitrose will use the funds to renovate its outlets, improve prices, and strengthen online platforms. [11]
Waitrose had a 4.6% share of the UK grocery market in 2023, down from 5.1% in early 2020. The chain partnered with Deliveroo and Dobbies in 2022 to unlock new growth opportunities after losing ground to Aldi and Lidl. In October 2023, Waitrose and Amazon discussed a third-party deal to sell Waitrose’s groceries via Amazon.com. This move can help Waitrose attract more shoppers and claw back market share from Tesco. [12]
7. Ocado
Year founded: 2000
Headquarter: Hatfield, United Kingdom
Ocado is a British online grocery retailer that sells groceries via its eCommerce platform. In June 2023, Ocado reduced the prices of over 650 items to attract more customers.
Ocado fulfills customers’ orders through its four distribution centers and delivers to their homes. In September 2023, the online grocer reported a 1.5% increase in active customers to 961,000, and its average weekly orders rose by 1.9% to 381,000. Ocado is a worthy alternative to Tesco for online grocery shoppers. [13]
8. SuperValu
Year founded: 1968
Headquarter: Cork, Ireland
SuperValu is an Irish supermarket chain. The company has around 16,000 employees and over 220 stores. In August 2022, SuperValu won 108 awards at the Great Taste Awards. [14]
SuperValu serves over 2.7 million weekly customers across all 26 counties of Ireland. The chain operates through independent retail partners. In October 2023, Ryan’s SuperValu in County Cork reopened with a new look after a €7.5 million revamp. The state-of-the-art store will hire 20 more employees, increasing its workforce from 85 to 115. SuperValu is the top competitor for Tesco in Ireland. [15]
9. Iceland Foods
Year founded: 1970
Headquarter: Deeside, Wales, United Kingdom
Iceland Foods is a British supermarket chain with over 18,000 employees. The chain launched on the Amazon website in September 2023, offering thousands of products to Prime subscribers. As of October 2023, Iceland Foods operated over 1,000 UK stores. [16]
Iceland specializes in frozen foods, including prepared meals and vegetables. The chain also sells non-frozen groceries, meat, dairy, and dry goods. In July 2023, Iceland reduced the prices of 500 household essentials. Iceland is one of the best alternatives to Tesco for frozen foods. [17]
10. Whole Foods Market
Year founded: 1980
Headquarter: Austin, Texas
Whole Foods is an American grocery retailer owned by Amazon. The company operates in the US, Canada, and the UK. In 2022, Amazon announced plans to triple new Whole Foods store openings annually. [18]
Whole Foods operates seven UK stores versus Tesco’s 2,797 locations. In October 2023, Whole Foods expanded its value and lowest-priced products to widen customer appeal. The company also axed its luxury goods in September 2023 and increased discounted items in its London stores. As a subsidiary of Amazon, Whole Foods has enough resources to compete and poach some customers from Tesco. [19]
11. Co-op Food
Year founded: 1850
Headquarter: Manchester, United Kingdom
Co-op Food is a food retail business of UK’s Co-operative Group. It operates a supermarket chain in the UK, which competes against Tesco. In 2022, Co-op Food employed over 2,500 people.
Co-op operates through a membership scheme. The supermarket chain has a third-party deal with Amazon, where Amazon sells its groceries on Amazon.com and delivers them from local branches. In H1 2023, Co-op recorded a 55% rise in new members. The company’s £101 million saving efforts in 2022 increased its profits in H1 2023 by £44 million, making Co-op Food one of the top competitors for Tesco. [20]
12. Amazon Fresh
Year founded: 2007
Headquarter: Seattle, Washington
Amazon Fresh is a grocery retailer owned by American e-commerce giant Amazon. The company operates physical stores, online sales platforms, and a delivery service. In July 2023, Amazon paused Amazon Fresh’s expansion to refocus its strategy. [21]
Amazon launched the Amazon Fresh online delivery service in 2016 to enter the UK grocery sector. In July 2023, Amazon closed its first checkout-free Amazon Fresh store in the UK. The retailer had four store closures in 2023. As of Oct 2023, Amazon Fresh operated 19 UK outlets and is an emerging competitor for Tesco. [22]
13. Kaufland
Year founded: 1984
Headquarter: Neckarsulm, Germany
Kaufland is a German hypermarket chain owned by the Schwarz Group. The company has around 148,000 employees and operates in eight European countries. In November 2022, Kaufland opened a new 5,000-sqm hypermarket in Bucharest, Romania. [23]
Kaufland and Tesco compete in the Czech Republic and Slovakia. In October 2020, the Schwarz Group acquired the online marketplace real.de and integrated it into kaufland.de. This unified platform has over 30 million products and attracts 32 million online monthly visitors.
In 2022, Kaufland expanded its kaufland.de marketplace to allow customers in the Czech Republic and Slovakia to shop online from its 1,500 stores across Europe. Kaufland is one of the best alternatives to Tesco for Czech and Slovak consumers. [24]
14. Penny Market
Year founded: 1973
Headquarter: Cologne, Germany
Penny Market is a discount supermarket chain owned by REWE Group. The retailer sells over 2,000 food and non-food products. In 2022, Penny Market had around 3,550 stores.
Penny Market and Tesco operate in Hungary. Both stores feature grocery sections, butcher shops, and deli counters. In September 2023, Penny Market Hungary won the Retail Award of Excellence for Hungarian Products, making it a worthy competitor for Tesco. [25]
15. Albert
Year founded: 2016
Headquarter: Zaandam, Netherlands
Albert is a European grocer owned by Ahold Delhaize. The company has supermarkets in the Czech Republic, Netherlands, Portugal, Romania, and Serbia. In 2022, Ahold Delhaize had around 7,600 stores. [26]
Albert is one of the Czech Republic’s largest retailers. In 2023, Albert deployed autonomous mobile robots across its Czech Republic hypermarkets and distribution centers. The robots clean over 215 million square feet, allowing employees to focus on improving the customer experience. Albert is one of the top competitors for Tesco in the Czech Republic. [27]
References & more information
- Faragher, J. (2023, Feb 1). Tesco to cut 2,000 jobs in supermarket restructure. Personnel Today
- Tesco PLC (2023, Oct 13). A festive recruitment drive was launched by Tesco as it looks to fill 30,000 jobs. TescoPLC.com
- J Sainsbury (2023, Sep 26). Sainsbury’s to launch Good food for all of us. Sainsburys.co.uk
- J Sainsbury (2023, Sep 7). Sainsbury’s to create branded fashion destination hubs in at least 50 stores alongside Tu Clothing. Sainsburys.co.uk
- Butler, S. (2023, Jan 26). Asda plans to cut 300 jobs and reduce pay for 4,300 staff in a shake-up. The Guardian
- Glover, P. (2023, Oct 19). Aldi is opening 12 new UK stores in 2023 as part of a planned 500. Barr Head News
- Reuters Staff (2023, Sep 7). Aldi UK sets a new long-term target of 1,500 stores. Reuters
- Sweney, M. (2022, Sep 8). Morrisons’ takeover of McColl’s ‘will not harm majority’ of rival firms. The Guardian
- Marsh, S. (2023, Mar 30). Morrisons plans to cut £700m in costs despite the rise in revenue. The Guardian
- Jolly, J. (2023, Jan 9). Lidl gained 1.3m British shoppers at Christmas amid the living costs crisis. The Guardian
- Butler, S. (2023, Sep 28). John Lewis is looking at the sale and leaseback of 12 Waitrose stores. The Guardian
- Kollewe, J. (2023, Oct 8). The supermarket is said to be considering a third-party deal after its share of the UK market fell. The Guardian
- Davey, J. (2023, Sep 19). More shoppers help Ocado Retail return to growth for items sold. Reuters
- SuperValu (2022, Aug 5). SuperValu and Centra are the Big Winners at the 2022 Great Taste Awards. SuperValu.com
- Joy, J. (2023, Oct 24). SuperValu opens a state-of-the-art store in Cork. The Independent
- Barry, A. (2023, Oct 22). The list of Iceland stores closing in autumn 2023. The Express
- Reuters Staff (2023, Jul 18). Iceland Foods joins UK supermarket rivals in cutting prices. Reuters
- Bitter, A. (2023, Jan 18). Amazon is rapidly opening new Whole Foods stores after halting Amazon Fresh’s expansion. Business Insider
- Bayford, K. (2023, Oct 25). Whole Foods Market to expand value ranges as it looks to broaden customer appeal. Grocery Gazette
- Hill, E. (2023, Sep 21). Co-op pulls in profits as cost savings pay off. Retail Gazette
- Meyersohn, N. (2023, Aug 3). Amazon Fresh grocery chain has struggled. See its stores of the future. CNN
- Faithfull, M. (2023, Jul 26). Amazon cashes out of its First Checkout-Free UK Store. Forbes
- PF Editor (2022, Nov 24). Kaufland reaches 1,500 hypermarkets in Europe. Property Forum
- Across-Magazine Staff (2022, Mar 28). Kaufland Marketplace expands into the Czech Republic and Slovakia. Across-Magazine.com
- TM Staff (2023, Sep 26). PENNY won the Retail Award of Excellence in 2023. Trademagazin
- Reid, H. (2023, May 10). Grocer Ahold sees Europe’s food inflation slowing. Reuters
- Grill-Goodman, J. (2023, Oct 4). Robots Clean 215M Square Feet in Ahold Delhaize’s Albert Stores and DCs. RIS News
- Featured Image by Shashank Verma
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