Tesco

The company was the subject of a letter bomb campaign lasting five months from August 2000 to February 2001, as a bomber calling himself "Sally" sent letter bombs to Tesco customers and demanded that Clubcards be modified to be capable of withdrawing money from cash machines.

Diversification

In the 1960s, Tesco expanded the range of products it sold to include household goods and clothing under the Delamare brand, and in 1974 opened its first petrol station.

In 2001, Tesco became involved in internet grocery retailing in the US when it obtained a 35% stake in GroceryWorks.

In 2002, Tesco purchased 13 HIT hypermarkets in Poland. It made a major move into the UK's convenience shop market with its purchase of T&S Stores, owner of 870 convenience shops in the One Stop, Dillons, and Day & Nite chains in the UK.

In June 2003, Tesco purchased the C Two-Network in Japan. It acquired a majority stake in the Turkish supermarket chain Kipa. In January 2004, Tesco acquired Adminstore, owner of 45 Cullens, Europa, and Harts convenience shops, in and around London.

In Thailand, Tesco Lotus was a joint venture of the Charoen Pokphand Group and Tesco but, facing criticism over the growth of hypermarkets, CP Group sold its Tesco Lotus shares in 2003.

In late 2005 Tesco acquired the 21 remaining Safeway/BP shops after Morrisons dissolved the Safeway/BP partnership.

In 2006, Tesco announced plans to move into the United States by opening a chain of small-format groceries in the Western states (Arizona, California, and Nevada) in 2007 named Fresh & Easy. Tesco pulled out of the United States market in 2013, following performance issues.

2010s

In 2010, Tesco started funding a small film studio intended to produce Tesco-exclusive direct-to-DVD films. The first film was released on 6 September called Paris Connections, based on a popular novel by Jackie Collins.

In 2013, Tesco pulled out of its US market (Fresh & Easy) stores in April, after it filed for Chapter 11 bankruptcy, at a reported cost of £1.2 billion. In September, Tesco announced that it would sell the business to Ronald Burkle's Yucaipa Companies for an undisclosed amount. Tesco also purchased the restaurant and cafe chain Giraffe for £48.6 million.

In 2015, Tesco sold its Blinkbox on-demand video service and its fixed-line telephone and broadband business to TalkTalk. In January, Tesco sold the Blinkbox Music streaming service to now-defunct Guvera, and confirmed it would close its Blinkbox Books service by the end of February.

In 2016, Tesco confirmed it was seeking to sell Dobbies Garden Centres, Giraffe Restaurants, and Harris + Hoole to concentrate on its main supermarket business.

In 2017, Tesco reached an agreement to merge with Britain's biggest wholesaler Booker Group. There were concerns over market dominance with Tesco being Britain's largest food retailer and Booker being the UK's largest wholesaler. In April, the company sold its in-shop opticians' business to Vision Express. In June, Tesco announced a major cost-cutting initiative that would reduce the company's workforce by over 1,200 workers. Key reductions included over a quarter of its employees in Welwyn Garden City and Hatfield, and the closure of the call centre in Cardiff. The company hoped to reduce costs by £1.5 billion.

In 2019, Tesco announced another cost-cutting initiative that would close the food counters in 90 stores, affecting around 9,000 workers. In October 2019, Tesco announced that CEO Dave Lewis would step down in 2020, and would be succeeded by Ken Murphy.

2020s

In February 2020, Tesco announced the sale of its 20% stake in its Chinese joint venture with China Resources for £257 million. The joint venture, created in 2014, had taken over all of Tesco’s stores in China. In March 2020, Tesco announced the sale of its operations in Thailand and Malaysia, comprising 2,000 stores (including Tesco Lotus supermarkets), to Charoen Pokphand Group for $10 billion. In June 2020, Tesco announced the sale of its operations in Poland, comprising nearly 300 stores, to Salling Group for £165 million.

In 2023, Tesco acquired all nine Shoprite shops on the Isle of Man from the Nicholson family who had built the chain up since 1972.

In February 2024, Barclays announced the acquisition of most of Tesco's banking operations for £600 million, along with the signing of a 10-year partnership between the two companies.

It supports LGBTQ+ charities and organizations, and has made substantial donations to them. It regularly appears in Pride marches.

Tesco operates a number of in-shop cafes. Tesco began to introduce new restaurants in its shops from 2013 under the "Decks Carvery" brand.

Tesco Express

Tesco Express shops are neighbourhood convenience shops averaging 200 square metres (2,200 sq ft), stocking mainly food with an emphasis on higher-margin products such as sweets, crisps, chocolate, biscuits, fizzy drinks, and processed food, alongside everyday essentials. This is due to small shop size, and the necessity to maximize revenue per square foot.

They are located in busy city-centre districts, small shopping precincts in residential areas, small towns, and villages, and on Esso petrol station forecourts. In 2010, it became known that Tesco was operating Express pricing, charging more in its Express branches than in its other stores. A spokesperson said that this was "because of the difference in costs of running the smaller shops".

Fuel stations

Tesco first started selling petrol in 1974. Tesco sells 95, 97, and 99 RON petrol, a fuel developed by Greenergy of which Tesco is a shareholder, from forecourts at most Superstore and Extra locations. Tesco recently diversified into biofuels, offering petrol-bioethanol and diesel-biodiesel blends instead of pure petrol and diesel at its petrol stations, and now offering Greenergy 100% biodiesel at many shops in the southeast of the United Kingdom.

In 1998, Tesco and Esso (part of ExxonMobil) formed a business alliance that included several petrol filling stations on lease from Esso, with Tesco operating the attached shops under its Express format. Esso operates the forecourts and sells fuel via the Tesco shop. As of 2013, there were 200 joint Tesco Express/Esso sites in the UK.

Online

In the United Kingdom Tesco operates a home shopping service through the Tesco.com website. In May 1984, in Gateshead, England, Mrs. Jane Snowball used a piece of computer technology called "Videotex" on her television to purchase groceries from her local Tesco shop in the world's first recorded online shopping transaction from the home. As of November 2006, Tesco was the only food retailer to make online shopping profitable.

In January 2023, Tesco opened its sixth Urban Fulfilment Centre (UFC) at Bar Hill Extra in Cambridgeshire. UFCs are attached to large stores and serve as dedicated picking hubs for home delivery and click and collect orders.

Loyalty card

In 1995, Tesco launched its customer loyalty scheme, the Tesco Clubcard. It has been cited as a pivotal development in Tesco's progress towards becoming the UK's largest supermarket chain and one that fundamentally changed the country's supermarket business. Tesco was cited in a Wall Street Journal article as using the intelligence from the Clubcard to thwart Wal-Mart's initiatives in the UK.

Cardholders can collect one Clubcard point for every £1 (or one point for €1 in Ireland and Slovakia or 1 point for 1zł in Poland) they spend in a Tesco shop, or at Tesco.com, and 1 point per £2 on fuel (not in Slovakia). Customers can also collect points by paying with a Tesco Credit Card, or by using Tesco Mobile, Tesco Homephone, Tesco Broadband, selected Tesco Personal Finance products, or through Clubcard partners, E.ON and Avis. Each point equates to 1p in shops when redeemed, or up to four times that value when used with Clubcard deals (offers for holidays, day trips, etc.) Clubcard points (UK & IE) can also be converted to Avios and Virgin Atlantic frequent flyer miles.

One Stop

One Stop, which includes some of the smallest shops, smaller than a Tesco Express, was the only Tesco shop format in the UK that did not include the word Tesco in its name, until 2018, when the first Jack's store opened. The brand, along with the original shops, formed part of the T&S Stores business. Unlike many that were converted to Tesco Express, these kept their old name. Other shops bought by Tesco have been converted to the One Stop brand. Some have Tesco Bank branded cash machines.

The business has attracted some controversy, as the prices of groceries in these shops, often situated in more impoverished areas, can be higher than nearby Tesco branded shops, highlighted in The Times 22 March 2010: "Britain's biggest supermarket uses its chain of 639 One Stop convenience shops – which many customers do not realize it owns – to charge up to 14 per cent more for goods than it does in Tesco-branded shops."

Tesco responded to the article stating "It is a separate business within the Tesco Group, with its own supply chain and distribution network. One Stop shops offer a different range to Express shops and its operating costs are different. One Stop's price strategy is to match to its nearest competitor, Costcutter, and is frequently cheaper."

Subsidiaries

Booker Group

Tesco completed its acquisition of the food wholesaler Booker in March 2018. Booker also owns the Budgens, Londis, Euro Shopper, and Premier Stores brands which operate under franchises.

Tesco Bank

In the United Kingdom Tesco offers financial services through Tesco Bank, formerly a 50:50 joint venture with The Royal Bank of Scotland. Products on offer include credit cards, loans, mortgages, savings accounts, and several types of insurance, including car, home, life, and travel. They are promoted by leaflets in Tesco's shops and through its website. The business made a profit of £130 million for the 52 weeks to 24 February 2007, of which Tesco's share was £66 million. This move towards the financial sector diversified the Tesco brand and provides opportunities for growth outside of the retailing sector. In July 2008, Tesco bought out the Royal Bank of Scotland's 50% stake in the company for £950 million.

F&F

F&F launched in 2001 as Florence & Fred in Tesco's UK and Ireland supermarkets. In 2010, the brand started to open stores in of itself starting with a London store. In the early to mid-2010s, it expanded to multiple countries stores and online.

In the UK, F&F had its own website until 2016 when it was folded into Tesco Direct - which itself folded in August 2018. After this, F&F had no online UK presence until it partnered with Next PLC a year later. Tesco launched a scaled-down F&F on Tesco.com soon after its deal with Next.

Tesco Mobile

Tesco operates a mobile phone business across the United Kingdom, Ireland, Slovakia, Hungary, and the Czech Republic. It launched in the UK in 2003 as a joint venture with O2. It operates as a mobile virtual network operator (MVNO) using the network of O2. In Hungary, the network of Vodafone Hungary is used. In Ireland, Three Ireland is used. As a virtual operator, Tesco Mobile does not own or operate its own network infrastructure. In January 2011 Tesco had over 2.5 million UK mobile customers.

Tesco operated a home telephone and broadband business. Its broadband service was launched in August 2004 to complement its existing internet service provider business, providing an ADSL-based service delivered via BT phone lines. In January 2015, Tesco sold its home telephone and broadband business, together with Blinkbox, to TalkTalk for around £5 million. Its customers were transferred by 2016.

Tesco Marketplace

Tesco Marketplace is an online shopping platform designed to offer its customers a wider range of items than Tesco's traditional grocery product line and become a "one-stop shop". In the first eight months following its launch, Tesco Marketplace expanded significantly, offering over 300,000 SKUs compared to 9,000 SKUs on its launch date.

Unlike Tesco's grocery operations, Tesco Marketplace products are fulfilled and delivered directly by the online sellers. Using third-party sellers, the marketplace format allows customers to purchase from a range of categories including pet care, beauty, homeware, DIY, gardening, toys, baby and toddler, electrics, furniture, and many more. Customers can also collect Clubcard points with purchases from Tesco Marketplace.

Tesco Real Food

Tesco Real Food is Tesco's owned-and-operated recipe and food inspiration website. It was launched in 2010 to accompany the Tesco recipe magazine.

Tesco Tech Support

Tesco acquired a small I.T. support company called The PC Guys in 2007, and were able to launch Tesco Tech Support in December 2008.

Former operations

Tesco Home 'n' Wear

In the 1960s, Tesco set up a non-food division, Tesco Home 'n' Wear, headed by Leslie Porter. It had stand-alone shops and departments in larger shops, and from 1975 a distribution centre in Milton Keynes. Although Tesco continued to stock non-food items the stand-alone shops were closed and the name was no longer in use when Tesco Extra was launched.

Tesco Homeplus

In May 2005, Tesco announced a trial non-food only format near Manchester and Aberdeen. The first shop opened in October 2005. The shops offered all of Tesco's ranges except food in warehouse-style units in retail parks. Tesco introduced the format as only 20% of its customers had access to a Tesco Extra, and the company was restricted in how many of its superstores it could convert into Extras and how quickly it could do so. Large units for non-food retailing are much more readily available. The format was not Tesco's first non-food-only venture in the UK. Until the late 1990s/early 2000s there were several non-food Tesco shops around the country, including Scarborough and Yate.

Although not in a warehouse-style format, the shops were located on high streets and shopping centres and stocked similar items to Homeplus shops. In both cases, this was because another part of the shopping centre had a Tesco Superstore that stocked food items only. By 2014, the number of Homeplus shops in the United Kingdom had reached 12. The newest shop opened in Chester in July 2009. In 2012 it was reported that Tesco was looking to close the business to focus on groceries. Tesco closed six Homeplus shops in March 2015, and the remaining six shops closed in June 2015.

Tesco Metro

Tesco Metro shops were sized between Tesco superstores and Tesco Express shops, averaging 1,000 square metres (11,000 sq ft). They were mainly located in town centres and other urban locations and were designed to accommodate larger weekly shops as well as top-up shopping.

In May 2021, Tesco retired the brand, as only 31% of customers were using the stores for larger shops. 89 locations converted to the Tesco Express format. The remaining 58 adopted the standard superstore format.

Dobbies Garden Centres

Dobbies is a chain of garden centres across Scotland, England, and Northern Ireland. Tesco completed its acquisition of Dobbies in 2008. The company continued to trade under its own brand, from its own head office in Melville, near Edinburgh. In June 2016, Tesco sold the company to a group of investors led by Midlothian Capital Partners and Hattington Capital for £217 million.

Harris + Hoole

In 2012, Tesco invested in a new coffee shop chain, named Harris + Hoole after coffee-loving characters in Samuel Pepys' diary. In February 2016, Tesco took full ownership of the business from its founders Nick, Andrew and Laura Tolley. In June 2016, Tesco sold it to Caffè Nero.

Giraffe

Giraffe is a restaurant chain in the United Kingdom which Tesco purchased in March 2013 as part of a strategy of making use of excess space in its shops. In June 2016, Tesco sold the chain to Boparan Holdings.

Euphorium Bakery

Euphorium Bakery opened a concession in Tesco's Kensington shop in 2012, and in 2013 Tesco bought a stake in the business. It purchased the remaining stake in April 2015. In August 2016, Tesco sold Euphorium's high street shops and factory in Islington to Soho Coffee, and its factory in Weybridge to Samworth Brothers.

Jack's

In 2018, Tesco launched a separate budget chain, Jack's, to compete with Lidl and Aldi. The first store opened in Chatteris, Cambridgeshire in September 2018. In January 2022, Tesco shut down its Jack's stores, with stores either being closed or converted to Tesco Superstores.

International operations

Tesco expanded its operations from the United Kingdom to 11 other countries. Tesco pulled out of the United States in 2013, but continued to see growth elsewhere. Tesco's international expansion strategy has responded to the need to be sensitive to local expectations in other countries by entering into joint ventures with local partners, such as Samsung Group in South Korea (Samsung-Tesco Home plus), and Charoen Pokphand in Thailand (Tesco Lotus), appointing a very high proportion of local personnel to management positions. Tesco also makes small acquisitions as part of its strategy: for example, in its 2005/2006 financial year, it made acquisitions in South Korea, one in Poland, and one in Japan.

Operations

The following table shows the number of stores for Tesco's international operations.

Czech Republic

In 1996, Tesco expanded to the Czech Republic when they purchased Kmart's local operations for $117.5 million and rebranded the stores as Tesco. In December 2005, Tesco expanded its operations in the country by purchasing Carrefour's local operations.

Tesco has been a market leader within the Czech Republic and is one of the largest supermarket chains in the country, operating over 322 stores by 2012, upwards of 300 by 2007. Tesco is keen to expand non-food items and has already opened petrol stations and offers personal finance services in the Czech Republic.

Hungary

In 1994, Tesco entered Hungary when the company purchased the Győr-based chain S-Market. Currently, Tesco operates through more than 200 stores in Hungary with further openings planned. Tesco Hungary also offers a clothing line and personal finance services.

Slovakia

In 1996, Tesco entered the Slovak market by purchasing Kmart's local operations.

Tesco Slovakia caused controversy amongst the Slovak government when it was found to have come foul of food safety laws in 2006.

In April 2010 the first Tesco Extra in Central Europe opened in Bratislava – Petržalka, Slovakia as part of a pilot project for Tesco in the region, including the first self-service cash flow in Central Europe. There are currently seven Tesco Extra stores in Slovakia – three in Bratislava and one each in Zvolen, Trnava, Banská Bystrica and Spišská Nová Ves.

Ireland

In the early 1980s, Tesco first operated in the Irish grocery market, selling its operations there in March 1986. In 1997, Tesco re-entered the Irish market after the purchase of Power Supermarkets Ltd, which operated the Quinnsworth chain of supermarkets. It now operates from 154 stores across Ireland. Like Tesco stores in the UK, these offer a home delivery shopping service available to 80% of the Irish population as well as petrol, mobile telephone, personal finance, flower delivery service, and a weight-loss programme. Tesco's loyalty programme, Clubcard, is offered in Ireland. Tesco had approximately 21% of the Irish grocery market in 2019 and its main competitors are Dunnes Stores and SuperValu.

Tesco Ireland claims to be the largest purchaser of Irish food, with an estimated €1.5 billion annually. Tesco Ireland operates a number of Tesco Extra hypermarkets in Ireland, with Clarehall Extra on the Malahide Road being the first to open in 2006. In November 2010, Tesco's largest hypermarket store in Europe opened in Dundalk in County Louth, with a floorspace of 18,500 m2 (199,000 sq ft).

In April 2011, the Irish Times said that "Increasingly, Ireland is being viewed as a provincial backwater by the parent company – albeit a very profitable little backwater – and all the strategic decisions are being taken in the UK.

In 2008, Tesco opened its first eco store in Tramore, County Waterford. It is expected to use 45% less energy than other Tesco supermarkets of similar size.

Iberia

Under a partnership with Tenerife-based company Overseas Imports, Tesco supplies products for their "The Food Co." chain, which operates through Spain, Portugal, Gibraltar and the Canary Islands, with the first store opening in 2019 in Puerto de Mazarrón, located in the Murcia province of Spain. Their first store in Portugal opened the following year.

India

Tesco has had a limited presence in India with a service centre in Bangalore, and outsourcing. In 2008, Tesco announced its intention to invest an initial £60m (US$115m) to open a wholesale cash-and-carry business based in Mumbai with the assistance of the Tata Group. In 2014, the joint venture between Tesco and Tata was confirmed, where investment by the earlier was reportedly 140 million dollars, becoming the first foreign supermarket to enter India. The stores operate under the banner Star Bazaar and Star Daily supermarkets.

Pakistan

In February 2017 Tesco announced a wholesale partnership with Limestone Private Limited, owner of the Alpha Superstores chain. This involved an exclusive partnership which would see Tesco products stocked across Alpha Supermarket stores within Pakistan.

China

In September 2004, Tesco acquired a 50% stake in the Hymall chain from Ting Hsin. In December 2006, it raised its stake to 90% in a £180 million deal.

In 2007, Tesco began opening new stores under its name in the country, beginning with Beijing. In its peak, most of their stores were based around Shanghai. Tesco had a large store in Weifang, Shandong province, and a further two-floor store in Taizhou, Jiangsu province. Tesco had been increasing its own brand products into the Chinese market as well as introducing the Tesco Express format.

In August 2013, Tesco announced that they were in talks to merge their Chinese operations with the state-run China Resources Enterprise (CRE) to create a joint venture, which would combine their 131 stores with CRE's nearly 3,000 outlets. The venture was officially announced in October, with Tesco holding a 20% stake and was closed in May 2014.

In February 2020, Tesco announced it would completely exit the Chinese market and sell its 20% stake in the venture to CRE for £275 million.

France

In 1992, Tesco invested 72% in French retailer Catteau, which operated a chain of 92 stores in NE France under the Cedico, Hyper Cedico and Cedimarche banners. In December 1997, Tesco sold Catteau to Promodès following major profit losses and to focus more on its then-new Central Europe division.

Also in 1997, Tesco opened up a store named "Vin Plus" in Calais which mostly sold wine, beer, and spirits. In June 2010, Tesco announced that the store would close permanently at the end of August, citing the decline of the booze cruise as the reason.

Hong Kong

In April 2015, Tesco entered into a joint-venture with China Resources Vanguard to operate a range of convenience stores entitled "U Select".

India

Tesco has had a limited presence in India with a service centre in Bangalore, and outsourcing.

In 2008, Tesco announced their intention to invest an initial £60m ($115m) to open a wholesale cash-and-carry business based in Mumbai with the assistance of the Tata Group. In 2014, the joint venture between Tesco and Tata was confirmed, where investment by the earlier was reportedly 140 million dollars, becoming the first foreign supermarket to enter India. The stores are now operated under the banner Star Bazaar and Star Daily supermarkets.

Japan

Tesco had an interest in entering the Japanese market as early as 2000. In June 2003, Tesco purchased C Two-Network for £139 million. C Two-Network owned a Japanese supermarket chain called Tsurukame, which had 78 mid-sized stores based within Tokyo. In April 2004, Tesco purchased the bankrupt supermarket chain Fre'c. These stores, also based within Tokyo, would be folded under C-Two Network and rebranded under the Tsurukame name, expanding Tesco's operations in Japan to 104 stores. An additional eight stores were added in October 2005 when Tanekin Supermarket was purchased.

In April 2007, C-Two Network opened up its first Tesco Express store in Japan, intending to open up 35 new Tesco and Tsurukame stores by 2008. In September, C Two-Network Co, Ltd. was renamed to Tesco Japan Co, Ltd. and later launched a range of software. In December 2009, the first Tesco supermarkets opened in Japan. By August 2011, 29 supermarkets were in operation.

In August 2011, Tesco announced that it would exit the Japanese market and sell a 50% stake of Tesco Japan to ÆON for £40 million. It was revealed that only half of Tesco Japan's stores in Greater Tokyo Area were making a profit and that the market share in Japan was never above 1 percent. In December 2012, ÆON purchased out the remainder stake in Tesco Japan for a minimal 1 yen share and became a fully owned subsidiary. In March 2013, Tesco Japan Co, Ltd. was renamed ÆON Every Co, Ltd. with all Tesco branded stores rebranded under the Acore name. At the end of March 2014, ÆON Every's remaining stores were closed or sold, and the company ceased operations.

Malaysia

In December 2000, Tesco entered into a joint venture with trading conglomerate Sime Darby Berhad to operate Tesco-branded Hypermarkets in Malaysia. Tesco would own 70% of the venture, while Sime Darby would own 30%. The first hypermarket opened in May 2002 in Puchong, Selangor with intentions to open 13 stores in five years. In December 2006, Tesco purchased the local operations of Dutch supermarket chain Makro for £80 million and rebranded them under the Tesco Extra name.

By 2012, Tesco Malaysia operated 49 stores that were branded under the Tesco and Tesco Extra names. In April 2013, Tesco Malaysia launched the Grocery Home Shopping Service, where it delivered groceries ordered via the Internet to consumers, with no minimum purchase imposed. In February 2015, Tesco Malaysia expanded to the convenience store market and opened up their first Tesco Ekspres store.

In March 2020, Tesco sold Tesco Malaysia to the Thailand-based Charoen Pokphand Group for US$10.6bn, including debt, in a deal that included the Thailand operations. In April, Sime Darby agreed to sell their 30% stake in Tesco Malaysia to Charoen Pokphand and Tesco for RM300 million. After the deals closed, the chain was rebranded as Lotus's.

Pakistan

In February 2017 Tesco announced a wholesale partnership with Limestone Private, owner of the Alpha Superstores chain. This involved an exclusive partnership which would see Tesco products stocked across Alpha Supermarket stores within Pakistan.

Poland

In 1995, Tesco entered the Polish market after acquiring the local chains Minor, Madex, and Savia. The company opened its first hypermarket in Wrocław Bielany in 1998. At the height of its operations in Poland the company operated from over 450 various format stores as well as an online shopping service.

In November 2019, having suffered years of net losses and despite extensive cost-cutting and attempts at streamlining its business model, Tesco announced it would exit the Polish market and sell its entire operations. In June 2020, the Salling Group acquired Tesco Poland's operations, consisting of 301 stores and two logistics centres for £181 million. After the sale, Salling announced they would close 58 stores and rebrand the remaining 243 as Netto, of which it would expand Netto's Polish operations to over 700 stores. The rebranding and closures were done in phases, with the last stores closing in October 2021.

South Korea

In April 1999, Tesco entered into a 51-49% joint venture with Samsung C&T Corporation entitled Tesco-Samsung, with the latter's supermarket chain Homeplus merging under it. Over the years, Tesco became the majority owner of the business. By 2008, they held Tesco held 94% of the shares in the venture. It was the second largest retailer in South Korea, just behind Shinsegae Group.

In May 2008, Tesco purchased 36 hypermarkets with a combination of food and non-food products from E-Land for $1.9 billion (£976 million) in its biggest single acquisition, making Tesco the second largest in the country. A majority of the E-Land stores formerly belonged to French retailer Carrefour before 2006, and most of the stores were converted to Homeplus outlets. By that time, Homeplus had 66 outlets. In February 2011, The Tesco-Samsung venture was renamed as Homeplus Co, Ltd. In July, Samsung C&T sold their remaining 5.32% stake to Tesco, making Homeplus a fully owned subsidiary.

In September 2015, Tesco sold Homeplus to MBK Partners, a South Korean buyout firm, which partnered with a Canadian pension fund and Singapore's Temasek Holdings in a transaction worth 4.2 billion pounds.

Taiwan

Tesco entered the Taiwanese market in 2000. The chain struggled to survive a saturated market led by other supermarket chains. In September 2005, Tesco announced it would pull out of the market and sell its operations to Carrefour in exchange for their stores in the Czech Republic and Slovakia. Both companies stated that they would focus their efforts on countries with strong market positions.

Thailand

In 1998, Tesco entered Thailand when they purchased a stake in the Lotus Supercenter chain from Charoen Pokphand in the midst of the 1997 Asian financial crisis. Renamed to Tesco Lotus Supercenter and later simply Tesco Lotus, The two companies operated Tesco Lotus under a joint-venture known as Ek-Chai Distribution.

In February 2004, Tesco owned 90% in the business and planned on purchasing out Charoen Pokphand's remaining stake.

By 2009, Tesco Lotus operated 380 stores, claiming to serve 20 million customers every month and that 97% of its goods were sourced from Thailand. By March 2013, the Thailand operations were generating £3 billion in revenues and was one of Tesco's largest businesses outside of the UK. In 2014, Tesco Lotus expanded to the convenience store market with 365, aiming to compete with Family Mart and 7-Eleven in the country.

In March 2020, Tesco announced that it would sell Tesco Lotus back to Charoen Pokphand for US$10.6bn, including debt, in a deal that included Tesco's Malaysian operations. After the deal closed, Tesco Lotus was renamed Lotus's.

Turkey

In November 2003, Tesco announced its entry into the Turkish market by purchasing a stake in the Kipa supermarket chain for £75/£80 million. Talks between the two businesses of a possible merger were signalled as early as 2002. The business was renamed Tesco Kipa and began opening stores using the standard Tesco trading pattern as in the UK. In March 2006, the first Kipa Ekspres convenience stores opened in the country. By December 2008, Tesco Kipa operated 100 stores. The first Kipa Extra store opened in October 2010.

In February 2014, Tesco considered selling a stake in the business to BC Partners, the then-owners of Migros Türk, although the talks were held off in May. In June 2016, Tesco announced that they would exit Turkey and sell its 95.5% stake in Tesco Kipa to Migros Türk. The sale was completed in February 2017.

United States

Tesco entered the United States grocery market in 2007 through the opening of a new chain of convenience stores, named Fresh & Easy, on the West Coast (Arizona, California, and Nevada). The company established its U.S. headquarters in El Segundo, California. The first store opened in Hemet, California in November 2007, with 100 more planned in the first year, a store opening every two-and-a-half days.

The chain proved to be a financial failure for Tesco. In September 2013, the company announced that they would sell the chain and 150 of its stores to private equity firm Yucaipa Companies. The BBC reported that the remaining 50 stores were expected to close. The deal included Tesco loaning the venture £80m and retaining an option to buy back a stake in the business if Yucaipa succeeded in turning around the group's performance. Fresh & Easy filed for Chapter 11 Bankruptcy at the beginning of October.

The chain failed to make a change under new ownership, and in October 2015 it was announced that all remaining stores would close. The chain collapsed into bankruptcy the following week, the second in two years. Following this, the remainder of the chain was liquidated.

In August 2013, Tesco was fined £300,000 after admitting that it misled customers over the pricing of "half-price" strawberries.

Animal welfare

Tesco has received criticism for supplying meat from intensive animal farms. In September 2019, footage from a farm supplying Tesco showed birds being kicked and hurled into crates. Tesco responded by suspending sales from the farm. The following year, an investigation into a chicken farm found fast-growing birds believed to be in chronic pain and others that could barely stand up.

In May 2021, undercover footage at a Tesco supplier showed piglets deemed too small or weak for the abattoir being hammered to death or swung against a concrete floor by farm workers. Tesco responded by ceasing to use the supplier. In July 2021, an investigation by a vegan charity showed chickens at a Tesco supplier being left to die of thirst in overcrowded sheds, with some resorting to cannibalism and many suffering ammonia burns. Tesco launched an investigation.

In 2024, Tesco faced a campaign led by the animal welfare organization Mercy for Animals urging the company to ban the practice of eyestalk ablation, in which the eyestalks of female shrimp are crushed or removed, as well as the use of ice slurry in its shrimp supply chain. Advocates claimed that ice slurry does not effectively render shrimp unconscious before slaughter. In August 2024, Tesco announced a new decapod crustacean welfare policy that bans eyestalk ablation and requires electrical stunning prior to slaughter for whiteleg shrimp starting in 2026 and bans eyestalk ablation for tiger prawns beginning in 2027.

Use of caged eggs

In 2016, following an online petition that called caging hens "cruel, unnatural, and inhumane", Tesco announced that it would begin selling only cage-free eggs in its UK locations by the end of 2025. At the time, 43% of Tesco eggs came from colony cage facilities.

In May 2019, an undercover investigation of a Tesco egg supplier in Asia found that Tesco was serving Southeast Asian customers eggs from battery cage farms. In August 2019, an investigation documented similar conditions at the company producing Tesco's own-brand eggs in Malaysia. In response to the investigation, Tesco committed to using only cage-free eggs in Thailand and Malaysia by 2028.

Price-fixing

In 2007, Tesco was placed under investigation by the UK Office of Fair Trading (OFT) for acting as part of a cartel of five supermarkets (Safeway, Tesco, Asda, Morrisons, and Sainsburys) and a number of dairy companies to fix the price of milk, butter, and cheese. In December 2007, Asda, Sainsbury's, and the former Safeway admitted that they acted covertly against the interests of consumers while publicly claiming that they were supporting 5,000 farmers recovering from the foot-and-mouth crisis. They were fined a total of £116 million.

Corporate tax structure

In May 2007, it was reported that Tesco had moved the head office of its online operations to Switzerland. This allows it to sell CDs, DVDs, and electronic games through its website without charging value-added tax (VAT). The operation had previously been run from Jersey but had been closed by authorities who feared damage to the island's reputation.

In June 2008, the government announced that it was closing a tax loophole being used by Tesco. The scheme, identified by British magazine Private Eye, utilized offshore holding companies in Luxembourg and partnership agreements to reduce corporation tax liability by up to £50 million a year. Another scheme previously identified by Private Eye involved depositing £1 billion in a Swiss partnership, and then loaning that money to overseas Tesco shops, so that profit could be transferred indirectly through interest payments. This scheme was still in operation in June 2008 and was estimated to be costing the UK exchequer up to £20 million a year in corporation tax. Tax expert Richard Murphy has provided an analysis of this avoidance structure.

Tax avoidance has not always been related to corporation tax. A number of companies including Tesco used a scheme to avoid VAT by deeming 2.5% of purchases paid for by card to be a 'card transaction fee', which reduced the company's tax liability without changing the charge to the customer. Such schemes came to light after HMRC litigated against Debenhams over the scheme in 2005.

Opposition to expansion

Tesco's expansion has been criticized, and in some cases actively opposed;

Plans for a large Tesco shop in St Albans, Hertfordshire, attracted widespread local opposition. This led to the formation of the "Stop St Albans Tesco Group". In June 2008, St Albans Council refused planning permission for the proposed new shop.

In April 2011, longstanding opposition to a Tesco Express shop in Cheltenham Road, Stokes Croft, Bristol, evolved into a violent clash between opponents and police. The recently opened shopfront was heavily damaged, and police reported the seizure of petrol bombs. Opponents have suggested that the shop would damage small shops and harm the character of the area.

In March 2015 an arson attack gutted a new Tesco Express shop in Godalming, Surrey, two days before it was due to open. Tesco had purchased a public house and converted it into the new store, a change which did not require planning permission, thus denying the vigorous local opposition any formal means of preventing it. After continuing local opposition, including the local MP and borough council, Tesco abandoned its plans for the shop in January 2017.

Horse meat found in burgers

In January 2013, the British media reported that horse meat had been found in some meat products sold by Tesco, along with other retailers, particularly burgers. Prime Minister David Cameron called this "unacceptable", with products showing 29.1% horse meat in the "Value" range burger, which were supposed to be beef. It was later revealed in February 2013 that some of Tesco's Everyday Value Spaghetti Bolognese contained 60% horse meat. Tesco withdrew 26 of its products in response and announced that it was working with authorities and the supplier to investigate the cause of the contamination.

Guide dogs

Following a 2013 incident when the manager of Tesco in Sutton ordered a blind person and her guide dog to leave the shop, Tesco stated that its staff had received training to ensure that such an incident would not happen again. In 2014, Tesco staff shouted at a customer with a guide dog and told her not to return to the store. Tesco later said: "This clearly should never have happened and we will contact Ms Makri directly to apologise. We do allow guide dogs in stores and have reminded colleagues of that" and donated £5,000 to a guide dogs charity.

Israeli products and boycotts

In November 2025, Tesco faced protests and boycott calls from pro-Palestinian activists after suspending an employee at a store in Newcastle, County Down, Northern Ireland. The worker was placed on suspension pending disciplinary action after refusing to handle products imported from Israel. The Boycott, Divestment and Sanctions movement campaigned against the retailer, demanding the withdrawal of the disciplinary measures and arguing that workers should not be penalized for objecting to the sale of Israeli goods. Protesters gathered outside the branch with political groups and trade union representatives voicing solidarity with the employee, while online petitions gathered thousands of signatures demanding that Tesco cease stocking Israeli products.

Sale of antisemitic books

In 2005, Searchlight magazine said it was "horrified" to discover antisemitic books by US extremist publisher Liberty Bell on the Tesco website. Titles offered for sale included The Hitler We Loved and Why, The International Jew, and The Protocols of the Elders of Zion. Searchlight found another 106 titles by British-based publisher Steven Books which it describes as "so extreme that even the British National Party does not sell them". The shop said in a statement: "Tesco.com has over one million book titles covering a wide range of subjects. We are unhappy that titles which could cause offence to some customers have found their way on to our site and took immediate action to remove them once they were brought to our attention."

Suppliers

The UK Groceries Code Adjudicator found in a 2015–16 investigation into Tesco that some suppliers paid "large sums of money in exchange for category captaincy or participation in a price review". She found that Tesco had breached the code and was unreasonably delaying payments to suppliers and making unilateral deductions.

Amazon rainforest deforestation

In June 2021 there were protests outside Tesco Headquarters in Welwyn Garden City due to the involvement of Tesco in deforestation and forest fires in Brazil, as this is where Tesco sources the soy used to feed livestock for its meat produce.

Allegation of xenophobia

On 21 November 2020, a member of the Romanian diaspora in the United Kingdom said that in the Telford store there was a warning for shoplifters written in Romanian that said "notice for store thieves, you will be legally prosecuted if caught stealing". The Romanian Ministry of Foreign Affairs (MAE) expressed its "surprise and disagreement against the strongly discriminating message". The signs were produced by the West Mercia police.

Partnership with Usdaw

The relationship between the trade union Usdaw and Tesco management, has been met with criticism, with the union seemingly presenting itself as being concerned more with maintaining its positive, comfortable position and easy membership supply than that of fair representation of its members, earning the union the pejorative backronym of Useless Seven Days A Week amongst workers and trade unionists.

E.Coli allegation

In June 2024, a legal firm stated it had sent a letter of claim to Tesco, after a man contracted E.Coli and was hospitalised, claiming that this occurred as a result of eating a sandwich purchased from Tesco. The company stated they had not received the claim.