Introduction One of the world’s largest retailers of consumer goods from food to fashion. Serving customers, communities and planet a little better every day in our stores and online is at the heart of everything Tesco do. Founded in 1919 by Jack Cohen using the £30 he received on leaving the Royal Flying Corp, it has come a long way from his small market stall in East London. Today over 400,000 colleagues work across our stores, office, distribution and customer engagement centres in the UK, Europe and Asia.
Pestle Analysis PESTLE Analysis of Tesco analyses the brand on its business tactics. Tesco PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
Political factors affecting Tesco
Like the home market, all of Tesco’s overseas markets are politically stable as well. Therefore, it can be said that Tesco is operating in the political environments that are mostly conducive to business.
Likewise, Tesco has proved over the years that it is capable to respond to the current and future legislation, and adjust its business and marketing polices accordingly. However, it is worth mentioning that it had to pull out of Poland because of several market challenges.
Economic factors affecting Tesco
As the global economies have been severely affected by the lockdowns in 2020/21, it is expected that many people’s earnings are likely to go down, and many may lose (or may have already lost) their jobs. This may result in less spending by customers or switching to cheaper brands. This may severely affect the operations and profits of Tesco. Social factors affecting Tesco
has taken several initiatives in recent years in response to social changes and demands. For example, due to high demands, it sells branded halal meat to Muslim customers or have independent meat counters in some stores in the UK. Likewise, it sells both branded and own-label halal meat in Malaysia and Thailand. Technological factors affecting Tesco
Tesco’s self-service checkout points provide customers with convenience and help itself reduce costs. Likewise, its website is well organized, which helps consumers find what they look for and provides an easy experience that encourages loyalty.
However, technological glitches can stall business operations and hurt consumer confidence. For instance, Tesco’s website and app were hit with outages in October 2021 making customers unable to place any orders (Coles, 2021). Similarly, home deliveries for thousands of customers were cancelled in 2017 because of a computer glitch.
