Tesco is a well-known presence in the UK, with over 3,000 stores and a significant market share in retail and grocery sales. Recent data indicates that the supermarket chain has captured almost one-third of the country’s grocery market and accounts for more than £1 in every £10 spent in UK retail. This growth marks a notable recovery for Tesco, which previously faced challenges due to a focus on international expansion and an accounting scandal in 2014 that nearly undermined its standing.
Historically, the term “Tescopoly” emerged to address concerns about how Tesco’s dominance affected local businesses, particularly as the company expanded into various sectors beyond groceries. Tesco has built numerous large superstores and invested in diverse ventures, including banking and mobile services, contributing to its expansive business model. However, some of these endeavors have since been curtailed, and regulatory changes have limited Tesco’s ability to block competitors by hoarding land.
Currently, Tesco aims to reclaim a market share of over 30%, with its closest rival, Sainsbury’s, at around 15%. The company is pivoting towards small store formats, expanding its number of Tesco Express locations to better serve changing consumer habits. Online shopping is also a growing area for Tesco, which now captures 37% of the UK’s online grocery market.
The effectiveness of its Clubcard loyalty program, which now engages 24 million households, further strengthens Tesco’s competitive position. While some critics highlight issues of inequality in profit distribution, particularly during economic strains, Tesco asserts that its strategies are focused on customer value and competitive pricing.
As Tesco navigates a complex retail landscape with challengers like Aldi and Lidl expanding, industry experts suggest that the competitive environment could shift significantly in the coming years. Observers are monitoring Tesco’s evolution and its potential impacts on the wider market, especially in light of broader economic conditions.
Source: https://www.theguardian.com/business/2025/oct/19/tesco-britain-biggest-retailer-dominates