shops.33
On 9 February 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.34
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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.3536
The lost years
Tesco confirmed in April 2013 that it was pulling out of the US market (Fresh & Easy Stores), at a reported cost of £1.2 billion.37 In September 2013, Tesco announced that it would sell the business to Ronald Burkle’s Yucaipa Companies for an undisclosed amount.38
In September 2013, Tesco launched its first tablet computer, a seven-inch model called Hudl.39
Tesco purchased the restaurant and cafe chain Giraffe in 2013 for £48.6 million.40 In 2014, it began to open restaurants within some of its shops. The company set up Tesco Family Dining Ltd in 2014 as part of a new department called ‘new food experience’, including Core Cafes, Giraffe, Decks and Euphorium bakeries. That year, Tesco reached an agreement to take the in-shop cafes run by Compass Group and Elior back under its own control, so as to improve its dining offering.41
On 1 September 2014, Dave Lewis, previously of Unilever, took over as CEO.42 In January 2015, Lewis announced plans to close the company’s head office in Cheshunt and 43 loss-making shops in the near future, and the cancellation of 49 new large supermarket developments.43 The shop closures were expected to make 2,000 staff redundant, while a further £250 million of cost-cutting measures were planned.44
Tesco also confirmed the sale of its Blinkbox on-demand video service and its fixed-line telephone and broadband business to TalkTalk.45 Tesco sold the Blinkbox Music streaming service to Guvera on 26 January 2015,46 and confirmed it would close its Blinkbox Books service by the end of February 2015.47
In April 2016, Tesco confirmed the sale of 8.6% of its holding in Lazada Group, leaving it with an 8.3% stake. It was also reported to be seeking to sell Dobbies Garden Centres, Giraffe Restaurants and Harris + Hoole to concentrate on its main supermarket business.48
On 27 January 2017, it was announced that Tesco had reached an agreement to merge with Britain’s biggest wholesaler Booker Group to create the UK’s largest food group, there are however concerns over market dominance with Tesco being Britain’s largest food retailer and Booker being the UK’s largest wholesaler.49
It was announced in March 2017 that Trevor Masters, International Chief Executive, would be leaving in May after 38 years with the company. On 1 April, Tony Hoggett became Tesco’s CEO for Asia, and Matt Simister became CEO for Central Europe.50
In April 2017, the company confirmed it would sell its in-shop opticians’ business to Vision Express.51
In June 2017, 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.52
UK operations
As of 2017, Tesco’s UK shop portfolio was as follows:1
Format Number Total
area (m²) Total
area (sq ft) Mean
area (m²) Mean
area (sq ft) Percentage
of space +/- Shops
2016
Tesco Extra 252 1,648,842 17,748,000 6,543 70,429 44.53%
Tesco Superstore 479 1,307,610 14,075,000 2,730 29,384 35.32% Increase 1
Tesco Express 1,740 376,
