The History of Aldi
The History of Tesco: From Market Stall to Global Retail Giant Tesco, a British multinational grocery and general merchandise retailer, is a cornerstone of the UK retail landscape, commanding a significant share of the grocery market and operating thousands of stores worldwide. Founded in 1919 by Jack Cohen, Tesco’s evolution from a single market stall in London’s East End to a global retail powerhouse is a remarkable tale of entrepreneurial grit, strategic innovation, and resilience in the face of economic and competitive challenges. The Origins: Jack Cohen and the Birth of Tesco (1919–1929) Tesco’s story begins with Jack Cohen, born in 1898 to Polish Jewish immigrants in Whitechapel, London. After serving in the Royal Flying Corps during World War I, Cohen returned to civilian life with a £30 demobilization gratuity. In 1919, at age 21, he invested this sum in surplus groceries, which he sold from a market stall at Well Street Market in Hackney, East London. On his first day, Cohen earned a £1 profit on £4 in sales, revealing his natural flair for trading. This modest venture laid the foundation for what would become a retail empire. Cohen’s early success stemmed from his ability to source affordable goods and sell them at low prices, appealing to working-class consumers. By the early 1920s, he expanded to other East End markets, including Hoxton and Tooting, employing barrow boys to manage stalls. In 1924, Cohen created the Tesco brand name, a portmanteau derived from the initials of his tea supplier, Thomas Edward Stockwell (TES), and the first two letters of his surname (CO). The first Tesco-branded product was tea, packaged by Cohen’s wife in their kitchen. In 1929, Cohen opened his first permanent Tesco store at 54 Watling Street, Burnt Oak, Edgware, Middlesex. This marked a significant shift from transient market stalls to a fixed retail presence, enabling Tesco to serve growing suburban communities. The store’s success prompted Cohen to adopt a bold expansion strategy, underpinned by his philosophy of “pile it high and sell it cheap,” which prioritized high sales volumes at low margins. The 1930s: Rapid Expansion and Early Innovations The 1930s were a transformative decade for Tesco, as Cohen capitalized on the UK’s suburban growth. Rising middle-class populations in areas like Becontree, Edmonton, and Palmers Green created demand for affordable groceries, which Tesco met with new stores across Greater London and southeast England. By 1932, Tesco became a private limited company, formalizing its operations. Cohen’s hands-on approach, encapsulated in his internal motto “YCDBSOYA” (You Can’t Do Business Sitting On Your Arse), drove a culture of relentless sales growth. By 1939, Tesco operated approximately 100 stores, primarily small high-street shops stocked with dry goods like tea, sugar, and biscuits. Cohen’s entrepreneurial spirit led to early innovations, such as sourcing products directly from manufacturers to cut costs and offering discounts to attract customers. These strategies positioned Tesco as a value-driven retailer, distinct from traditional grocers who prioritized quality over price. The decade also saw Tesco navigate economic challenges, including the Great Depression, which heightened consumer demand for affordability. Cohen’s ability to maintain low prices while expanding his store network laid a strong foundation for Tesco’s post-war growth. World War II and Post-War Transformation (1940s–1950s) World War II disrupted Tesco’s expansion, as rationing and resource shortages limited retail activity. Cohen adapted by focusing on essential goods and maintaining customer loyalty through fair pricing. After the war, Cohen’s 1946 visit to the United States proved a turning point. Inspired by the efficiency of American self-service supermarkets, which reduced labor costs and improved customer flow, he resolved to modernize Tesco’s operations. In 1948, Tesco opened its first self-service store in St Albans, Hertfordshire, a radical departure from traditional counter-service shops. The store allowed customers to select goods themselves, streamlining operations and enhancing the shopping experience. The St Albans store remained operational until 2010, a testament to its enduring significance. In 1956, Tesco opened its first true supermarket in Maldon, Essex, a converted cinema that offered a broader range of fresh and packaged foods. The post-war economic boom and rising consumer spending fueled Tesco’s growth. In 1957, Tesco Stores (Holdings) Limited was floated on the London Stock Exchange at 25p per share, raising capital for further expansion. The 1950s saw Tesco acquire 70 Williamson’s stores (1957), 200 Harrow Stores outlets (1959), and other small chains, increasing its footprint to over 400 stores by decade’s end. These acquisitions targeted regional markets, particularly in southeast England, where Tesco consolidated its dominance. Cohen’s vision extended beyond groceries. In the late 1950s, Tesco began experimenting with non-food items, introducing clothing and household goods in select stores. This diversification foreshadowed Tesco’s later transformation into a general merchandise retailer. The 1960s: Supermarkets, Superstores, and Policy Influence The 1960s marked Tesco’s emergence as a national retailer, driven by the supermarket boom and changing consumer habits. In 1960, Tesco opened a 1,600-square-meter supermarket in Leicester, earning a Guinness World Record as Europe’s largest store at the time. The store’s scale reflected Tesco’s ambition to offer a one-stop shopping experience, combining food and non-food products under one roof. Tesco’s acquisition strategy accelerated, with purchases including 212 Irwin’s stores (1960), 97 Charles Phillips stores (1964), and the Victor Value chain (1968, later sold to Bejam in 1986). By the late 1960s, Tesco operated over 800 stores, ranging from small high-street shops to larger supermarkets. In 1968, Tesco pioneered the “superstore” concept with a 40,000-square-foot store in Crawley, West Sussex, designed to serve car-owning suburban shoppers with extensive product ranges and parking facilities. Tesco also influenced UK retail policy during this period. In the early 1960s, Cohen lobbied Parliament, alongside Conservative MP Edward Heath, to abolish Resale Price Maintenance (RPM), a regulation that prevented large retailers from undercutting smaller shops. The 1964 Resale Prices Act ended RPM, enabling Tesco to offer competitive discounts and gain market share. This legislative victory underscored Tesco’s growing influence in the retail sector. The decade also saw Tesco introduce “Home ‘n’ Wear” departments in larger stores, expanding its non-food