Tesco vs ASDA: UK's Retailing Battle
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Code : COM0099
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Region : US
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Introduction:The competition in the retail sector of UK increased with the entry of Wal-Mart through its acquisition of ASDA[Associated Dairies] in 1999. ASDA's focus on providing 'every day low prices' to the customers had helped it to become the second leading retailer behind Tesco. Tesco, which was established earlier than its competitor ASDA, became the leading retailer in 1991. Since then it has remained at the top position. Tesco's strategy has focussed mainly on quality, service and provision of low prices.Whereas,ASDA had focussed only on the provision of low prices and ignored quality. The continuous decline in the consumer spending had affected the sales of themain retailers in 2005. While ASDA recorded low sales throughout the three quarters of 2005, Tesco sales declined only in the third quarter. |
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