How a pile of war-surplus groceries became a global retail empire
Tesco began in 1919 as a humble market stall selling leftover war supplies. Today, it stands as a retail titan, having pioneered everything from the modern loyalty card to the world's first home-delivered online grocery order. Its evolution from a discount stall to a multinational giant reveals the mechanics of scale.
The Tesco story began in London’s Hackney market, where founder Jack Cohen sold surplus goods from a stall. The name itself is a portmanteau, created in 1924 by combining the initials of tea supplier Thomas Edward Stockwell with the first two letters of Cohen’s own surname. Driven by a blunt internal motto—'You Can't Do Business Sitting On Your Arse'—Cohen expanded rapidly, moving from his first permanent indoor stall in 1930 to the first dedicated Tesco shop in 1931. By 1947, the company had floated on the London Stock Exchange, setting the stage for decades of aggressive growth through both organic expansion and the acquisition of chains like Williamson's and Irwins.
Tesco’s strategy shifted significantly in the 1990s as it moved away from being a purely low-cost retailer. By launching the 'Tesco Value' and 'Tesco Finest' ranges, the company successfully courted a broader spectrum of social groups. This era also saw the introduction of the Clubcard in 1995, a pivotal innovation in data-driven retail. The company’s reach became truly global, though not without friction. While it successfully dominated the UK grocery market—holding a 28.4% share by 2023—its international ventures were mixed. A high-profile attempt to crack the US market with 'Fresh & Easy' ended in a £1.2 billion exit in 2013, illustrating the immense difficulty of replicating a domestic retail model abroad.
Beyond traditional groceries, Tesco has consistently diversified its footprint. It entered the petrol market in 1974, eventually partnering with Esso to integrate fuel forecourts with its Express convenience stores. Its digital footprint is equally storied; in 1984, Jane Snowball performed the world's first recorded online grocery transaction using Videotex technology. Today, the company continues to refine its logistics through Urban Fulfilment Centres, which serve as dedicated hubs for home delivery. Despite recent divestments in international markets like China, Thailand, and Poland, Tesco remains a dominant force, constantly recalibrating its massive infrastructure to maintain its position as the 15th largest retailer in the world by revenue.
Source: Tesco
