HISTORY

In the year 1920s, Tesco's founder Sir Jack Cohen had already begun to set up high street grocery

stores in and around London. The Tesco name was used for the first time in 1929 in Edgeware,

London. The name was drawn from the initials of the company's tea supplier (T.E.Stockwell),

and Cohen's own name. In 1932, Tesco was formally established as a private limited company.

During the rest of the decade, the company continued to grow, adding more than 100 stores,

mainly in London. After visiting the US in 1935 to study its self-service supermarkets, Cohen

developed Tesco's "pile it high and sell it cheap" format. This format became the core of Tesco's

retail philosophy for many years to come.

Tesco continued to grow after World War II. The retail chain appealed to price-conscious

working class customers. After the war, the company was listed on the London Stock Exchange

as Tesco Stores (Holdings). By 1950, Tesco was already operating 20 self-service stores. During

the 1950s and the 1960s, Tesco grew primarily through acquisitions. It acquired 70 Williamsons

stores in 1957, 200 Harrow Stores in 1959, 212 Irwins outlets in 1960, 97 Charles Phillips stores

in 1964, and the Victor Value chain of discount stores in 1968 (sold in 1986). By the 1960s,

Tesco had become a chain of over 800 stores.

During the 1970s, Tesco's customers began to look for quality and choice, but Tesco failed to

satisfy their needs. In fact, in the early 1980s, Tesco looked like winding up. Consumers had a

negative image of Tesco, which competed almost exclusively on price. Poorly maintained stores

and an inadequate assortment of poor quality items reinforced this general perception.