Tesco is a large U.K. grocery firm and retailer whose main competitors are Sainsbury’s, ASDA, and ALDI. Morrison and Lidl also compete for market share in the United Kingdom. The convenience store market is highly fragmented.
As of Apr. 2023, Tesco is the U.K. grocery market leader with a 27% market share, followed by Sainsbury's and ASDA,which hold 14.9% and 14.%, respectively, of the market share.
Key Takeaways
- Tesco is the U.K. grocery market leader, with a 27% market share as of April 2023.
- Tesco's main competitors are Sainsbury’s, ASDA, and ALDI.
- ALDI and Lidl are in the discount niche and compete with Tesco.
Sainsbury's
Sainsbury’s is the second-largest grocery chain in the United Kingdom, with over 600 supermarkets and 800 convenience stores. To increase customer engagement, Sainsbury's implemented its Food First strategy so that consumers can obtain high-quality products wherever and whenever they need them. Sainsbury's portfolio brands include Argos, Habitat, Tu, Nectar, and Sainsbury’s Bank to support its core food business.
ASDA
In 2021, ASDA was purchased by TDR Capital, and Walmart holds a majority stake in the company. Asda employs more than 145,000 colleagues that serve over 18 million customers at Supercentres, Superstores, and smaller supermarkets. The company's portfolio includes Asda Living stores across the United Kingdom.
ALDI
ALDI, headquartered in Germany, operates over 10,000 stores in 19 countries. ALDI fills the discount grocer niche, offering low-priced items with a disproportionately high private label offering. ALDI's exclusive brands include Simple Nature, liveGfree, and Specially Selected.
Morrisons
Morrisons operates 650 Morrisons Daily stores with a focus on convenience. The company participates in food production and has partnered with British Corner Shop to grow its global distribution network. Morrisons has new retailers in Singapore, Malta, Hong Kong, Cyprus, and St Helena and supplies them with British products.
Lidl
Lidl operates over 12,000 stores in 31 countries. Headquartered in Germany, the company belongs to the Schwarz Group, which also operates the hypermarket chain Kaufland. Across Great Britain, Lidl operates 960 stores and 13 regional distribution centers. Like ALDI, Lidl is a discount grocer that does not prioritize shopper experience or presentation.
Who Founded Tesco?
Jack Cohen founded Tesco in 1919.
Where Is Tesco's Headquarters?
Tesco is headquartered in Welwyn Garden City, England.
How Many Employees Does Tesco Have?
Tesco is a multinational retailer, employing more than 330,000 colleagues.
The Bottom Line
In 2023, Tesco is the grocery market leader in the United Kingdom with a 27% market share. The company's competitors include Sainsbury’s, ASDA, ALDI, Morrisons, and Lidl.
