In the subject of Retail and Distribution Strategy, we have been given a written assignment task. This assignment requires us to select a retail store in Malaysia and write a report that covers all the significant areas in retailing. Our group has agreed to choose Tesco Extra Ampang as the retail store for this assignment because Tesco is a well-known retail store in Malaysia. When people mentioned about hypermarkets in Malaysia, Tesco is surely to be the former one that comes into our mind. We do believe that by choosing a retail store that we have experienced with would facilitate the process of the assignment. In addition, there is much information available from various sources. The objectives for this assignment are to promote an understanding of the role of retailing in the supply chain system, to enable us to analyze the retail environment and further understand that how it affects retail business, and to assist us in develop retail marketing mix strategies and customer service.
2.0 BACKGROUND OF TESCO EXTRA AMPANG
Tesco is one of the world’s well-known retailers with operations in 14 countries across Europe, Asia, and North America. Headquarter of Tesco Stores (Malaysia) Sdn Bhd is in the United Kingdom. In Malaysia, Tesco operates its business in partnership with Sime Darby, a local enterprise group that holds 30% stake in business. It was introduced on 29 November 2001 and officially started off its operation with the first hypermarket in Puchong, Selangor in 2002. The revenue earned of Tesco Malaysia is shown at Tesco official website with the amount of £ 891 million from 2011 to 2012 (Tesco 2012). Tesco is considered as corporate retail chains where many outlets are being opened up across different geographical area in Malaysia. The head office of Tesco Malaysia is located at Level 3, No 3, Jalan 7A/62A, Bandar Menjalara, 52200 Kuala Lumpur, Malaysia (Tesco Stores (Malaysia) Sdn Bhd, 2012). Currently, Tesco operates 46 outlets across Peninsular Malaysia in two formats, which are Tesco Hypermarkets and Tesco Extra Hypermarkets. Tesco Ampang is being launched in Malaysia on 25 August 2006 in Tesco hypermarkets format which offers customers a completely one stop shopping. It is located at PT 8880, Jalan Pandan Prima, Dataran Pandan Prima, 55100 Kuala Lumpur. However, it has been upgraded to Tesco Extra Ampang after the launching of Tesco Extra in the year of 2007. Generally, Tesco Extra comes with the concept of providing “value added services” to the customers. It is more on catering to small business, families as well as individual customers by providing them a comprehensive selection of products and services (Tesco Stores (Malaysia) Sdn Bhd, 2012). Besides, Tesco Extra Ampang is also a full- line discount store that offers a broad variety of merchandise, limited services and at the lowest price.
2.2 Vision and Mission
Tesco Extra Ampang’s core purpose is to create value for customers to earn their lifetime loyalty (Tesco Stores (Malaysia) Sdn Bhd, 2012). Due to that, it has established a set of values. (Appendix 1) |
2.3 Corporate Social Responsibility
To contribute social welfare to the communities, Tesco Extra Ampang also engages in corporate social responsibility. It is committed in encouraging the customers in going green. The first recycling centre of Tesco was launched at Tesco Extra Ampang on May 2008 (Appendix 2). The centre includes an office, basic utilities and recycling bins to help the customers segregate their waste (Tesco Stores (Malaysia) Sdn Bhd, 2012). Also, there is a range of alternative Green Bags to reduce the use of plastic bags at Tesco Extra Ampang. It provides rewards to customers who use their own carrier bags or Tesco reusable bags with Tesco Green Clubcard Points (Appendix 3).
3.0 RETAIL ENVIRONMENTAL FORCES
3.1 Political / Legal Forces
Local political condition is a factor that influences...