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
2.1 History
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).