Tesco sets its sights on the financial sector
After reporting pre-tax profits of £1.42 billion for the six months to August 29, only fractionally up on last year's figure, Tesco has revealed plans to attack the UK financial sector and in particular the UK banking industry. Hot on the heels of a decision by the competition commission to block many new store applications and expansion plans, it would seem as though leading UK supermarkets are looking to the future and different areas of the economy. So will this work?
When you consider the millions upon millions of people who use the likes of Tesco, Asda and Sainsbury each and every day, there is access to a massive number of potential customers. Aside from the fact that leading UK supermarkets have already gained the "trust" of their customers they are able to offer very competitively priced services and products. Indeed, the likes of Tesco have already announced joint ventures with leading UK insurance companies and other financial institutions to try and make the most of each company's strengths.
Contrary to popular belief, the likes of Tesco have not always been successful when attempting to break into new business arenas, with many of their failures being "buried at night". However, it would seem that companies such as Tesco have learned from past mistakes and are becoming more astute and streetwise with each and every new venture.
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