TESCO sets to emerge as top FMCG retailer

This information is collected with the assistance of article published on 16-07-2007 under the heading “Tesco set to emerge as top FMCG retailer “by Mr. Kelvin Tan.
The Tesco hypermarkets are set to emerge as the leading retail chain in terms of fast moving consumer goods (FMCG) market share of sales in Malaysia by mid-2008, according to an international retail consultancy. TNS World panel Malaysia general manager Michael Hawkins said Tesco posted the biggest jump in FMCG sales among the major retailers here when it grew 37% as of May this year from a year earlier. He said Tesco would soon overtake Giant retail chain, the current market leader, which only chalked up a 10% rise against the industry sales growth of 5%. Giant’s share in FMCG sales was also eroded by intense competition from other hypermarket operators such as Mydin and Jusco, he added.
The leading retailer in the UK and the third largest grocery retailer in the world, the Tesco chain here is operated by Tesco Stores (Malaysia) Sdn Bhd, a 70:30 joint venture between Tesco plc and Sime Darby Bhd. Giant is operated by GCH Retail (Malaysia) Sdn Bhd, a unit of Hong Kong-based Dairy Farm International Holdings Ltd (DFI). Besides Giant, DFI also controls the Guardian pharmacy and Cold Storage supermarket chains in Malaysia. According to TNS Worldpanel Malaysia’s latest report on retailers’ FMCG market share as at May 21, 2007, Giant’s total FMCG sales only grew by 0.4 percentage points to 9.8% from 9.4% a year ago. For Tesco, its market share rose 1.7 percentage points to 7.1% from 5.4% a year earlier. Even Mydin, which is a local chain, is growing faster than Giant as it has raised its market share by 1.4 percentage points to 2.9%. “Tesco is growing very fast because of its store openings and conversions of Makro stores (which Tesco acquired last year),” Hawkins said.

What are the features that the hypermarket should have for maximizing the customer satisfaction and be the number one in the retail world?