WATCH OUT WAL-MART: TESCO TRAIN GOES TRANSATLANTIC

I’ve never shopped at a Tesco supermarket - the nearest I’ve ever got to Britain’s most successful retailer is buying (competitively priced) petrol at one of its Express stores.

I am obviously in a minority because figures show that around one pound in every eight spent by Brits in the retail sector is spent at Tesco - a staggering and in some way depressing statistic, but with Tesco enjoying twice the market share of its main rivals (Asda and Sainsbury’s) combined, one not to be sniffed at.

Mind you, this market dominance is receiving close and deserved attention from the Competition Commission amid fears of ‘Tesco Towns,’ which kill off smaller stores, springing up all over the UK.

Tesco is now going to take on Asda owner Wal-Mart in its own backyard – this week (on November 8) Tesco opens its first Fresh & Easy store in California with a roll out of the chain into Arizona and Nevada over the coming weeks and months.

As I’ve said, though I’m not a regular Tesco shopper - nearest supermarket to my home is a Sainsbury’s and I can’t be bothered to go any further - I do know a bit about why it’s so successful. Tesco gives its customers what they want and when they want it at a price they believe to be fair. Tesco prides itself on keeping its shelves stocked all day - I make sure I get to my local Sainsbury’s within a couple of hours of opening time to avoid disappointment!

The most important word in Tesco’s eyes is ‘customers.’ Tesco has spent more time and effort than any other retailer - including Wal-Mart - in finding out what makes them tick and what makes them come back. Its loyalty card is universally recognised as just about the best in the business, and Tesco cleverly bought a controlling interest in the company (Dunnhumby) that developed key parts of the technology around the card - technology that has allowed Tesco to segment its many millions of customers into individual groupings of around 15 people.

Tesco understands that customers have all the money – and they want as much ‘share of wallet’ as they can possibly get their hands on.

It’s no wonder that Tesco chief exec Sir Terry Leahy, who started off in a minor marketing role at the retailer and did his fair share of shelf stacking, has twice won the accolade of Business Leader Of The Year at the prestigious National Business Awards. He and his team are tuned into their customers wants and needs, and prepared to deliver …Wal-Mart better watch out.