Azara Blog: Tesco makes an awful lot of money

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Date published: 2005/04/11

The BBC says:

The people at Tesco think big. The company's hypermarkets are big, its share of the UK market is big, and its profits are big.

So big, in fact, that Tesco is expected to unveil record annual profits on Tuesday of around £2bn ($3.7bn).

Under its tough but respected chief executive, Sir Terry Leahy, Tesco is thought to account for one in every eight pounds spent in Britain's shops, while it has been expanding abroad rapidly.

The company sets great store by its commitment to competitive prices, customer service and efficiency.

But as Tesco prepares to please its shareholders with yet another set of glittering earnings figures, not everyone will be celebrating.

Not everyone will be celebrating because the chattering classes (e.g. the people who work for the BBC) hate big companies and even more hate big successful companies. And cheap food is just ever so working class. And there is the common complaint from farmers (but farmers always complain about everything) that Tesco squeezes them so that prices can be made low. Funny, that's how capitalism works. And as long as Tesco is not a monopoly (and they are far from that nationally) then there is no great reason to assume they should be restricted in their business practises. (If they are a local monopoly that is a different matter.)

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