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Tesco Malaysia Case Study

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Introduction Tesco Stores (Malaysia) Sdn Bhd owns and operates hypermarkets in Malaysia. It offers fresh produce, groceries, household items, and apparel and its own food and non-food products. The company was incorporated on 29thNovember 2001, as a strategic alliance between Tesco PLC UK and local conglomerate, Sime Darby Berhad of which the latter holds 30% of the total shares. Tesco opened its first store in Malaysia in February 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 49 Tesco and Tesco Extra stores nationwide. In year 2003, Tesco launched Tesco own brand, Tesco Value. In 2004, Tesco Malaysia launched its own house brand, Tesco choice. In December 2006, Tesco also acquired Makro Cash & Carry in Malaysia, a local wholesaler which was rebranded to Tesco Extra and provides products for small local retailers.In 2007, Tesco launched customer loyalty card, ‘ClubCard’. Club card has received an overwhelming response from customers with over 2 million household members signed up to date. As of January 2009, Tesco have rewarded nearly RM10 million worth of Club card Cash Vouchers to the customers. Later in year 2010, Tesco introduce Green Club card and the Green Club card scheme. Tesco launched Green Club card Points to incentivize customers shopping with their own bags, introduce degradable carrier bags, and promote positive behaviour among employees through Energy League competition and a recycling centre to

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