Logistics in Tesco: Past, Present and Future

This chapter aims to explain and account for the changes in physical distribution in food retailing. It develops earlier work both broadly and specifically (eg Sparks, 1986) by examining general changes in distribution, before focusing in particular on how one company, Tesco plc, has transformed its distribution operations in order to satisfy modern consumer and retail demands. The chapter argues that change has, and will continue to have, an effect on corporate operations as well as on consumers and manufacturers. Concomitant with the rise of the unit size has been the movement of such stores to off-centre locations. The movement away from the high streets has improved the distribution position in many cases. The retailer development of own brands has clear distribution effects. Since own brands are within the control of retailers for longer than manufacturer brands, closer control can be exercised throughout the distribution channel.