Tesco is a British multinational grocery and merchandise retailer. The big retail chain is facing many problems, economically and lack of customer service. It´s shares have fallen with whole 20 percent, which is bad, because some of their shareholders could sell their shares in the fear of losing more money. This act will cause another drop in their stocks.
The customers say that Tesco is letting their standard slip by firing many workers in the middle of the financial crisis, so the staff is not enough, many of their shelves are empty. Especially the staff cuts had left the stores a miserable place to shop. Many of their customers were disappointed. It was so bad that some shoppers had ranked Tesco 99th out of 101 store groups based on customer service. Some of the retail experts say that Tesco´s stores are "too industrial" and "lack warmth". So in general the shopping experience and quality have fallen. The other big mistake Tesco made was opening Fresh & Easy in USA. Fresh & Easy is also is a chain of grocery stores and most of them are located in the western side of the USA. Philip Dorgan said that Tesco should sell more frozen products to the Americans, because the American consumers like frozen food, more than the fresh food, which fitted better to the Brits. That left him thinking why Tesco got it wrong. The grocery chain was opened in the middle of the crisis, which was the worst time possible. Their stocks took a dive, which scared the investors. Tesco is also suffering with lower growth, but that is because they have decreased their investments. One of Phillip Clarke´s focus´ is to give the smaller stores more attention by making them more welcoming, he also wants the stores to have more fresh food. He wants the costumers to leave the shops with a beautiful experience. He will give them the best experience by having softer colors in stores, recruiting more than 20.
