A 2015 BBC Panorama episode reporting the difficulties facing Tesco, one of the UK’s largest companies and its market leading supermarket chain. The chain has lost customers, its share price has slumped and its profits are down. The business has also been criticized for the way that it treats suppliers.
What caused this crisis, why did Tesco lose the trust of its customers? Ultimately Tesco failed to react to changes in the market, failed to keep prices down (Asda was 6% cheaper at one point), and didn’t listen to its loyal customers. Budget supermarkets such as Aldi and Lidl saw huge growth in the UK, whilst Tesco failed to react to this radical change in the marketplace, where low cost supermarkets like Aldi and high end supermarkets like Waitrose gained market share but the mid-range market shrank.