The use of computers in supermarket groups: A close look at the Sainsbury and Tesco systems

Computers have been used in food retailing groups for the past 13–14 years. Companies such as Sainsbury and Tesco Stores began by implementing distribution and basic accounting systems on mark sense cards and early computing equipment like the Emidec 1100. From these elementary beginnings the large companies have now developed sophisticated and integrated systems based on substantial investment on computer equipment and computer software. The emphasis in computing development however, throughout the last decade, has been on distribution systems. In addition substantial effort has gone into accounting and management information applications. The degree of centralised control of the trading operation within each group, has to a very large extent dictated the data processing policy pursued by individual organisations. Other factors have been the number and size of the retail stores owned by each company and the detailed trading strategy followed by each group, such as the ratio of own label to branded goods. The effect of these factors in practice can best be illustrated by a description of the different computer‐based distribution systems operated by the major groups.