After reporting annual profits of over £2.5 billion earlier this year there must surely come a time when the giant that is Tesco will simply run out of markets to dominate? Not yet say the management……

While the supermarket business is obviously the core area of profitability and where they get their reputation from, it has spawned a vast array of new and potentially very lucrative business ventures. The Tesco brand has now broken into areas such as Tesco loans, Tesco insurance and just lately Tesco diets to name but a few.

These are not small markets, these are markets which have major players already, they have been around for years but Tesco has still managed to take a major foothold. The beauty of the Tesco business model is the fact that their customers are very loyal, the majority have signed up to their club card service and they actually trust the Company. This has opened the door to direct mail shots, telephone sales and heavy promotions in store.

A trip to the supermarket now may not be all about food and drink, it can see you come home with credit cards applications, a new bank account and even cover for your next holiday. There is also immense speculation that Tesco are looking to break into the property market and potentially take on a role similar to that of an estate agent. So where will it all stop?

The fact that Tesco have started to expand into the United States and a whole host of other overseas markets is a sign of their intent. It may also have something to do with the fact that they have come under increased pressure from UK regulators who are concerned at their strangle hold on a number of areas of the UK market.

At this moment in time it seems that Tesco can do no wrong, how long that lasts remains to be seen, but if their future plans come to fruition, their profits will be growing for some time yet!