Tesco 2000 Annual Report Download - page 6

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TESCO PLC
4
2000 1999 Change
Rest of Europe performance £m £m %
Retail sales
(including value added tax) 1,527 1,285 18.8
Operating profit 51 48 6.3
Europe
In the Rest of Europe total sales rose by 18.8% to £1,527m
(1999 – £1,285m) and contributed an operating profit of £51m
up from £48m last year.
Retail sales in the Republic of Ireland in local currency grew by
6.1%. We have now re-branded nearly 50 stores and our customers
continue to benefit from the extended range, improved service and
better value.
In Central Europe total sales at constant exchange rates were
up 76.8%. This represents strong growth from our increasing number
of hypermarkets in the region. We opened 11 new hypermarkets
in the year giving us 19 in total with 2m sq ft.
Asia
Our Tesco Lotus business in Thailand now comprises 17
hypermarkets and has shown strong sales growth of 96% on last
year to £357m. We currently have 2.1m sq ft of selling space in
Thailand which will increase to 2.8m sq ft by the end of 2000.
On 23 March 1999 we announced we had formed a partnership
with the Samsung Corporation to develop hypermarkets in South
Korea. Tesco has now invested a total of £142m, including costs
of £4m, for an 81% controlling interest. In the 32 weeks to
31 December 1999 the two acquired trading stores contributed
£140m to Group sales.
In 1999, our Asian businesses contributed sales of £497m,
nearly 200% up on the previous year and made a small loss of
£1m (1999 – £2m loss). However, we anticipate Thailand moving
into profit in 2000 with the region as a whole being profitable
soon after as our development programme gathers pace.
We are continuing with our research in Taiwan and Malaysia
and plan to open our first stores in Taiwan in 2001. New research
projects are also underway in China and Japan.
2000 1999 Change
Asian performance £m £m %
Retail sales
(including value added tax) 497 170 192
Operating loss (1) (2) 50
POPULATION 68m
NUMBER OF STORES 167
SQUARE FOOTAGE 000s 4,887
STORES OPENED/SQ FT ADDED 11 / 1,264,000
CAPITAL EXPENDITURE £m 313
TURNOVER £m 1,527
OPERATING PROFIT £m 51
Rest of Europe fact file
POPULATION 130m
NUMBER OF STORES 19
SQUARE FOOTAGE 000s 2,257
STORES OPENED/SQ FT ADDED 5 / 502,000
CAPITAL EXPENDITURE £m 186
TURNOVER £m 497
OPERATING LOSS £m (1)
Asian fact file
operating and financial reviewcontinued