Tesco 2009 Annual Report Download - page 16
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14 REPORT OF THE DIRECTORS
Some examples of these projects which have delivered substantial
savings in the year include:
reconfiguring of our depot network to increased vehicle utilisation and
more productive work methods in depots and stores – mean that,
for example, distribution costs have been held in cash terms and
reduced in percentage of sales terms. This has been achieved despite
higher fuel costs.
energy-saving projects across the business – in new refrigeration,
store lobbies and lighting – delivering significant reductions in
consumption and helping us to absorb rising utility costs. Energy
consumption in Tesco fell by 8% last year despite business growth.
Centre in Bangalore, India, which provides IT and administrative
support to our UK and International operations – from software
development to management accounting and payroll.
faster, more accurate and easier for staff, has continued to reduce
costs and improve customer service. For example, around 25% of
our UK customer transactions are through self-service checkouts.
UK performance
In the UK, Tesco coped well with recovering competitors and a difficult
non-food market, particularly in the second half, to deliver solid
progress in the year. UK retail sales grew by 9.1%, including a like-for-
like increase, including petrol, of 4.3% (3.0% excluding petrol). Both
customer numbers and spend per visit increased and we also delivered
robust margin and profit improvement.
Core UK continued
£400m
We have given our Clubcard customers over £400 million
worth of vouchers in the year.
Tesco PLC Annual Report and Financial Statements 2009
70%
of our products are delivered to stores in retail-ready packaging,
including all of our new ‘Discount Brands’ saving many hours
of staff time re-filling shelves.