Tesco 2013 Annual Report Download - page 23

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Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Supplier Viewpoint
71%
Definition
The percentage of positive scores from
our annual survey of suppliers, Supplier
Viewpoint, when we ask whether Tesco
treats them with respect.
Performance
We were just behind our stretching target
of 74% and we are confident that we
have good plans in place to improve our
performance in 2013/14 and beyond. We
know that we will only succeed if we have
strong relationships with our suppliers.
We are launching a new Commercial
Food Support Office and simplifying our
systems to make it easier for suppliers
to do business with us. We will work more
closely with suppliers to develop joint
business plans and recognise success
through our Supplier Values Awards.
Donation of pre-tax profits
to charities and good causes
£78.1m
Definition
Our contribution to charities and good
causes through direct donations, cause-related
marketing, gifts-in-kind, staff time and
management costs.
Performance
We have donated £78.1 million to charities and
good causes this year, compared to £74.6 million
in 2011/12.
As a proportion of statutory profit before tax
our donations represent 4.0% – an increase
on last year’s figure of 1.9% reflecting the decline
in profits this year. This equates to 2.2% of
underlying profit before tax, similar to 1.9% on
the same basis last year. We expect to maintain
a broadly similar level of contributions going
forward with the percentage proportion returning
to our usual historical levels in the coming years.
Total cash donations for 2012/13 were
£22.2 million.
6. To be a creator of highly valued brands
Customer loyalty
8
markets – 1st
or 2nd place
Source: Market research
(GFK, Ipsos, Kantar).
Definition
The number of markets where we are
placed first or second for the proportion
of customers who do over 50% of their
shopping with a single retailer.
Performance
Building customer loyalty is at the heart
of Tesco and we are already ranked first
in seven of our markets. This is an
important indicator of the strength of
the Tesco brand. We earn our customers’
loyalty by delivering a great shopping
experience and rewarding them for their
custom. We now have loyalty schemes
in each of our markets.
Group-wide own-label
participation
38%
Tesco own-label
brands
Definition
Own-label sales as a proportion of total Group
sales. Own-label sales include Tesco brands (such
as F&F, Finest or Venture brands) and unbranded
products, such as produce. Tesco Bank and Tesco
Mobile are not included.
Performance
Group own-label participation was stable in the
year. Improving the range and quality of our
own-label products is an important part of our plan
to improve the shopping trip for customers in the
UK. We built on the Everyday Value relaunch early
in 2012/13 with range additions in September and
made significant improvements in the core Tesco
own-label range of products throughout the year.
The strategy of improving our Tesco brands will
continue in 2013/14.
7. To build our team so that we create more value
Colleague retention
91%
in the UK
Definition
The proportion of colleagues with over
one year’s service who have worked for
Tesco in the UK throughout the year.
Performance
Our retention rate in the UK remains
strong, up from 90% in 2011/12. This
reflects our focus on creating good jobs
and long-term careers, with excellent
benefits and career development
opportunities. It is also a reflection of
our determined and ongoing efforts
to make what matters to our colleagues
better. For example, through our
UK Plan we have made significant
investments in training and equipment
for our colleagues, supporting them
to do their jobs.
Colleagues being trained for
their next role
5.8%
across the Group
Definition
The proportion of colleagues who are on
development programmes training for their
next role.
Performance
Giving our colleagues the opportunity to get on at
Tesco is very important to us and we are proud of
our commitment to this area. This KPI measures
the number of colleagues being trained for their
next job through our dedicated ‘Options’
programme and we narrowly missed this year’s
increased target of 6% of colleagues. This
measure doesn’t include other development
activities such as apprenticeships, A-level Entry
Programmes and our Advanced Leadership
Programme. Including these opportunities, almost
7% of colleagues across the Group benefited this
year. In addition, we have also heavily invested in
our colleagues in the UK this year through our
‘Building a Better Tesco’ plan. More than 250,000
colleagues in-store have received customer service
training, with additional technical training for
36,000 colleagues.