Tesco 2015 Annual Report Download - page 7
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Our starting point is the market where
we serve the most customers: the UK.
The UK represents more than two-thirds
of our sales. So if we regain our
competitiveness and do a better job
for customers in this market, it will
have a dramatic impact on the
performance of the Group.
We have been focusing on four things
for our customers:
• Service. Our business is based
on great service, but we haven’t
got this right in recent years. To help
fix this, we have invested in 4,652
new colleagues in customer-facing
roles. We have also asked everyone
who works in our offices to spend
time working in store.
• Range. Over the last few years,
we have significantly increased the
number of products in our ranges.
This has put extra pressure on our
store colleagues – and it’s also left
many customers confused. So over
the course of this year and into the
next we have started to review our
ranges across all categories to make
them simpler. As part of this we’ve
already met with over 100 suppliers.
• Availability. Partly because of an
increasing range, we did not leave
enough space for the most popular
products and important items have not
been available at peak times. We have
now given more space to the top 1,000
lines in each store, resulting in marked
improvements in product availability at
peak times during the day.
• Price. Along with great service and
availability, we want to make those
products which are most important
to our customers as affordable as we
can. As an example of this, we focused
on the ‘Festive Five’, the five vegetables
people most want with their Christmas
lunches. Since January, we have
dropped prices on hundreds of
branded products and essential
own-brand products. We are also
committed to simpler, lower and
more stable prices wherever we can.
As a result of these changes, our
customers are responding. Although
we have work still to do, since October
we have improved our competitiveness
and every day more people are choosing
to shop at Tesco.
In addition, we have identified cost
savings across the Group of £400m.
We have also taken a difficult decision
to close 43 unprofitable stores in the
UK, and not to proceed with plans for
49 new stores. These decisions have
been difficult but have been made
to put the needs of the business
and customers first.
regain
5Tesco PLC Annual Report and Financial Statements 2015
Other informationGovernance Financial statementsStrategic report