Tesco 2009 Annual Report Download - page 17

,000
Real
Basket
Results.
T e s c o
S a insb ur y’s
221,000
ba skets
cheaper
Ba sed on a samp le of 10% o f all Cl ubcar d t rans actio ns in stor e 02/04 /09 com pare d with pr ices at S a ins bury’ s. Ex act figu res are T e s co c heape r 168,317 bas kets ,
Sa in sbury ’s wou ld have be en chea per 22,0 48 baske ts . Cl osest m atch appl ied. In clude s p romo tions. E xclud es multi buys, no n match es, Expr ess & sele cted Me tro. Sa insb ury’s
price s c hecked on line 02/ 04/09 . C lubc ard poin ts awar ded qua rterly . Min imum Clu bcard sp end £1. T o verify cont act T e s co Price EN8 9SL or see ww w. tes co.c o m
Ne wprice c uts andselected Discou nt Brand pr oducts avail able in +1500stores .
T e s c osa v es
yo umon ey
wit h Clu bca rd
At T e sco, we compare prices on the things you actually put in your
shopping basket – like bread, milk, meat and fruit and veg. And on
Thursday 2n d April, we found that over 1 , 680,000 of your baskets
were cheaper at T e sco than they would have been at Sainbury’ s .
1 , 683 ,000
baske t s
cheaper
15
REPORT OF THE DIRECTORS
Tesco PLC Annual Report and Financial Statements 2009
In the current year we expect to trade the business harder to give what
help we can to families whose budgets have become stretched and
who are worried about their jobs. Our competitive offer is strong and
we are investing more in cutting prices, sharpening our promotions
and putting even more affordable products on our shelves, particularly
through the launch of more ‘Discount Brands’. Whilst price and value
matter more to many customers at times like these, as always, we
are improving all aspects of the shopping trip, including service and
availability. As part of this, we are planning to relaunch and invest
substantially more in Clubcard – our unique way of saying ‘thank you’
to our customers – in the coming weeks.
New space
We opened a total of 2.0m square feet of new sales area in 2008/9, of
which 362,000 square feet was in store extensions, principally for Extra.
We opened another 11 Extra hypermarkets – six from extensions to
existing stores and five new stores, bringing the total to 177, with a
further 15 planned this year. Extra now represents 40% of our total
sales area. We also opened 21 new superstores and 125 new Express
stores, bringing the overall total number of Tesco stores to 2,282.
In the current year, we aim to open a similar amount of new space
across our formats – equivalent to an additional 6.4% of sales area.
25%
of our customer
transactions are through
self-service checkouts
To reflect our customers’ need to spend less, we have
invested millions of pounds in cutting prices and
introduced more promotions, as well as launching new
ranges of affordable products in both our Value range
and our new ‘Discount Brands’.
Although there are many different conflicting claims on
price in the marketplace, we have focused on comparing
the prices of real customers’ baskets from Clubcard on
the products people buy most often. These baskets clearly
show that Tesco is cheaper on the real baskets people
actually buy, and is the most comprehensive survey in
the marketplace today.
In order to continue to reduce our prices, our efficiency
programme Step-Change generated £540m of savings in
the last year which we have been reinvesting back in our
offer and will be doing more of this in the year ahead.
Some of your competitors
say that they are cheaper
than Tesco. Why aren’t you
doing more to cut prices?
To find out more go to
www.tesco.com/annualreport09