Tesco 2010 Annual Report Download - page 20

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18 Tesco PLC Annual Report and Financial Statements 2010
At Tesco we’re constantly striving to
make things better, simpler and cheaper.
That’s why we’ve launched three
innovative and popular iPhone apps.
Customers no longer have to worry
about forgetting their Clubcard as
our latest app enables them to scan
their Clubcard on their iPhone.
This app is proving extremely popular
with customers with over 200,000
downloads in the first three weeks
and there will soon be versions for
other smartphones too.
Store Finder app enables customers to
find their nearest stores and then locate
products (complete with prices) within
the store – to the exact aisle.
Our wine app allows customers to take
a photo of a wine they like and uses
image recognition software to identify
iPhone apps – making life easier
for customers
the wine, providing full product
information and allowing customers
to order from their phone.
Coming soon is another tesco.com
app which will enable customers to do
their tesco.com grocery ordering from
their phone.
Core UK
continued
Delivering an
‘Every little helps’
shopping trip
Quality
Quality – particularly in fresh food –
remains important to customers even
in tough times and as we emerge
from recession this will become even
more important. That’s why we have
been investing in our fresh food offer
with a wide-ranging change
programme. Improved technical
standards, additional specialist staff
training, closer relationships with our
suppliers and significant changes to
the way we merchandise some key
products are helping us deliver a
stronger range and better shopping
experience for customers. These and
other initiatives helped Tesco win the
‘Fresh Produce Retailer of the Year’
Award in 2009.
Step Change
Our UK Step Change programme
is in its thirteenth year and continues
to go from strength to strength.
This year we met our £550m savings
target. Step Change is not just about
generating savings – each project must
be ‘better’ for customers, ‘simpler’ for
staff and ‘cheaper’ for Tesco. Our stock
reduction programme is an excellent
example of this:
• it’s better for customers because
it has driven a large improvement
in availability for both food and
non-food;
• it’s simpler for staff because it is
now easier to locate stock to fill
the shelves and stock errors can
be identified more easily; and
• it’s cheaper for Tesco because
stores now hold less stock and
fewer hours are needed to replenish
the shelves. For example, a typical
Tesco Extra now holds 8% less
stock and we are now looking at
releasing backroom space which
can be redeployed for Retailing
Services or Non-food.
This year we aim to complete a
global programme that will deliver
savings of £800m and we’ll invest
most of these savings back into our
offer for customers.
New space
Through the experience and
expertise of our property teams we
have developed over a number of
years a good pipeline of new space
opportunities. As a result we have
the opportunity to unwind some of
the work-in-progress we have built
up and will be stepping up the rate
of expansion in 2010/11. We will
be investing £1.6bn of capital in
the UK economy this year and
will create thousands of jobs for
people, including the long-term
unemployed through our
Regeneration Partnerships.
Sustainable strategy
Our customer strategy is sustainable
for the long term because we can
differentiate Tesco in a unique way
with Clubcard and because our low
prices and improvements to the
customer shopping trip are based on
permanent productivity gains.
Our growth strategy for the UK is also
sustainable as it is based on taking a
balanced approach to the key building
blocks of top-line growth; solid like-
for-like performance and a consistent
contribution from new stores.
Customers earned
£550m in Clubcard
vouchers
£550m in Step
Change savings