Tesco 2011 Annual Report Download - page 30

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To be as strong in
everything we sell
as we are in food
We’ve continued to grow sales and expand
our offer in general merchandise, clothing and
electricals and we have a great opportunity to
do much more.
Introduction and market context
Our general merchandise, clothing and electrical businesses have
continued to grow, despite the challenges of weak demand in some
of our important markets. We have seen some strong key category
and market share performances, which have helped compensate
for the effects of cautious consumer spending in these more
discretionary areas. In order to align with our new structures,
we will going forward define non-food as general merchandise,
clothing and electricals (excluding health & beauty and household).
Overall Group sales in this category rose 8.8% during the year to
£10.3 billion.
In the UK, high petrol prices and increases in VAT have had a
significant impact on discretionary consumer spending. Many high
street retailers have suffered from declining sales and have issued
profit warnings. Tesco has fared better – and maintained market
share – but we haven’t been spared the impact of subdued demand.
Inthe UK, general merchandise, clothing and electricals sales grew
by 0.4% to £5.3 billion. General merchandise sales growth was
affected by a smaller component of extension selling space in this
year’s new space programme, with extensions providing just 10%
of new space.
In our international markets the picture varies considerably by
country. Most of our markets in Europe and Asia saw strong growth
in general merchandise as the economic recovery took hold during
the year, although a number of markets – such as Ireland and
Hungary – remain challenging.
£10.3bn
Group sales
1st
In July, in Prague we opened
our first stand-alone F&F store
£5.3bn
UK sales
Fastest
www.tesco.com/clothing: the
fastest growing online retailer
in volume terms in the clothing,
footwear and accessories market
8.8%
Group sales growth
26
—
TESCO PLC Annual Report and Financial Statements 2011
BUSINESS REVIEW
To be strong in everything we sell