Tesco 2011 Annual Report Download - page 32

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23,000
Number of products available
through Tesco Direct
1st
First UK supermarket to stock the
Apple iPad and Amazon Kindle
TESCO TECH SUPPORT
Tesco Tech Support teams are
now in over 200 of our largest
UK stores providing our
customers with expert advice
on their electrical purchases.
UK
Improving the performance of general merchandise in the UK is one
of our key priorities. Our aim is to offer our customers the same great
quality, price and range in our general merchandise offer as they would
find with their Tesco grocery shop. The focus is on delivering in three
key areas with the aim of improving the general merchandise shopping
trip for our customers:
• investing in making the ranges more aspirational;
• enhancing the shopping experience with specialist advice; and
• developing our multi-channel capability.
Investing in making the ranges more aspirational
We have invested in and expanded our general merchandise ranges
to provide greater appeal to our customers. Our offer is already good
but there is much more we can do – in particular by offering more
aspirational products, not just everyday basics.
In electricals, we were the first UK supermarket to stock the Apple iPad
and the Amazon Kindle – two of the most sought-after technology
products on the market. Keeping in tune with changes in technology
and responding quickly to offer our customers the latest electrical
innovations is central to our strategy and to building our reputation
as a leading retailer in everything we sell.
Enhancing the shopping experience with specialist advice
We are investing in our people so that we are able to support and advise
our customers when they are making big ticket purchases such as TVs
or mobile phones. For example we have 194 Phone Shops offering
customers impartial advice on phone packages and accessories.
In over 200 of our largest stores, we have Tesco Tech Support teams,
made up of staff specifically trained to help customers with technical
queries on electrical items from TVs to cameras and satellite navigation
systems. The additional advice helps customers get the right product
for their individual needs, supporting a reduction in product returns.
Alongside our in-store teams, we have a free electrical helpline for our
customers, manned by fully trained engineers, and a dedicated Tech
Support website.
Developing our multi-channel capability
Our multi-channel approach makes it easy for our customers to shop in
a way that suits them – online, in-store or from catalogues. Customers
can browse in a catalogue, order online and then collect in-store or they
can order in-store and have the goods delivered to their home. This
year, over 40% of Tesco Direct electrical purchases have been made
online and picked up in-store through our Click and Collect service.
We’ve listened to our customers and adapted by expanding our range.
We have increased the number of products available through Tesco
Direct to around 23,000, but we need to do much more in order to
compete with the wider ranges offered by other leading online retailers.
In 2009/10, we launched our clothing site at www.tesco.com/clothing.
The website, which combines our F&F ranges alongside some other
well-known brands, has been extremely popular with customers. We
are currently the fastest growing online retailer in the clothing, footwear
and accessories market.
INTERNATIONAL SOURCING
In order to get the best priced
and highest quality products for
our customers, we source many
food, clothing and general
merchandise goods globally and
buy many products directly from
producers and manufacturers.
Through our Group Sourcing
operations, headquartered in
Hong Kong (above), we can
ensure:
• better products: confidence in
where and how they are made;
• cheaper costs: the cheapest
source of products for all
countries;
• competitive advantage: on
range and quality versus
market competitors; and
• knowledge sharing: best
practice in how we source,
buy, make and move products.
This year, we sourced directly
more than £4 billion worth of
food and general merchandise
products at retail value.
28
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TESCO PLC Annual Report and Financial Statements 2011
BUSINESS REVIEW
Strong in everything we sell