Tesco 2011 Annual Report Download - page 37

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Tesco Telecoms
Our Telecoms business grew well during the year, maintaining strong
market share, driven primarily by the growth of Tesco Mobile. In 2010
Tesco Mobile was one of the fastest growing UK mobile networks,
growing its customer base by 24% to over 2.5 million.
Customers have responded positively to an increase in the number
of mobile handsets we are offering, including the latest smartphones
from Android to HTCmodels.
In 2010, we entered the international calling card market. The market
has recently been investigated by OFCOM and Tesco was one of the
top performing service providers praised for its value, clarity and
customer service. Our international calling card has generated sales
of over £2 million since launching and around 16,000 cards are sold
in-store every week.
Our Tesco Mobile joint ventures with O2 in Ireland and Slovakia are
performing well. Both businesses are growing strongly and moved
into profit for the first time this year.
dunnhumby
dunnhumby has had a very strong year, increasing sales and profits by
over 30% with excellent growth in the UK supplier business and from
its overseas joint ventures with retailers.
Following the acquisition of the final 10% of the business in the
first half of the year, dunnhumby is now a wholly owned subsidiary
of Tesco.
In South Korea, we have
launched a general merchandise
website to complement the
current grocery site.
HOMEPLUS
Homeplus is the number one
grocery home shopping provider
in South Korea, delivering just
under 1.5 million orders last year.
TESCO DIRECT
In November 2010, Tesco Direct
launched a new mobile website
allowing customers to easily
browse for and buy general
merchandise items on their
smartphone.
DUNNHUMBY
dunnhumby was founded in
1989 by Edwina Dunn and Clive
Humby with the intention of
embedding customer insight into
the way organisations work. By
analysing data from over 340
million people in 25 countries,
dunnhumby helps companies to
put their customers at the centre
of every business decision.
dunnhumby uses the insight
generated by data they gather
to allow companies to improve
customers’ experiences of
shopping in their stores, branding
and marketing. They work with
companies to help them tailor
their offer to the needs and
wants of their customers.
dunnhumby’s work with
some of the world’s biggest
retailers and brands has
demonstrated that companies
which deliver value to customers
through personalisation earn
customers’ loyalty.
This strategic approach of
putting the customer first in
business improves their clients’
like-for-like sales and profit
margins – or, put simply, creates
measurable value.
Employing more than 1,500
people in 30 offices in Europe,
Asia and the Americas,
dunnhumby serves a prestigious
list of companies including
Kellogg’s, The Kroger Co., Müller,
Procter & Gamble, Coca-Cola
and Mars. dunnhumby’s work
has also extended beyond the
grocery sector to include
partnerships with Macy’s, Shell
and the Panera Bread Company.
dunnhumby has worked with
Tesco since the launch of
Clubcard in the UK in 1995 and
now works across the 12 markets
where we have Clubcard.
TESCO PLC Annual Report and Financial Statements 2011
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33
Overview Business review Governance Financial statements