Tesco 2012 Annual Report Download - page 35

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Group strategy: To be an outstanding international retailer in stores and online
≥ 95%
in 9 markets
International trading profit Proportion of customers pleased with
their shopping trip
+40%
Growth in international
online sales
08/09 09/10
£709m £749m
10/11∆11/12
£946m
£1,113 m
Definition
The profit generated from our international
businesses in their retail operations.
Performance
We delivered strong profit growth of 18%
against a background of very difficult economic
conditions in several of our large markets.
Definition
The year-on-year sales growth from our
international online businesses.
Performance
From a low base we are starting to see
accelerating growth, with our established
international online operations in South
Korea and the Republic of Ireland doing well.
Definition
The number of markets where at least 95%
of customers asked were very or fairly satisfied
with their overall shopping experience, the top
two ratings.
Performance
The pleasing results reflect the improvements
we have been driving internationally through
different customer initiatives.
Group strategy: To be as strong in everything we sell as we are in food
1st
supermarket
37%
down from 39%
last year
UK general merchandise,
clothing and electricals
range image
Proportion of UK customers
buying general merchandise,
clothing and electricals
Definition
Our relative position among competitors,
as rated by customers.
Performance
With a leading position among our
supermarket peers, we are driving
substantial improvements to our range
in order to increase our competitiveness
among specialist retailers, with plans
for 200,000 products on Tesco Direct
by Christmas.
Definition
The average weekly proportion of
UK Clubcard customers who bought
a general merchandise, clothing or
electricals item.
Performance
With the current economic conditions,
we are seeing subdued demand for
discretionary items.
Source: Marketing Sciences.
27%
International general
merchandise, clothing and
electricals range image
Proportion of general
merchandise, clothing and
electricals sourced as a Group
9
markets – 1st
or 2nd place
Definition
The number of international markets
where we are ranked first or second by
customers for our general merchandise
range. This excludes the US, where we
operate convenience stores.
Performance
Our position reflects the strength of the F&F
brand and of our Extra stores, which are
introducing our customers to different ways
of shopping, with stronger ranging and a
distinctive look and feel for different categories.
Definition
The proportion, by sales, of general
merchandise, clothing and electricals
we buy together, through our Group
Commercial function.
Performance
From this already substantial proportion
of Group sourcing, we expect to increase
the amount that we buy together in the
coming years as we leverage Group skill
and scale.
Source: Country image tracker.
Source: Country customer satisfaction tracker.
Group strategy: To grow retail services in all our markets
Bank profit
09/10 10/11
£250m £264m
11/12
£168m
Trading profit
09/10 10/11
£132m £158m
11/12
£203m
Baseline profit Definition
Trading profit measures the profit generated by the business
in its operations. Baseline profit is measured before key
non-trading provisioning movements, including Payment
Protection Insurance (‘PPI’), and before fair value, and
provides information on business performance.
Performance
Baseline profit rose 29% in the year, reflecting strong business
growth. By contrast, trading profit fell 36%, impacted by the
increase in a provision for claims from historic sales of PPI;
and the unwinding of the fair value provision, an accounting
adjustment made at the time of acquisition in 2008.
∆ Re-presented to exclude Japan.
Tesco PLC Annual Report and Financial Statements 2012 31
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTSOVERVIEW
Key performance indicators Financial review