Tesco 2013 Annual Report Download - page 21

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17
Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Group strategy
1. To grow the UK core
UK like-for-like (inc. VAT, exc. petrol) UK trading profit Definition
The profit generated from the UK business
in its retail operations.
Performance
UK profits declined, reflecting the £1 billion
investment into the UK business to improve
the shopping trip for customers.
09/10 10/11 11/12 12/13
2.6% 1.0% 0.0% (0.3)%
Definition
The growth in sales from stores that have
been open for at least a year.
Performance
We aim to continue improving like-for-like
sales in 2013/14 through our ‘Building
a Better Tesco’ plan. We expect the plan
to continue delivering stronger like-for-like
sales in 2013/14.
09/10 10/11
£2,413m £2,504m
11/12 12/13
£2,478m £2,272m
Customer rating of overall
shopping experience as
excellent or good
79%
3% improvement
on last year
Source: Marketing Sciences.
Definition
Percentage of customer ratings,
measured in exit interviews.
Performance
79% of customers find their shopping
experience excellent or good, and 98%
find it reasonable, good or excellent.
Through our UK Plan we have been
improving customers’ shopping
experiences and this focus will continue
in 2013/14.
Growth in UK online sales
+10%
Definition
The year-on-year sales growth from
total tesco.com and online telecoms.
Performance
Our online businesses are performing
well and we are pleased with the UK
sales growth. Our largest online
business, grocery home shopping, saw
increased sales growth of 12.8%, driven
in part by the success of our Grocery
Click & Collect roll-out and the launch of
our Delivery Saver subscription scheme.
2. To be an outstanding international retailer in stores and online
International trading profit
09/10 10/11
£749m
£946m∆
11/12 12/13
£1,266m†
£990m
Definition
The profit generated from our international
businesses in their retail operations.
Performance
International trading profits declined, due to the
c.£(100) million impact of regulatory restrictions
in South Korea and challenging economic
conditions, particularly in Europe.
∆ Re-presented to exclude Japan.
† The 2011/12 figure including the US was £1,113 million.
Proportion of customers pleased with their
shopping trip
≥ 95%
in 6 markets
Growth in international
online sales
+46.5%
Definition
The year-on-year sales growth from our
international online businesses.
Performance
We are pleased with the growth in online sales
across the Group. We now have online grocery
businesses in eight of our international markets,
so would expect to see sizeable growth. We
generated over £3 billion sales online for the
Group as a whole for the first time.
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
In six of our markets at least 95% of customers
are very or fairly satisfied with their overall
shopping experience, compared to eight*
markets last year. We have seen a dip in some
of our Central European markets and we have
customer plans in place to improve the
shopping trip in all markets.
* Re-presented to exclude the US.
Source: Country customer satisfaction tracker and
Country image tracker.