Tesco 2012 Annual Report Download - page 19

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International growth
We already have profitable online grocery
businesses in South Korea and the Republic
of Ireland, launched dotcom in the Czech
Republic this year and are planning to
begin soon in Warsaw. In the next few years,
we are planning to launch online grocery
shopping in at least one major city in each
of our markets, using our operating model
to roll this out quickly and cost-effectively.
In Asia, we’re innovating to access the biggest
opportunities – for example, in addition to
our online grocery service, our virtual stores
in South Korea enable busy customers to shop
on their way to work. The Homeplus app has
been downloaded over a million times.
Social media
As our customers spend an increasing amount of time
online we are able to use social media to build trust
and understanding of our business. This in turn helps
to drive loyalty.
We have built our business on listening to our customers
and acting on their feedback. Social media allows us to
have conversations with them on any issue at any time
– in the UK, we now have more than 680,000 ‘likes’ on
our Facebook page.
In 2011 we acquired BzzAgent – a unique business
combining word-of-mouth marketing with a commercial
application of social media, helping to drive consumer
advocacy and broaden our capability and innovation in
product marketing.
Social media also helps us to be more effective and
innovative in existing tasks such as recruitment and staff
communication. For example, our staff use Yammer –
aprivate social network for businesses – to share best
practice and celebrate success, often by posting photos,
and we use it operationally for sharing messages and
asking for feedback.
Click & Collect
Click & Collect is a key component of our multi-channel
offering. Our store and distribution networks mean
we can give customers the opportunity to pick up
products whenever it suits them from over 770 stores,
close to where they live or work. 70% of online general
merchandise orders are handled in this way.
Click & Collect is becoming increasingly relevant for
all product groups. We currently have 45 stores that
offer grocery Click & Collect and we expect this number
to increase quickly. Our customers appreciate this
innovative, quick and convenient service which fits
well into their busy schedules.
Tesco PLC Annual Report and Financial Statements 2012 15
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTSOVERVIEW
Chief Executive’s review Strategy in action Business model