Tesco 2012 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2012 Tesco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 158

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158

Consistent property
blueprints
As we continue to grow our
international businesses there is
a significant opportunity to make
savings from applying standardised
property blueprints. With the
same specialist team designing
the stores, we can build great stores
for customers more quickly, more
cheaply and with a reduced carbon
footprint. We also ensure the new
space is best used by reducing the
space given to offices and chillers
in the back, providing more room
on the shop floor.
Retailing is a local business. Customers
love local and regional products; we pride
ourselves on having local people running our
operations; and we use local knowledge to
source and to allocate space to the most
popular products. However, lots of what we
do – especially behind the scenes – is best
done in the same way across our markets.
We are increasingly realising our vision to
win locally by applying our skills globally.
‘Group skill and scale’ describes this step in
our evolution to becoming a global business.
By Group skill, we mean applying expertise
from individual countries to all of our markets:
Clubcard is a great example. Having invested
millions of pounds to develop the UK scheme
in the late 1990s, we have been able to
introduce a loyalty scheme to each of our
markets for a fraction of the cost.
By Group scale, we mean using the size of
the Tesco business to benefit our customers
by lowering prices, improving quality, and
sourcing new and different products from
the best suppliers around the world. Globally
sourcing food, general merchandise, and the
goods that we use in store is one way that
we are doing this. We buy some products
from the same source for all our markets,
such as bananas, and we buy others for a
whole region, such as F&F clothing for
Central Europe. Buying on a larger scale
means that we can achieve a better cost
price and create headroom to invest in
improving the shopping trip for customers.
Since the mid-1990s, we have built an international
business of more than 3,200 stores, which delivered
more than £1 billion trading profit for the first time
thisyear. As we strive to become an outstanding
international retailer, we are drawing on Tesco’s skill
and scale to move into the next phase of growth.
International: Moving into
the next phase of growth
Since the mid-1990s, we have built an international business with more stores
than we have in the UK, which has delivered more than £1 billion trading profit
for the first time – larger than any of our UK competitors. With strong market
positions, we are well positioned to move into the next phase of growth.
* 11/12 trading profit excludes Japan, which has been treated as discontinued following
our decision to sell the business. 10/11 has been re-presented to be consistent. The data
up to and including 05/06 is statutory operating profit; from 06/07 it is trading profit.
Our evolution to becoming a global business
International trading profit of over £1 billion*
£bn
96/97 01/02 06/07 11/12
1.0
0.5
Scan here to find out
more about our
international businesses,
or visit www.tescoplc.com/
ar2012/asiaandeurope
16 Tesco PLC Annual Report and Financial Statements 2012