Tesco 2012 Annual Report Download - page 21

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Smaller format stores
Smaller format stores complement our established store
networks to meet growing demands for convenience.
These formats are not only great for customers but are
also cost-effective, utilising our existing distribution
networks and requiring less capital.
One platform, many
markets – the best
everywhere
Rolling out the same processes and
systems across the Group delivers
a better shopping trip for lower
cost. Shelf-ready packaging and
best practice replenishment
processes support great availability
for customers in store, while
warehouse processes minimise
stock loss and wastage. We increase
back-office efficiency through our
shared service centre in India with
the same team designing common
features, such as self-service
checkouts, for all our markets.
Reaping the benefits
of centralised
distribution
As we buy more and more products
on a regional or global scale, it
becomes easier and more effective
to organise our distribution across
borders. We have opened new
depots in Poland and China this
year, building them to a Group
blueprint and implementing best
practice processes, equipment
and systems.
Rolling out services
At year end, we had 47 of our Extra format stores internationally.
These stores offer customers a whole range of services, such
as photo shops, opticians and phone shops, for relatively low
investment as they use existing hypermarket space and customer
footfall. Retail financial services are well established in Thailand
and South Korea, where Tesco partners with leading financial
services providers, and in an earlier stage of development in
another sevenof our markets.
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Winning locally,
applying our skills
globally
Tesco PLC Annual Report and Financial Statements 2012 17
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTSOVERVIEW
Chief Executive’s review Strategy in action Business model