Tesco plc Annual Report and Financial Statements 2012
Tesco plc Annual Report and Financial Statements 2012
Tesco plc Annual Report and Financial Statements 2012
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OVERVIEW<br />
Fresh & Easy: progress in the United States<br />
The changes we have<br />
made to stores this<br />
year are building real<br />
momentum in Fresh &<br />
Easy, driving growing<br />
customer numbers <strong>and</strong><br />
sales <strong>and</strong> delivering<br />
reduced losses for the<br />
first time.<br />
Friends loyalty card<br />
thanks our customers<br />
for shopping with<br />
Fresh & Easy<br />
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS<br />
Chief Executive’s review Strategy in action Business model<br />
Fresh & Easy superstars go<br />
the extra mile for customers<br />
<strong>and</strong> help create a culture of<br />
personal service<br />
The Fresh & Easy shopping trip<br />
Our Fresh & Easy business is about<br />
wholesome, fresh, high-quality food in the<br />
heart of the neighbourhood, with great staff<br />
giving the best customer service. We have<br />
made changes this year to bring out these<br />
features <strong>and</strong> give them more prominence in<br />
our stores. With a friendlier store environment<br />
<strong>and</strong> atmosphere, the quality of our fresh <strong>and</strong><br />
prepared produce more apparent <strong>and</strong> the<br />
launch of our Friends card to thank our loyal<br />
customers, we have driven 12% like-for-like<br />
sales growth this year <strong>and</strong> total sales<br />
growth of 27%.<br />
Doors on our fridges <strong>and</strong><br />
freezers, wooden floors <strong>and</strong><br />
brighter walls all make our<br />
stores more inviting for<br />
customers<br />
New prepared ranges<br />
from the Fresh & Easy<br />
Kitchen, offering<br />
wholesome, natural<br />
<strong>and</strong> tasty meals<br />
Scan here to hear more<br />
from our Fresh & Easy<br />
colleagues, or visit www.<br />
tesco<strong>plc</strong>.com/ar<strong>2012</strong>/<br />
fresh<strong>and</strong>easyvideo<br />
The journey to profitability<br />
The results of these changes mean that we<br />
are more confident about the outlook for the<br />
business, although clearly much remains to<br />
be done. We have reduced trading losses by<br />
18% <strong>and</strong> are on track for another significant<br />
reduction in <strong>2012</strong>/13, even if the timing of<br />
break-even will now be later than our earlier<br />
expectation. This is because we will focus on<br />
more stores reaching profitability first, before<br />
pushing on faster with the expansion we<br />
need to create sufficient scale to cover our<br />
overheads. We ended the year with 185 stores<br />
<strong>and</strong> will have approaching 230 stores by the<br />
end of the coming year.<br />
Customers can see <strong>and</strong><br />
feel the quality of our<br />
loose fresh produce<br />
Welcoming<br />
customers with<br />
new fresh ranges:<br />
flowers, fresh bread<br />
<strong>and</strong> coffee to go<br />
<strong>Tesco</strong> PLC <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> <strong>2012</strong> 19
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