Vision and Strategy
Our Vision sets out what we want to be:
In any business, clear direction is vital. Our Vision guides the direction and the decisions we take as an organisation. Tesco is a company built around customers and colleagues, high-quality assets around the world and multiple opportunities for growth – and these characteristics are central to our Vision for the business.
We want Tesco to be the most highly valued business by: the customers we serve, the communities in which we operate, our loyal and committed colleagues and of course, our shareholders. For these things to be possible, our Vision for the business has five elements – each of them describes the sort of company Tesco aspires to be.
Wanted and needed around the world
We see it as essential not only to be the shop of choice for customers but also the place people want to work, a business that communities welcome and the retailer in which every shareholder wants to invest.
A growing business, full of opportunities
Whether it's food or general merchandise, books or digital entertainment, banking or eating out, our business is full of opportunities for both customers and colleagues. We want our business to offer something new every time.
Modern, innovative and full of ideas
Tesco's success has always been based on trying to understand customers' needs better than anyone else – and then innovating to make their lives that little bit easier. This attitude, which brought online grocery shopping, extended shopping hours, Finest, Everyday Value, a range of formats from Express to Extra – and all the other things that make us who we are – is as central to our Vision now as it ever has been.
Winners locally whilst applying our skills globally
Retail is local because cultures, tastes, climates, regulations are all different. But the core skills that we have learned in one place can be applied in others. For example, setting up our grocery home shopping operations from scratch in eight international markets across the Group wouldn't have been possible without what we've learned in the UK.
Inspiring, earning trust and loyalty from customers, our colleagues and communities
We want Tesco to be a company that earns trust, not just respect, through everything we do – be it our in-store shopping trip, our Price Promise, or our determination to assure customers on food quality. We want to be a business that customers, colleagues and communities trust and are loyal to.
Our strategic priorities
Continuing to invest in strong UK business
Two years ago we launched the Building a Better Tesco plan and invested £1 billion in six key areas of the business: Service & Staff, Stores & Formats, Range & Quality, Price & Value, Brand & Marketing and Clicks & Bricks.
- Service & Staff: a key priority for the UK business in the coming year is to ensure service is a point of difference for us and to deliver excellent customer service for every customer on every shopping trip. We have delivered training to more than 250,000 colleagues in the UK, helping them to make every moment with customers matter.
- Stores & Formats: Over the last two years, we have refreshed over a third of our UK stores in some way. The focus of our refresh programme will now be on reinventing our largest stores to ensure that they are worth the trip for customers.
- Range & Quality: This year, we completed the work to improve our 8,000 core Tesco products. Our own-label sales account for around half of our total UK sales (excluding petrol).Also, through our world-class testing programme, we have tested over 5,300 products and we are the first major retailer to offer two-year direct contracts for beef and lamb farmers. More than 300 farmers have signed up already.
- Price & Value: We want prices to be stable, we want them to be logical and, of course, we want themto be competitive. Our Price Promise has now been in place for over a year and provides instant reassurance to customers that on fresh foods, on own-label and on branded products they will not lose out at Tesco.
- Brand & Marketing: Clubcard is more important now than it has ever been before. It is at the core of providing a differentiated, personalised offer and it allows our customers to choose how to unlock greater value for themselves. We are using Clubcard to deliver more value for customers and have delivered almost 60Million personalised mailings this year for products that customers buy week in, week out.
- Clicks & Bricks: The pace of the transition to online is rapid but we have a market-leading, profitable grocery home shopping business that already generates £2.5 billion of sales in the UK. It represents a world-class platform from which to build our position of leadership in the multichannel world. We offer one-hour delivery slots in over 98% of the UK and Grocery Click & Collect is available at 260 locations.
Establishing Multichannel Leadership
Customers’ behaviours are changing, their expectations of retailers continue to rise and they want to be able to shop however, whenever and wherever they want. Establishing multichannel leadership is about putting the customer at the centre of our offer and building a seamless experience around them whether they want to shop in store, online, in our restaurants, at the Bank or across a combination of them all.
Pursuing disciplined International growth
Our international markets fall into three areas:
- South Korea, Malaysia and Thailand – markets with significant future potential
- Ireland, Czech Republic, Hungary, Poland and Slovakia – markets where we are focused on holding our position and improving returns
- China, India and Turkey – markets where we know we must refocus on a more profitable approach to growth
Through our international businesses we have the opportunity to create value for customers and shareholders by leveraging the know-how that we have gained from nine decades of retailing in addition to using our scale to better effect across the Group.