Vision and Strategy
Our seven part strategy aims to broaden the scope of the business to enable it to deliver strong sustainable long-term growth.
In May 2011, Philip Clarke set out a seven-part strategy which complements our vision and reflects changing consumer needs and the increasingly global nature of our business.
Our goal ‘to grow the UK core’ is as relevant today as it was in 1997. The UK is the largest business in the Group and a key driver of sales and profit. This year, we are making a £1 billion commitment to improve the shopping trip, driving a strong pace of improvement in the things that matter for customers which will involve significant revenue and capital investment. These changes will reinvigorate the shopping trip for customers, and consequently deliver improved performance for shareholders.
Another of our original goals was to be a ‘successful international retailer’. In 1997, our international businesses generated 1.8% of the Group’s profits. Today they represent 30% and we’re now either number one or number two in eight of our 12 markets outside the UK. So we’re already ‘successful’ and are working to be an outstanding international retailer in stores and online.
In 1997, we were largely a food retailer so we set ourselves the challenge of becoming ‘as strong in non-food as in food’. As our business has grown and we offer an ever wider variety of products to customers, the term non-food no longer does justice to all the products and services we sell. We now aim to be as strong in everything we sell as we are in food.
In 2011 we updated our original strategic objective of developing retailing services into ‘to grow retail services in all our markets’. Today, Tesco Bank is a key part of the potential we see in retail services, generating £1 billion in revenue this year.
In 2007, we added a fifth element to our strategy to underpin our commitment to communities and the environment. We updated this objective slightly in 2011 by emphasising our responsibilities in these areas. Our goal is to put our responsibilities to the communities we serve at the heart of what we do.
Our brand has evolved from a logo above a few stores in the UK to a wide range of store, product and service brands across the world, from F&F to Finest. Across our markets, our own-label programme appeals to diverse customer needs, providing them with the quality products they are looking for at competitive prices. Our objective is to be a creator of highly valued brands.
Our final goal is to build our team so that we create more value. As our business continues to grow and diversify we need more leaders to run the many substantial businesses and support functions within the Group. Our leaders not only have an important role today, but also have a responsibility to help build a bigger and better team for the future. Tesco’s most important asset will always be its people, who live by our Values to do their very best for customers.
Annual Report 2012
Around the world
Every year we define Community-related projects for each of the markets in which we operate stores, reflecting our Community Promises and local priorities.
Core Purpose and Values
The Tesco Values sit at the heart of our business and help us deliver our Core Purpose
