Tesco UK – Tesco in the UK
Our operations in the UK are the largest within the Group, with over 3000 stores and over 310,000 colleagues. Over 65% of Group sales and profits come from the UK business, where we are the market leader.
Our multichannel approach allows us to leverage our existing store network and online expertise to make customers’ shopping trips even easier. We were the first retailer to pioneer grocery home shopping in 1997 and have grown to be the world’s largest and most profitable online grocery retailer, with sales of well over £2bn. Our in-store picking model is complemented by a small number of specialised dotcom-only stores which allow us to respond to high customer demand. Our popular Click & Collect service is a key part of our multichannel offering and enables customers to pick up their shopping when and where it suits them. We have over 1,500 Click & Collect collection points for general merchandise and over 150 Grocery Drive-thrus in the UK.
Clubcard, introduced in 1996, is our way of saying thank-you to our customers and is loved by around 16 million active members across the UK. We work closely with our marketing insight business dunnhumby to build our customers a rich and personalised offer and to offer additional incentives to shop with us.
From Finest* and Everyday Value to Chokablok and Technika, our own-label range is an area of substantial and growing strategic importance.
We were the first supermarket to launch a Value range in 1993 and over the years have continued to drive the pace of innovation. Finest* and Everyday Value are now the two largest food brands in the UK – bigger than Coca Cola – each with more than £1bn of sales per year. Following the re-launch of our value range in April 2012, our share of the value market has increased to 45.9% and is growing ahead of the market, according to Kantar data.
We’re not just a grocery store – we’re a multichannel retailer, offering our customers a range of products and services to suit their needs. From Tesco Bank to Tesco Mobile to our new blinkbox video-on-demand service, we’ve got more than milk and eggs. And we’ve have plans to use the space in our larger formats to make our stores even more compelling retail destinations, by offering, for example, the chance to eat and meet family or friends at Harris + Hoole or Giraffe.
Building a Better Tesco – the UK Plan
Our Building a Better Tesco plan is enabling us to drive further improvements in the UK shopping trip and deliver the things that matter to our customers – great service, range, quality and great value. Our key priorities are:
1. Colleagues & Service: helping our people deliver great service by investing in recruitment, training and equipment.
2. Stores & Formats: making our stores better places to shop and work, with the pace of new store development moderating, and the pace of refreshing our existing stores stepping up.
3. Price & Value: delivering great value for money through the right blend of price, promotions, couponing and loyalty.
4. Range & Quality: building the right ranges of quality products, reviewing and refreshing our entire range of Tesco brand products, making our ranging more store and format-specific, and bringing dunnhumby, our marketing insight business, into the heart of Tesco.
5. Brand & Marketing: making sure that we have the right conversations with our customers about Tesco.
6. Clicks & Bricks: making this a potent combination for our customers, with the roll-out of Click & Collect and the transformation of our range and online presence.
The plan is well underway and we are already making great progress, although there is still more to be done. We’re confident that these changes will improve the shopping trip in the UK for our customers and deliver improved performance for shareholders.
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