Tesco - Verdict Company Briefing

OVERVIEW
Introduction
Summary
Limited impact of Big Price Drop;
Head of UK & Ireland exits;
Reaches peak coverage;
Online share slips;
Click & collect rollout continues;
UK investment in refreshing ranges and older stores;
Pharmacy and beauty services can maintain personal care sales;
F&F to widen reach internationally;
Must guard against perception of electricals as low end.
TESCO
Verdict outlook
Recent key events
Head of UK & Ireland exits
Lucy Neville-Rolfe retires
Sets out investment plan for UK market …
… which should help to retain share
New marketing agency may signal end to Every Little Helps
Bows out of Japan
Builds new channels for entertainment sales
Creates online portal for suppliers
Set to open more dark stores
Proposition
Financials
Disappointing UK like-for-likes
Current trading
Operating profits impacted by Big Price Drop
Space
Scales back further expansion
Allocation
Food & grocery
Verdict outlook
Recent key events
Customer penetration
Loyalty second lowest in sector
Price perception falters
Sector performance
Sales mix
Market shares
Space allocation
Health & beauty
Verdict outlook
Recent key events
Clothing & footwear
Verdict outlook
Recent key events
Customer profile
Sector performance
Market shares
Space allocation
Electricals
Verdict outlookOne concise message
Recent key events
Sector performance
Market share
METHODOLOGY
Verdict company briefing
Financial information
Market size calculation
Sales density calculation
Further reading
Ask the analyst
Disclaimer

List of Tables

Table: Tesco company information 2012
Table: Tesco retail proposition 2012
Table: Tesco key operating statistics 2008–13e
Table: Tesco UK trading record 2003–13e
Table: Tesco UK store portfolio 2003–13
Table: Tesco store portfolio by format February 2012
Table: Tesco space allocation 2010 and 2012
Table: Tesco estimated sales mix 2011/12
Table: Tesco food & grocery and non-food space allocation % 2010 & 2012
Table: Tesco food & grocery and non-food space allocation (cont'd) 2010 & 2012
Table: Tesco UK clothing & footwear sales 2007e–12e
Table: Tesco UK clothing & footwear growth rates 2007e–12e
Table: Tesco clothing, accessories, footwear and value clothing market shares 2007–12e
Table: Tesco clothing & footwear space allocation 2011

List of Figures

Figure: Tesco fascia 2012
Figure: Tesco UK sales and growth to February 2008–13e
Figure: Tesco UK operating profit and growth to February 2008–13
Figure: Tesco Everyday Value 2012
Figure: Tesco's most successful venture brand Chokablok 2012
Figure: Tesco Delivery Saver 2012
Figure: Tesco click & collect 2012
Figure: Tesco visitor share for food & grocery 2008–12
Figure: Tesco visitor share for food & grocery by demographic group 2012
Figure: Tesco food & grocery sales incl VAT in calendar years 2008–13e
Figure: Tesco food & grocery sales per sq ft for calendar years ex VAT 2008e–13e
Figure: Tesco share of total market held by food & grocery retailers 2008 to 2013e
Figure: Tesco share of market in food & grocery products 2008–13e
Figure: Tesco food & grocery and non-food space breakdown 2010 & 2012
Figure: Tesco space allocation percentage point change 2012 on 2010
Figure: F&F Made Up 2012
Figure: Tesco visitor share for personal care 2008–12
Figure: Tesco visitor share by demographic group 2012
Figure: Tesco health & beauty sales 2008–13e
Figure: Tesco versus sector in health & beauty UK sales growth 2008–13e
Figure: Tesco health & beauty sales densities 2008–13e
Figure: Tesco health & beauty market share 2008 – 13e
Figure: Tesco's 3D fitting room service on Facebook 2012
Figure: F&F pop up shop May 2012
Figure: Tesco visitor share for clothing 2008–12
Figure: Tesco visitor share for clothing by demographic group 2012
Figure: Tesco UK clothing & footwear sales mix in year to February 2012
Figure: Childrenswear at Tesco 2012
Figure: Tesco UK clothing sales to February 2007e–12e
Figure: Tesco UK footwear sales to February 2007e–12e
Figure: Tesco UK clothing sales per sq ft to February 2007–12e
Figure: Tesco UK footwear sales per sq ft to February 2007–12e
Figure: Tesco accessories, men & women's clothing, and footwear market shares 2007–12e
Figure: Tesco value clothing and childrenswear market shares 2007–12e
Figure: Tesco UK clothing space breakdown 2007–11
Figure: Tesco visitor share for electricals 2008–12
Figure: Tesco visitor share for electricals by demographic group 2012
Figure: Tesco electricals sales incl VAT for calendar years 2007e–12e
Figure: Tesco electricals sales ex VAT per sq ft for calendar years 2007e–12e
Figure: Tesco vs sector in electricals UK sales growth 2007–12e
Figure: Tesco electricals market share 2007 – 12e