Tesco | Verdict Company Briefing

Published: November 2012

Publisher: Verdict

Product ref: 158164

Pages: 60

Format: PDF

Delivery: By product vendor

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Price: $ 400.00

Report description

Tesco's UK performance has slowed through 2011 and into 2012, causing profits to drop and forcing it to revisit its pricing strategy and invest in own brand ranges and its store environment to improve the shopping experience. This Verdict company briefing includes sales data and market shares for Tesco's food & grocery, clothing & footwear and electricals offer.

Plan your expansion strategy by understanding how and where Tesco has increased its store portfolio, and the impact this has had on densities
Benchmark your performance in food & grocery with detailed key performance indicators across sales and space data for Tesco
Compare your allocation of clothing retail space with Tesco by uncovering Verdict's data on the space dedicated to over 30 product categories.
Understand the range of purchasing channels that Tesco offers its customers in order to maximise the potential of your own ecommerce proposition.
Benchmark Tesco's performance in clothing by using Verdict's proprietary sales data for womenswear, menswear, childrenswear and accessories.

Tesco’s overall performance for 2011/12 reflects strong growth in international markets but its UK performance continues to provide cause for concern. The agility which propelled the retailer to overtake Sainsbury’s for the top spot in grocery retailing in the 1990s is no longer there as the business has grown both domestically and internationally.

Investment in the UK market has been pinpointed as a strategic priority. The entry level value range has been relaunched as Everyday Value with redesigned packaging and improved recipes. Stores are being refurbished across the estate and staff levels are being improved to keep availability at optimum levels and provide shoppers with better service.

Despite operating in a competitive market, Tesco has continued to grow clothing sales through multichannel developments, such as click & collect, and the rollout of Extra stores. While non-food categories have struggled at Tesco, with OOT formats falling out of favour with the British shopper, clothing has been one of the more resilient categories

Will Tesco's food & grocery sales recover in 2013, and what impact will this have on market share?
How will Philip Clarke's investment plans drive renewed sales growth in the UK?
What is Tesco's share of the womenswear, menswear, childrenswear and footwear markets? What is Tesco's value clothing market share for 2012?
Which customer segments visit Tesco for clothing and what is its share of each demographic group? Will new range launches in clothing alter this?
What are Tesco's goals around own brand development in clothing and international expansion of stores and online? What is the likely outcome?

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

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

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