Food Retailing UK 2011

8/10/2019 Food Retailing UK 2011

1/18

Food Retailing - UK - November 2011

TescoMarket position: Market leader in UK, Hungary; number 2 in Poland, IrelandLatest ear end: February 2011

!ales: 61.6 bn !".#$%"perating pro#it: #." bn !10.2$%

$ebsite: &&&.te'(o.(om%o&ntries o#

operation:

UK, )*e(+ e-ubli(, Hungary, Poland, Ireland, India, a-an,

/loak e-ubli(, urkey, /out+ Korea, +ailand, Malay'ia,)+ina, United /tate'.

Tescoi' t+e UK'

leading 3ood retailerand +a'

'u((e''3ullye4-anded around

5a'tern 5uro-e and

t+e Far 5a't. It i't+e &orld' t+ird

large't retailer.

Figure 1"7 e'(o Pl(7 /ale' a' '+are o3 3ood retailer' 'ale' in

5uro-e, 2006810

/our(e7 )om-any 9((ount' and 9nnual e-ort:Mintel

!trategic eval&ation

+e in(oming (+ie3 e4e(utie, P+ili- )lark, 3a(e' -roblem' in t+e UK, and &+ile it i'-o''ible to oer'tate t+em trading i' toug+. e'(o +a' -ut on minimal market '+are

oer t+e la't (ou-le o3 year' t+oug+ e4a(t analy'i' i' di33i(ult be(au'e o3 t+e -etrolelement o3 'ale', and t+e (om-any it'el3 (laim' t+at (annibali'ation i' not a maor

-roblem% and 'ale' gro&t+ +a' 'li--ed.

'e care#&l not to overstate t(e problems

It i' ea'y to 'ay t+at /ain'bury' re'ult' +ae been better t+an e'(o'.


2/18

@ 9 glan(e at /ain'bury' (u'tomer -ro3ile 'ee t+e /ain'bury' -ro3ile% and it i'immediately obiou' t+at /ain'bury' +a' a mu(+ 'tronger bia' to t+e 9:lobal H (+ain1//+ 5ntry into Poland t+roug+ a(ui'ition o3 /aia (+ain

1// D-eration' in )*e(+ and /loak e-ubli(' 'et u- t+roug+-ur(+a'e o3 Kmart (+ain in t+o'e (ountrie'

1// Furt+er a(ui'ition' in Poland5ntry into e-ubli( o3 Ireland t+roug+ a(ui'ition' 3rom

9''o(iated erman grou- No+le2004 9(ui'ition' o3 ) &o retail net&ork in a-an and Ki-a (+ain in

urkey200 Furt+er a(ui'ition' in a-an, entry into )+ina t+roug+

-artner'+i- &it+ 2E8'tore Hymall +y-ermarket (+ain

200+ 9(ui'ition o3 9rum mart (+ain in /out+ Korea200


5/18

tru't in t+e main'tream bank' i' at a lo& ebb. In -ra(ti(e (u'tomer inertia &ill make

-rogre'' eating into t+e (urrent a((ount market ery 'lo&.

Tesco telecoms A e'(o +a' 1G P+one '+o-' in it' UK 'tore' and a roll8out i'about to 'tart in 5uro-e.

5sia and t(e U! 8 e'(o +a' +ad great 'u((e'' in t+e Far 5a't and i' a maor -layer

in +ailand, /out+ Korea and )+ina. 9 moe into (onenien(e retailing in a-an +a'not &orked and e'(o i' -ulling out. Fre'+ 5a'y in t+e U/ +a' been +it +ard by t+e

re(e''ion, &+i(+ +a--ened to be &or't in t+e area' in &+i(+ e'(o (+o'e to deelo-.+e (om-any no& +o-e' to be trading at break8een by t+e end o3 2012:1#.

%ompan per#ormance

F67UR8 1/7 e'(o Pl(7 >rou- 3inan(ial -er3orman(e, 2006:0L82010:11

Latest ear end:Febr&ar 2011

20090 200903 200390/ 200/910 2010911

!ales *m;

e'(o Pl( 2,61 L,2G" E,#2L E6,G10 61,6E0D3 &+i(+7

Nobbie' >arden)entre' -l(

6G " G2 10 n:a

e'(o 9'ia% ,1L E,EE2 L,06" ",6E 10,2L"D3 &+i(+7

e'(o /out+ Korea% 2,EEL 2,L#0 #,1#G ,1L6 ,G"e'(o India% n:a n:a n:a L #G

e'(o +ailand% 1,#26 1,E" 2,1#L 2,#G 2,"e'(o Malay'ia% 2L #L" E" 6#6 LG

e'(o )+ina% EE2 E" "00 "" 1,11e'(o a-an% 2"L 2L6 0" G L6

e'(o 5uro-e% #",22 1,L6 L,0E# L,"2" G,GE"D3 &+i(+7

e'(o )*e(+ e-% "0L GG# 1,26E 1,2"L 1,#EE

e'(o Hungary% 1,1"0 1,0L 1,LL 1,6G" 1,6Ge'(o Poland% 1,1#E 1,"L 1,G6 1,G# 2,1E6

e'(o Ireland% 1,6"# 1,"GE 2,#"0 2,2G" 2,##2e'(o /loak e-% G" 6E# "G "G GG6

e'(o UK% #2,66E #,"L #",1G1 #",EE" 0,L66e'(o urkey% 2E6 #L EL1 EGE L00

Fre'+ 5a'y n:a n:a 206 #G GE

!ales < Like-#or-like

=9'ia na na na na 2.#

5uro-e e4(l. UK% na na na 80.G 2.6 UK E.6 #.G .# 2.E 2.

UK e4(l. 3uel% na #.E #.0 2.6 1.0 U/ na na na na G.

+i' re-ort i' 'u--lied in a((ordan(e &it+ Mintel=' term' and (ondition'. /u--lied to


6/18

!ales >m;

e'(o Pl( 62,6 6G,0EE 6",220 6#,"2# L1,L6"D3 &+i(+7


101 122 11E 116 n:a

e'(o 9'ia% 6,L0 ",106 ","LE G,G# 11,G6ED3 &+i(+7

e'(o /out+ Korea% #,L6 #,G"6 #,G2 ,6"# E,"02e'(o India% n:a n:a n:a " E

e'(o +ailand% 1,G2 2,#1# 2,6"# 2,6# #,#11e'(o Malay'ia% #62 EE2 L## L1# G2

e'(o )+ina% "0G "E# 1,00E GE1 1,#2"e'(o a-an% 20 0# E12 E0 EE

e'(o 5uro-e% EE,GG 60,GG EG,0"6 E#,6#L E",1EL

D3 &+i(+7e'(o )*e(+ e-% 1,1"2 1,E0 1,E"" 1,# 1,ELL

e'(o Hungary% 1,L2G 2,0E 2,22" 1,G0 1,G20e'(o Poland% 1,66# 2,1L1 2,66 2,1LG 2,E10

e'(o Ireland% 2,6E 2,L6L 2,G"G 2,ELL 2,L1Ee'(o /loak e-% L#0 GE# 1,12# 1,00# 1,1EG

e'(o UK% L,"E0 E0,G16 L,GE" #,21 L,E6

e'(o urkey% #LE 6#" L1L 66L "1E

Fre'+ 5a'y n:a n:a 2EG #G1 EL6

"perating pro#it

*m;e'(o Pl( 2,6" 2,LG1 #,206 #,EL #,"11

Nobbie' >arden

)entre' -l(

" G " 10 n:a

e'(o 9'ia% 21 2G #EE 0 EL0e'(o 5uro-e% 2,2#2 2,GL 2,"LL 2,""L #,0#1

e'(o UK% 2,0"# 2,0GL 2,#"1 2,1# 2,E0Fre'+ 5a'y n:a n:a 812 816E 81"6

"perating margin

=;e'(o Pl( 6.2 E.G E.G 6.1 6.2


11.E 10.L "." G.E n:a

e'(o 9'ia% E.E E.# E.0 E.2 E.Ee'(o 5uro-e% E." 6.0 6.1 6.0 6.1

e'(o UK% 6. 6.0 6.2 6.# 6.1Fre'+ 5a'y n:a n:a 86".G 8L.# 8#L.E

?re-ta@ pro#it *m;

e'(o Pl( 2,6E# 2,"0# 2,GE #,1L6 #,E#E

Figure' may not 'um due to rounding/DU)57 )om-any 9((ount' and 9nnual e-ort:Mintel



7/18

6nterim res&lts

+e interim re'ult' &ere 'een a' di'a--ointing be(au'e UK 'ale', e4 O9 and e4-etrol &ere 0.6$ do&n, like 3or like. In t+e re't o3 5uro-e 'ale' ro'e L.E$, +eld

ba(k by Hungary and Ireland, bot+ o3 &+i(+ are 'u33ering 3rom au'terity mea'ure'.UK -ro3it' ro'e .E$ and in t+e re't o3 5uro-e 11."$.

F67UR8 1+07 e'(o7 ?ike83or8like 'ale' gro&t+, 26 &eek' to 9ug 2011

!ales gro.t( inc A5TB e@ petrol; =

UK 0.E

UK e4 O9, e4 -etrol% 80.6)*e(+ e-ubli( 1."

Hungary 2.6Poland 80.

/loakia L."urkey .

Ireland 8#.

/DU)57 )om-any re-ort and a((ount':Mintel

F67UR8 1+17 e'(o Pl(7 Dutlet data, 200L:11

5s at Febr&ar 200 2003 200/ 2010 2011

"&tlet n&mbers

e'(o Pl( #,26# #,L2G ,#0" ,"11 E,#"0

D3 &+i(+7Nobbie' >arden)entre' -l(

20 2# 22 2E 2"

e'(o 9'ia% 6#6 "1 1,0L 1,2#0 1,1GD3 &+i(+7

e'(o /out+ Korea% G1 1#L 22 #0E #Ee'(o +ailand% #L0 L6 EL1 66# L"2

e'(o Malay'ia% 1G 20 2G #2 #"e'(o )+ina% L E6 L0 "" 10E

e'(o a-an% 10G 12E 1#E 12 10

e'(o 5uro-e% 2,62L 2,"62 #,16 #,61 #,LGLD3 &+i(+7

e'(o )*e(+ e-% " G6 11# 1#6 1E"e'(o Hungary% 101 12# 1G 1L6 20E

e'(o Poland% 2"0 #01 #1G ##6 #L1e'(o Ireland% GE 100 116 11G 1#0

e'(o /loak e-% " 60 L0 "1 GLe'(o UK% 1,G"" 2,11E 2,2"2 2,E0L 2,L1E

Dne /to- E2L E1L E12 E1# E21

e'(o urkey% #0 66 G6 10E 121



8/18

Fre'+ 5a'y n:a E# 11E 1E 16

!ales area C000 mD;

e'(o Pl( 6,##L L,0EG ",12" ","#G G,6#0D3 &+i(+7


n:a n:a n:a 106 121

e'(o 9'ia% 1,L6" 2,0G# 2,6"0 2,GE #,2E1D3 &+i(+7

e'(o /out+ Korea% L E"0 G#E 1,016 1,0"Ee'(o +ailand% 6G" "2G G2E GL6 1,0E

e'(o Malay'ia% 1LE 166 2#E 261 #0Ge'(o )+ina% #G# "2 E 6E" LE6

e'(o a-an% 2G #E 1 L

e'(o 5uro-e% ,E6G ,G1L E,#1 E,6E 6,220D3 &+i(+7

e'(o )*e(+ e-% #"2 0" ## EE "Le'(o Hungary% " E0# E6G 61E 66"

e'(o Poland% 60L 61G 6L2 L02 LELe'(o Ireland% 210 22" 2L6 2"2 #01

e'(o /loak e-% 2#E 2EE 2LE 2G# #1

e'(o UK% 2,E"2 2,L6 2,G0" #,066 #,11Dne /to- LE L# L# L# L

e'(o urkey% 10# 1E" 20" 2#2 2"0

Fre'+ 5a'y n:a G 10L 1#E 1E"

!ales per o&tlet

*E000;

e'(o Pl( 1,2L6 1#,E2G 1#,E21 12,"# 12,100Nobbie' >arden)entre' -l(

#,620 #,GL" ,1"0 ,E11 n:a

e'(o 9'ia% ",1# L,6E" L,600 L,#" L,L6#e'(o /out+ Korea% ##,6E 2#,GL 16,60" 1E,2GL 1E,1G

e'(o +ailand% ,E10 #,LE ,0"6 #,"0L #,G#Ge'(o Malay'ia% 1E,#" 1G,"GE 2,### 21,200 22,6"6

e'(o )+ina% 12,"#L 11,E1 12,6G" 10,L# 11,""Ee'(o a-an% 2,60G 2,#EG #,1#" #,2E #,#L6

e'(o 5uro-e% 1E,60 1E,21 1E,66# 1,L#G 1#,GG0e'(o )*e(+ e-% 1#,6L" 11,0## 12,16# 10,#LG G,21"

e'(o Hungary% 12,EE# 12,E6# 1#,0 10,"1 ",6LGe'(o Poland% E,G11 E,12" 6,##E E,G2 6,10"

e'(o Ireland% 1",0GL 1G,E#6 22,0#L 1G,61 1","06e'(o /loak e-% 11,"EL 12,0G# 1#,LE 11,G20 11,1G1

e'(o UK% 16,"20 1L,00# 1L,#LE 16,106 1E,61#e'(o urkey% 1#,L G,10 L,0G E,GE0 6,1GE

Fre'+ 5a'y n:a n:a 2,E2 2,6"E n:a

!ales per mD *;

e'(o Pl( L,2#1 L,061 L,1E 6,LE0 6,L1



9/18

Nobbie' >arden

)entre' -l(

n:a n:a n:a G"2 n:a

e'(o 9'ia% 2,L0E 2,"L6 2,G62 #,00E #,#1#

e'(o /out+ Korea% E,G66 E,1"0 ,1# ,2"2 ,LEe'(o +ailand% 1,GG" 2,0L 2,#6 2,L2 2,"02

e'(o Malay'ia% 1,"G2 2,220 2,G1# 2,E6E 2,L"Le'(o )+ina% 1,E#L 1,##6 1,EEG 1,11 1,61

e'(o a-an% 10,060 ",EL0 10,L06 10,E#6 10,#2e'(o 5uro-e% ",G6 ","01 G,1L ","2E ",E26

e'(o )*e(+ e-% 2,600 2,E1E #,00L 2,"GG 2,"LGe'(o Hungary% 2,L"G 2,GEG #,#12 2,"6G 2,EL1

e'(o Poland% 2,1EG 2,26 #,0E 2,"2G 2,GEEe'(o Ireland% ",22G ",6EL G,E0 ",20 ",001

e'(o /loak e-% 2,221 2,66L #,#LL #,1E2 #,2"1e'(o UK% 1#,0G6 1#,0G0 1#,E10 12,6L1 12,#L

e'(o urkey% #,1"# #,#E0 #,12E 2,L06 2,L#2Fre'+ 5a'y n:a n:a 2,6#" 2,""2 n:a

/DU)57 )om-any 9((ount' and 9nnual e-ort:Mintel

?er#ormance b co&ntr

UK

F67UR8 1+27 UK7 /ale' a' '+are o3 all 3ood retailer' 'ale', 2006810

/our(e7 )om-any a((ount':D33i(e 3or ational

/tati'ti(':Mintel

Market '+are 3igure' are di'torted by-etrol 'ale', but '+are i' 3altering

and 'ale' are being 'u--orted byri'ing in3lation.

D-erating margin' ea'ed 'lig+tly in2010:11.

+e do&n&ard trend in 'ale' den'ityi' +ard to read be(au'e o3 gro&t+ o3

54-re''.

%ec( Rep&blic

e'(o rank' t+ in t+e market, but Floren(e Fred i' t+e (lot+ing market leader and

t+e 3ir't 'tand8alone FF 'tore' laun(+ed in 2010.



10/18

F67UR8 1+47 )*e(+ e-ubli(7 /ale' a' '+are o3 all 3ood retailer' 'ale', 2006810

/our(e7 )om-any a((ount':)*e(+ /tati'ti(al D33i(e:Mintel

e(oery in market '+are

&it+ mode't l3l gro&t+2$% in 2010:11.

)lub(ard laun(+ed in 2010

and 10$ o3 t+e -o-ulation

i' no& 'igned u-.

Dnline to be laun(+ed in

2011:12.

G&ngar

e'(o i' market leader in Hungary. 9l'o market leader in (lot+ing.

F67UR8 1+7 Hungary7 /ale' a' '+are o3 all 3ood retailer' 'ale', 2006810

/our(e7 )om-any a((ount':Hungarian /tati'ti(al

D33i(e:Mintel

Nemand &a' &eak and like8

3or8like 'ale' 3ell againdo&n 1.2$% in 2010:11.

/ale' den'itie' al'o 3ell.

?oland

e'(o i' number t&o in t+e market, be+ind t+e di'(ounter


11/18

F67UR8 1++7 Poland7 /ale' a' $ all 3ood retailer' 'ale', 2006810

/teady -rogre'' in

2010:11 &it+ mode't like83or8like gro&t+ !2$% in a

de-re''ed market.

Dnline '+o--ing i' due to

be laun(+ed in 2011:12.

/DU)57 )om-any a((ount':Poli'+ /tati'ti(al D33i(e:Mintel

6reland

umber t&o in t+e market, be+ind t+e oluntary grou-' o3 Mu'grae.

F67UR8 1+7 Ireland7 /ale' a' $ all 3ood retailer' 'ale', 2006810

/trong re(oery in like83or8like' !#.G$% in 2010:11

a3ter 'ale' &ere +it by (ro''border trading in 200G:10.

rou- ?td. 11


12/18

F67UR8 1+7 e'(o7 UK 'tore 3ormat', 2010:11

Tpical sieTpe o#

o&tlet

"&tlet

n&mbers

"##er

%ore #ormats:e'(o 54tra U- to

10,000m2

Hy-ermarket 212 Full 3ood o33er and &ide non8

3ood.e'(o

/u-er'tore

2,L008

#,L00m2

/u-er'tore L0 Full 3ood o33er, non83ood'

de-ending on aailable '-a(e.e'(o Metro 1,000m2 )ity (entre 1"6 >eneral gro(ery, &it+

em-+a'i' on (onenien(e andlun(+8time trade.

e'(o 54-re'' 2LGm2 )onenien(e 1,2"E o-8u-, (onenien(e. Meet'legal 'i*e limit to allo& all day

/unday o-ening.

"t(er#ormats:

Home-lu' #,000m2 on83ood'u-er'tore

1# 54-erimental +ome 3ormat. oo-ening' in 2010:11

Dne /to- 2LGm2 )onenien(e E21 ?ega(y o3 t+e / 'tore'

a(ui'ition.

/DU)57 e'(o:Mintel

+ere i' a tenden(y to (on(entrate on +y-ermarket', be(au'e t+ey are indiidually+uge bu'ine''e' and 'till t+e mo't -o-ular &it+ (on'umer'. rou- ?td. 12


13/18

urkey 6 LE Hy-ermarket' and 'u-ermarket'

under t+e Ki-a brand. Ki-a 54tra3ormat laun(+ed 2010.

/DU)57 e'(o:Mintel

%ons&mer pro#ile

?rimar s(oppers

Dne &ould e4-e(t a bu'ine'' a' large a' e'(o to attra(t a (u'tomer ba'e broadly inline &it+ t+e -o-ulation. +e )1 : )2 di33eren(e' are a little odd, but ot+er&i'e t+e

ariation' are little more t+an 'am-ling error'. Ho&eer, t+ere i' a 'mall bia' toyounger age grou-' A t+o'e &+o +ae been +arde't +it in t+e do&nturn.

F67UR8 1+/7 e'(o 8 Primary '+o--er' by gender, age and 'o(io8e(onomi( grou-,

9ugu't 2011

ien e'(o' 'i*e, t+e regional ariation' are a little 'ur-ri'ing. +e relatie&eakne'' in ?ondon re3le(t' t+e 'trengt+ o3 /ain'bury' and in t+e ort+ 5a't t+e

+eartland o3 Morri'on' and 9'da.



14/18

F67UR8 107 e'(o 8 Primary '+o--er', by region, 9ugu't 2011


15/18

F67UR8 127 e'(o 8 /e(ondary /+o--er' A by gender, age and 'o(io8e(onomi(

grou-, 9ugu't 2011


16/18

F67UR8 147 e'(o 8 /e(ondary /+o--er' A by region, 9ugu't 2011

rou- ?td. 16


17/18

/DU)57 )om-any 9((ount' and 9nnual e-ort':Mintel

Range From around #,000 line' in an 54-re'' to oer 1E0,000 in

an 54tra. +e non83ood range i' 'u--lemented by t+e e'(oNire(t (atalogue and online (+annel.

'rands < Food )learly 'tru(tured o&n brand' &it+ Oalue entry leel%,e'(o (ore o&n brand% and Fine't Premium%, and &it+

many -remium 'ub8brand'.'rands < non-#ood FF 3ormerly Floren(e Fred% and )+erokee in (lot+ing.

Many ot+er', 'u(+ a' e(+nika 3or entry leel bro&n good'.?ricing Hig+ly (om-etitie, but +a' been u-'taged by 9'da /ee

/trategi( 5aluation%Marketing Hig+ -ro3ile (am-aign', but a +eay relian(e on )lub(ard,

&+i(+ may no& be 'een to be mi'-la(ed.

e-commerce and (ome s(opping

e'(o &a' t+e 3ir't to deelo- a -ro3itable model 3or online gro(ery '+o--ing,'eri(ing all demand 3rom lo(al 'tore', and it i' 'till ea'ily t+e market leader. e'(o

+a' moed on a little in t+at it no& +a' 'ome Bdark 'tore'C, t+ere u't to 'eri(earea' o3 +ig+ demand. +ey are laid out like normal 'tore' but do not allo&

(u'tomer' in. e'(o +a' 'till not moed to a &are+ou'e8'tyle o-eration and '+o&' no'ign o3 +aing any in(lination to do 'o.

It +a' added e'(o Nire(t to t+e gro(ery model o33ering a (om-re+en'ie non83ood

o33er bot+ online and t+roug+ a (atalogue.

+e bu'ine'' +a' been +ig+ly 'u((e''3ul and a--ear' to +ae +it 9rgo', it' mo'tobiou' dire(t (om-etitor.

+e online -ro3ile i' 'lig+tly di33erent to t+e in8'tore one, &it+ a greater 'trengt+among


18/18

F67UR8 17 e'(o7 Dnline (on'umer demogra-+i(', t+ree mont+ aerage to 9ugu't

2011

/DU)57 )om'(ore:Mintel

e'(o al'o o-erate' online in Ireland and /out+ Korea. 2011:12 &ill 'ee it laun(+ in

t+e )*e(+ e-ubli( and Poland.

otal 'ale', in(luding /out+ Korea and Ireland, in 2010:11 &ere 2. billion, u- 1E$.Derall UK 'ale' &ere oer 10$ a+ead and e'(o Nire(t 'ale' ro'e #0$. e

e'timate t+at UK 'ale' &ere o3 t+e order o3 2.1 billion, in(l O9.


Documents

Food Retailing UK 2011