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Tesco

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Tesco
Hello, and welcome to all of you. I am happy to see that so many people showed up to hear about Tesco, and the future of Tesco. My name is Patrick Jensen, and I am a PR assistant at Tesco. As you probably know, I am here today to talk about some of the problems that, we at Tesco are currently facing, I will also be talking about our efforts to solve these problems.
We at Tesco has been facing some problems in the past few years. If some of you follow the stock market, you have probably noticed, that Tesco shares have fallen by 20%. We have also opened our new chain “fresh & easy” which did not get the start, we had hoped. “Fresh & easy” opened at a very bad time, right before the financial crisis, which was very unfortunate. One of the biggest problems is that we have not lived up to our customers’ expectations. Two third of our profit comes from our UK stores, and our stores have not lived up to our high standards, in the last couple of years. We have not had enough staff around, many of our shelf are empty too often and most importantly, some of our product’s quality has dropped.
Even though we have some problems at Tesco, we have a clear strategy to grow. We have made a six-point-plan for the UK. The first point is service and staff. Because of the big growth in number of Tesco stores in UK, the service has dropped as well as the amount of staff per store. This is of course not acceptable, therefore we are hiring 20,000 extraTesco staff. The second point is, stores and format. Some retail experts have said that Tesco´s stores are "too industrial" and "lack warmth". Therefore, Tesco has made their stores more comfortable, with softer colors and pleasant pictures of groceries. The third point price and value. The quality of some of Tesco´s products has dropped, and as a result, you will not get the same value for your money. Our solution is, to make a completely new brand called “Everyday value”, it is a higher quality and with better ingredients. The fourth point is range and quality. This point is a lot like the previous point regarding quality. This point also focus on the range in our stores, the selection are going to be greater than before. The fifth point is brand and marketing. We need to make a name for our new brand “Everyday value”. Our old brand had an ailing reputation, we do not want this to happen to our new brand, and therefore the quality is better. The last and sixth point is clicks and bricks. Today we are in the era of the internet, it has changed the way we live, and it will change the way we shop. At Tesco the only thing we can do about it, is to reflect it. We have made something we call “Click&Collect” with this, you can order your groceries online, and collect it at any store of you choice. Smartphones popularity has increased dramatically in the last few years. That is why we have made an app for smartphones, it will change the way people buy their groceries. We have also made something, that has never been seen before. It is a virtual supermarket, located in airports. On this virtual supermarket, you can select your groceries from a big touchscreen. When you find a product you want, you just scan the barcode. The groceries will then, be delivered to your home, in time for when you get back. The smart thing about this is that people often have long waiting time at airports. So instead of just waiting, you can use your time on some sensibly.
“Fresh & easy” was just not the business for Tesco. Therefore, we choose to sell “fresh & easy” to Yucaipa Companies in November 2013. “Fresh & easy” did never launch as successful, as we intended. That is why, we at Tesco decided that the best option, would be to sell it.
At Tesco, we believe that the introduction of these six points will get Tesco back on track. We have tried to reconnect with our customers. We have listened to their request and looked through their reviews. We are convinced that these adjustments later on will bring Tesco’s shares back to the value it was before.
I will like to thank your all for listening, I hope that you all enjoyed my speech. If some of you have questions or comments, you are very welcome to ask me afterwards. You are also welcome to send me an email if you have additional questions for me, or you want to know even more about Tesco. My email is Patrickjensen@tesco.com, I promise to answer all your questions as fast as possible.

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[ 1 ]. http://www.tescoplc.com/index.asp?pageid=17&newsid=804

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