Tesco: Udfordringer og strategier i detailhandlen

Hello, and welcome here at the London School of Economics.

I am glad to see so many of you. I am a PR assistant at Tesco and my name is Simon Leonhardt Hansen, and today I would talk a little about some of Tesco´s problems. I have taken some issues into my consideration, and made some notes on some of the work efforts we at Tesco have made to solve them. A part of solving the problem is on the changing consumer behavior. And if you have any question please give them to me after the presentation. Tesco have had some of our badly years in history. In January we came with a profit warning showing that we have had lower profits as expected. And the stocks have fallen 20% and it has had a loss of the market value of 5 billion pound sterling. After Tesco´s many successful years we have fired our old boss, former CEO Chief Terry Leahy who had been CEO from March. 1997 until March. 2011. He made Tesco expand so much, that some thought of him to be “too successful” and he was criticized a lot because of this. The critics thought that he had forgotten to think on the economics, and to stay focus on our driver’s values, which is Quality and Service. The new CEO is Philip Clark who´s expected to get Tesco back on the high part of the market. He will obviously be facing a long and hard task. We had an ill-fated price drop, which means that we have been a discount store instead from being a quality store. This also meant that we did not live up to our own and costumers´ expectations. The consequences’ of this was that we decided to drop 182 of our branches. And we could start reconnect with the costumers and change our corporate culture. Another think we thought we could make this possible with was by introducing the new private label called Every Day Value. It is a product as will give the customers a chance to buy quality products for a reasonable price. We have also opened a few bakeries in our stores to give the customers a better experience. Then we made some research on our products, and we asked our customers what they thought of them, referring to design and colours. It turned out that our costumers thought our colours to be “too hard”. The result of this research was that we added softer colours of course. We at Tesco have received a lot of complaints from our customers referring to the lack of employees to give a better service and empty shelves. That's why we are going to employ twenty thousand extra employees. So far we´ve managed to employ an estimated 8000 new employees to improve the service and to avoid the empty shelves. In the year 2007 Tesco founded Fresh&Easy in USA. But Tesco shouldn’t have done that. Fresh&Easy failed to take off and you could blame it on financial crises. Therefore we decided to shut it down so we could re-launch later. But don't get me wrong Tesco isn´t all bad. We are very satisfied with our international activities in Europe and Thailand. In Thailand Tesco raised 600 million pounds sterling with the floatation of property funds in Thailand. By doing that they raised their shares approximately 10%. Here´s just another funny fact, did you know that every time 7 Pounds is used in the UK one of them is used in Tesco. As well we have some mayor investors like Warren Buffet, Black Rock and Singapore GVT. This is what we have done and what we are going to do. So far we have now made club cards for the customers. This means that if they are unsatisfied with something in our stores we are able to adapt and listen to the customers´ ideas. We have invested 150 million pounds in online shopping, which mainly is for selling non-food products. Then we made an app for the use on your phone. This will make it possible for you to shop from your phone, and go straight down to our stores and pick up our products, which of course is ready to go. By doing these things and keeping on we can now all ready see that our sales has increased by 7,4% and we will keep on investing in the stores on the United Kingdom market with about 1 billion pounds. I believe that we at Tesco have done a great job so far. But there is still a long way to go. If we want to keep on being one of the biggest companies in the world we have to keep on focusing on the constant changing culture and behaviour of our customers. People are deferent. We will make Tesco to the best shop for you! Thank you for listening, again my name is Simon Leonhardt Hansen, and I hope you a happy to hear about our future plans. Any questions about the Tesco brand?