Good morning everyone, and welcome. My name is [NAVN A], and I am the PR assistant at Tesco.
Today, I would like to talk to you about our current problems followed by me commenting on some of our efforts to solve the problems, taking the changing consumer behavior into consideration. If you have any questions throughout my speech, then don’t hesitate, just put your hand in the air, and I will try to answer as good as I possible can.
Tesco have had some of its worst years in history, as we came out with a profit warning, showing that our profits were lower than we’ve expected, and our stocks have fallen with 20%, which caused a loss of the market value of 5 billion pound. Since I was here last time, in August 2010, we’ve fired the former CEO chief, Terry Leahy, who had been at Tesco from March 1997 until March 2011. At the time, he was with us, he made Tesco expand very much, and some people actually saw him as a “too successful” man, and with that came a lot of critics. The critics thought that he didn’t think of the economy anymore and that he wasn’t so focused on the quality and service as he used to. To take over his job, we hired Phillip Clark as our new CEO. His plan with Tesco is to get us back at the high part of the market which will be a very tough task, but I think he can do it! Recently we had a price drop, which made us a discount store, instead of being the quality store, as we want to. At that time, we did not meet our own or our costumers expatiations, and that made us close 182 of our stores. Our plan, closing those stores, was to try and regain our good reputation. We introduced our own, and new label, called “Every Day Value” which is a cheaper product, but still good quality. Besides that, we also introduced “bake off”, in our stores – that means freshly baked bred and cakes all day long. Later on, we made some research, asking what people thought about our products, referring to design, color and so on. The feedback showed, that the costumers thinks that our colors are to harsh, and with that, we added some softer colors. Besides that, we’ve recived a lot of complaints about our lack of employees to provide a better service and to do something about the empty shelves. As a respond to that, we decided to employ about 20.000 extra employees in the next couple of years – so far we’ve hired nearly 8000 people. Recently we made club cards, so that if our costumers are unsatisfied with something, we are able to listen to their idea through this card. We also invested 150 million pounds in online shopping, so you can buy mainly non-food products. Followed by that, we made an app to download directly to your phone. Through your phone, you can shop and go straight to one of our stores, and pick up your ordered products – of coursed packed, and ready to go. By doing these things, our sales have already increased by 7,4%, and we are planning on investing about 1 billion pounds on stores in the UK market.
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