Recent performance

Question 1

Aldi Price match

Answer 1

Tesco match Aldi, the UK’s cheapest supermarket, on more than 600 lines

Aid in Tesco being the UKs cheapest full line grocer for 19 consecutive months

Question 2

Clubcard

Answer 2

High customer penetration at 82%, substantially cheaper prices and personalised rewards

Question 3

Market Share and recent performance

Answer 3

27.7% marker share

Cheapest full line grocer for 19 months

15 months of positive switching gains, up +59bps in the reporting year through April 2024. Important to note that net switching gains from premium retailers e.g. Waitrose & M&S have been positive for 22 months

Question 4

Grocery price inflation, still having an impact on consumption trends?

2

Answer 4

Fell to 1.6% this month, 2.4% in June

Barclaycard data for July 2024 shows 63% of UK customers are still looking for ways to cut grocery spending

Question 5

Cost savings

Answer 5

Plan to deliver a further £500m of efficiency savings in 2024/25 - space realignment and energy efficiency initiatives through LED lighting

Question 6

Wage Growth rising slower than sales

Answer 6

When Wages rise ahead of sales, discounters margins are less impacted than full line grocers where wages represent a higher proportion of sales

Conversely, when wages rise slower than sales, full line grocers will see a bigger positive impact on margins than discounters

UK inflation coming down, around 2% right now

Question 7

Online Shopping importance?

Answer 7

Key importance, Ocado been fastest growing grocer for 4 consecutive periods, whoosh can help Tesco remain competitive but need to up exposure through marketing

Question 8

Value Perception

Answer 8

Value perception up 88bps in 2024FY