Shift in warehousing emphasis plays part in Tesco growth
April 23rd 2010 Retail giant Tesco has continued to grow despite the downturn, with an 8.5% increase in Group sales (ex-petrol) year on year and 6.8% (inc-petrol) at £62.5bn.
The group also reported 12.3% growth in trading profit and a 10.1% rise in underlying profit before tax in its 2009/10 preliminary results report.
The report put this performance in part down to the company’s moves to improve stock management including storing stock on the top of shelves on the shop floor rather than in the warehouse.
Tesco also implemented more efficient ordering systems, a greater focus on clearing promotional and dis-continued lines and better in-store monitoring processes.
The company said: “The results have not only increased availability based on our dotcom
picking measure and reduced evening gaps in fresh food by 18% but the resulting
reduction in stock across our store network has made a significant contribution to our
improved working capital position.”
Chief executive Terry Leahy added: “By remaining focused on our strategy Tesco has weathered the economic storm well. Across the Group, we have successfully adapted our cost structures and ranges to help customers save money when they’ve needed to and treat themselves when they’ve wanted to.
“Our positions in international markets and non-food meant we faced strong headwinds when the downturn came but it will be these parts of our business which will grow fastest as the recovery strengthens.” More articles from Handling & Storage Solutions: | 
