Tesco Bank announces the appointment of Gerry Mallon as its new Chief Executive

Tesco Bank announces the appointment of Gerry Mallon as its new Chief Executive

Welwyn Garden City, UK, 2018-Jan-25 — /EPR Retail News/ — Tesco Bank is delighted to announce the appointment of Gerry Mallon as its new Chief Executive. Gerry, who will be a member of the Tesco Group Executive, will begin his role towards the end of July 2018.

Gerry will join from Ulster Bank, where he is currently Chief Executive. Prior to Ulster Bank, he was Chief Executive Officer of Danske Bank UK from 2008 to 2016.

Gerry has also held senior positions at Bank of Ireland, McKinsey and Co, the Industrial Development Board for Northern Ireland, and the Northern Ireland Civil Service.

Dave Lewis, Chief Executive of Tesco Group PLC, said:

“I am delighted that Gerry is joining Tesco to lead Tesco Bank and sit on the Group Executive. He joins Tesco Bank at a time of increasing digital change in financial services, which offers Tesco a brilliant opportunity to further develop and grow the helpful services we provide our customers through banking and insurance.”

Gerry Mallon said:

“I am thrilled to be joining Tesco Bank as Chief Executive. Tesco Bank has a unique opportunity to provide for millions of Tesco customers, and I am ready to meet the challenge of being the Bank for people who shop at Tesco. Equally, I am excited to embrace the culture of Tesco, which differentiates the Bank as it relentlessly puts customers first.”

ENDS

For more information and media enquiries please contact:

Tesco Bank Press Office
+44 (0) 131 274 3630 / +44 (0) 7595 441 036

About Tesco Bank

Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco.

Tesco Bank has been around since 1997 and today we help more than 5 million customers every day with a broad range of services from insuring their pets to buying their first home. Our 4,000 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7.

Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. 173199. Registered Address: EHQ, 2 South Gyle Crescent, Edinburgh, EH12 9FQ. www.tescobank.com

For more information please contact the Tesco Press Office on 01707 918 701     
We are a team of over 450,000 colleagues dedicated to serving shoppers a little better every day.

SOURCE: TESCO PLC.

“Little Helps for healthier living” partnership: British Heart Foundation, Cancer Research UK, Diabetes UK and Tesco partner to help tackle the biggest health challenges

“Little Helps for healthier living” partnership: British Heart Foundation, Cancer Research UK, Diabetes UK and Tesco partner to help tackle the biggest health challenges

 

Welwyn Garden City, UK, 2018-Jan-10 — /EPR Retail News/ — Three of the UK’s leading health charities have today come together with the UK’s leading food retailer to help tackle the nation’s biggest health challenges.

The partnership, “Little Helps for healthier living”, will bring together the skills and expertise of the British Heart Foundation, Cancer Research UK, Diabetes UK and Tesco to help lower the risk of heart and circulatory disease, cancer and Type 2 diabetes.

Over the next five years, the four organisations will work together to help Tesco’s 300,000 UK colleagues and millions of UK shoppers by removing barriers to healthier habits. Since 2015, Tesco shopping baskets have got healthier each year, and the new partnership will aim to speed up this progress with Little Helps that make a lasting difference to Britain’s shopping baskets.

A key starting point for this work will be to establish the UK’s leading workplace health programme, helping Tesco colleagues to be at their best at work and at home. The workplace health programme will build on a series of steps taken by Tesco over the last 12 months, including healthy deals and discounts, free health checks, and a growing focus on supporting the mental health of colleagues.

The four organisations have pledged to share the findings from their work across the wider UK health community to help accelerate progress towards national and international public health goals. The aim is to bring about a measurable improvement to the health of the nation, by developing Little Helps that make a healthy difference to shopping baskets all over Britain.

Speaking ahead of the launch of the new partnership, Dave Lewis, Chief Executive of Tesco, said:

“I’m really excited by what we’re announcing today. This is a unique partnership, which will bring together the skills and expertise of the UK’s leading health charities and the UK’s leading food retailer to help tackle the biggest health challenges facing the nation.

Together with the British Heart Foundation, Cancer Research UK, and Diabetes UK, we want to help people take small steps on their own terms to develop healthier habits. It’s about unlocking the energy, expertise and reach of our different organisations to develop little helps that make healthy differences across the whole country.”

Simon Gillespie, Chief Executive of the British Heart Foundation, said:

“This unique partnership has the potential to significantly lower the risk of some of the UK’s deadliest diseases. Working together, we can create initiatives that inspire people to take steps to change their behaviour. Measuring the impact of these initiatives could also pave the way for new and innovative strategies for empowering staff and communities to take control of their health in ways that can be adopted across the country.”

Sir Harpal Kumar, Chief Executive of Cancer Research UK, said:

“This is a landmark moment in our relationship with Tesco, which has already run for an incredible 16 years. This new partnership has the potential to transform the health of millions of people. We’re excited about the opportunity to engage Tesco colleagues and customers across the UK to increase awareness of cancer and encourage simple lifestyle changes that can help lower their risk of the disease.

The partnership builds on the success of Tesco’s longstanding commitment to Race for Life, which has already encouraged millions of women to get active across the country.”

Chris Askew, Chief Executive of Diabetes UK, said:

“This powerful new partnership has the potential to meet, head on, some of the biggest health challenges facing people living in the UK today.

Today is an exciting day: Together, we’ll be able to reach the millions of people at risk of Type 2 diabetes, cardiovascular disease and cancer, and help them make positive changes to their health in a way we’d never have been able to do working alone.”

Over the next five years, the new partnership will help to encourage and support sustainable, measurable changes in behaviour, through a series of targeted activities and campaigns aimed at reducing the risk of heart and circulatory disease, cancer and Type 2 diabetes. These will include:

  • Developing the UK’s leading workplace health programme for Tesco’s 300,000 UK colleagues
  • Aligning communication campaigns in store and online with national health campaigns;
  • Training Tesco pharmacists to help them better support customers in the prevention and management of heart and circulatory disease, cancer and Type 2 diabetes;
  • Sharing anonymised sales information to help develop insight on health policy and public health programmes;
  • Fundraising for more health research – innovative and engaging fundraising initiatives that help customers and colleagues raise money for the three charities.

Notes to Editors:

The British Heart Foundation, Cancer Research UK and Diabetes UK are three of the UK’s leading health charities. More details on each organisation can be found here:

www.bhf.org.uk

www.cancerresearchuk.org

www.diabetes.org.uk

Tesco plc is the largest retailer in the UK. More details on our business and our approach to corporate responsibility can be found here:

www.tescoplc.com/little-helps-plan

We are a team of over 450,000 colleagues dedicated to serving shoppers a little better every day.

For more information please contact the Tesco Press Office on 01707 918 701

Source: Tesco

###

Tesco announces partnerships with suppliers to tackle UN Sustainable Development Goal on food waste

Welwyn Garden City, UK, 2017-Sep-25 — /EPR Retail News/ — Tesco announces ground-breaking partnerships with suppliers to tackle UN Sustainable Development Goal on food waste.

Speaking at a meeting of Champions 12.3 in New York today, Dave Lewis, CEO, Tesco announced partnership agreements with 24 of its largest food suppliers who will adopt the Sustainable Development Goal to halve food waste by 2030[1].  The suppliers, who represent over £17bn worth of Tesco sales, will publish food waste data for their own operations within 12 months, and have committed to take the steps needed to reduce food waste in their supply chain as well as innovating to make it easier for consumers to reduce waste in their homes.

In addition, Tesco announced its businesses in the Republic of Ireland, Poland, Slovakia, Czech Republic and Hungary have published their food waste data, following four years of publication in the UK. The move builds on Tesco’s commitment to transparency on food waste data to use that information to help reduce food waste in its operations.

Leading food waste campaigner Tristram Stuart welcomed the news outlining Tesco as ‘the world-leading supermarket’ on reporting food waste:

“We have been challenging Tesco and other supermarkets on transparent reporting of food waste for years now. This commitment to ensure that supply chain waste is measured and reported makes Tesco the world-leading supermarket on transparent food waste reporting, and represents a significant step towards meeting the global goal to halve food waste by 2030. It’s time for other businesses to follow suit, and for Tesco, along with the rest of the world’s supermarkets, to demonstrate, if they can, that their businesses are not inherently wasteful.”

In his speech, Mr Lewis said:

“Great progress has been made, but the reality is that we need many more companies, countries or cities committing to halve food waste by 2030, measuring and publishing their data and acting on that insight to tackle food waste. I am delighted that many of our major suppliers have taken this important step so we can work in partnership to reduce food waste”

The suppliers involved in the agreement are: Yeo Valley; Gomez; Branston; Greencore; Icelandic Seachill; AMT; DPS; Kepak Meat Division; G’s; Allied Bakeries; Moy Park; Richard Hochfeld; Ornua; Cranswick; Samworths; 2SFG; Hilton; Espersen; Greenyard Frozen; Müller Milk & Ingredients; Kerry Foods; Bakkavor; Froneri; Noble.

The supplier agreement is the first struck between a major retailer and its food suppliers. It follows agreements over the last 12 months at The Institute of Grocery Distribution (IGD) and Consumer Goods Forum (CGF) with branded suppliers to align efforts around Champions 12.3 goals.

 

Notes to editors

Champions 12.3

Tesco’s CEO, Dave Lewis, chairs a coalition of leaders from government, businesses, international organisations, research institutions, and civil society called Champions 12.3. This group is dedicated to accelerating progress towards achieving the UN Sustainable Development Target 12.3 by 2030.

Target 12.3 is to halve per capita global food waste at the retail and consumer level, and reduce food losses along production and supply chains by 2030.

Champions 12.3 offers three recommendations for leaders to meet Target 12.3 by 2030:

  • Target: Targets set ambition, and ambition motivates action. Every country, major city and company involved in the food supply chain should set food loss and waste reduction targets consistent with Target 12.3 in order to ensure sufficient attention and focus.
  • Measure: What gets measured gets managed. The report recommends governments and companies quantify and report on food loss and waste and monitor progress over time through 2030.
  • Act: Impact only occurs if people act. Governments and companies should accelerate and scale up adoption of policies, incentives, investment and practices that reduce food loss and waste.

In March 2017 Champions 12.3 released a report showing the business case for taking action on food waste. Based on analysis covering 1,200 business sites across 700 companies in 17 countries – representing the manufacturing, retail, hospitality and food service industries – the report shows that almost every time a business made an investment in curbing food waste, there was a positive return on that investment. For every $1 invested in reducing food waste, half the business sites had at least a $14 return.

The new SDG Target 12.3 on Food Loss and Waste: 2017 Progress report highlights progress to date and includes a roadmap of required actions by companies, countries and cities if the world to halve food waste by 2030.

For more information, visit www.Champions123.org

[1] 23 of Tesco’s largest suppliers will adopt the 2030 target for their global operations and one for their UK operations.

For more information about our food waste click here.

For more information please contact the Tesco Press Office on 01707 918 701     
We are a team of 480,000 in 11 markets dedicated to serving shoppers a little better every day.

SOURCE: Tesco PLC

Tesco Bank celebrates 20th anniversary!

Edinburgh, United Kingdom, 2017-Jul-05 — /EPR Retail News/ — Today (4 Jul 2017) Tesco Bank celebrates 20 years of serving Tesco shoppers. In that time Tesco Bank has established a full range of retail banking products and has seen strong growth in traditional banking markets, including current accounts and mortgages, as well as innovating in the payments sector.

Originally established in 1997 as a joint-venture with the Royal Bank of Scotland, it became 100% Tesco owned in 2008.  Over the past 9 years Tesco Bank has enjoyed significant growth and expansion, employing 4000 people across three sites in Edinburgh, Glasgow and Newcastle.

Since full ownership in 2008, Tesco Bank has:

  • Increased customer account numbers from 5.8m to 8.0 million
  • 1 in 4 Clubcard customers has a Tesco Bank product
  • Customer deposits now exceed £8.5 billion, up £5.2 billion
  • Customer lending now exceeds £10 billion, up £6.1 billion
  • Increased total employee numbers from 200 to 4000 at Edinburgh, Glasgow and Newcastle locations
  • Given back to our local communities by raising over £2 million for our charity partners

As the Bank marks this anniversary, Benny Higgins has announced that he will be retiring from Tesco in February 2018. Benny joined Tesco Bank as CEO during its move to full Tesco ownership in 2008 and was also appointed Group Strategy Director in 2014.

Commenting on Benny Higgins, Dave Lewis, said:-

“Benny has steered Tesco Bank to the strong position it is in today.  The strong growth in customers, deposits and lending is down to his leadership.  It has been a pleasure having him on the leadership team, and we wish him all the best in his future endeavours.”

Commenting on the Tesco Bank anniversary, Benny Higgins, said:-

“As Tesco Bank celebrates its 20 year anniversary, I want to take time to recognise the achievements of colleagues in serving our 6 million customers.   I am very proud of what we have achieved together and it has been a privilege to work in Tesco Bank and across Tesco for what will have been ten years.”

For media enquiries and further information, please contact:

Chris Sibbald
Head of Communications
Chris.sibbald@tescobank.com
+447855955531

Source: Tesco

Tesco announces changes to its Executive Committee and International Leadership team

CHESHUNT, England, 2017-Mar-23 — /EPR Retail News/ — Tesco has today (20 Mar 2017) announced changes to its Executive Committee and International Leadership team.

After 38 years of distinguished service to Tesco, Trevor Masters, CEO Tesco International, will leave the business at the end of May.

Trevor began his Tesco career as a teenage management trainee. Over the last four decades, he has served as Operations Director for the UK, a member of the Executive Committee and CEO of our International business. His contribution to Tesco has included growing our Extra format; building our JV businesses in India and China; and rationalising our international business over the last two years.

Following the completion of the sale of our Turkish business, we will be giving greater focus to the two parts of our international business. This includes creating two new roles leading Asia and Central Europe on our Executive Committee.

We are pleased to announce that from 1 April, Tony Hoggett will become Tesco’s CEO Asia and Matt Simister will become Tesco’s CEO Central Europe.

Tony Hoggett joined Tesco as a sixteen year old student in 1990. He managed a number of stores across northern England before being promoted to Stores Director. In 2007 Tony moved to China, where he led our business in the South. In 2010, Tony joined the Turkish Board as Chief Operating Officer. He returned to the UK in 2011 and joined the UK Leadership Team as Retail Director in 2014 before becoming UK Chief Operating Officer in 2016. Over the last three years, Tony has led the transformation of our service model and customer experience in the UK.

Matt joined Tesco in 1996 initially as a marketer, and subsequently worked extensively across different categories in our Product team. After three years as Commercial Director for our Czech and Slovak businesses, Matt returned to the UK to set up our Group Food capability, managing our regional fresh food and Tesco Brand sourcing, buying and inbound supply chains for the UK, ROI, Central Europe and Asia.  For the last two years, Matt has integrated these capabilities into the UK business, and led his team to an exceptional trading performance across Fresh Food and Commodities, as part of our UK ambition to become First for Fresh.

Dave Lewis, Tesco Group Chief Executive, said:

“I’d like to thank Trevor for everything he has done for our business over the last four decades. He has worked tirelessly to strengthen and simplify our international business, and we couldn’t have made the progress we have without him.

“Tony and Matt’s work has been at the heart of Tesco’s turnaround over the last two years and I’m delighted that they will join our Executive Committee. Their new roles will allow us to focus on the different opportunities presented in Asia and Central Europe and I’m looking forward to working even more closely with them both”.

Notes:

  • Over the last two years, Tesco’s Executive Team has been simplified from 16 roles down to 11
  • Other roles in Tesco’s International Leadership team will remain in place, reporting to Tony Hoggett (Asia) and Matt Simister (Central Europe)

We are a team of 480,000 in 11 markets dedicated to serving shoppers a little better every day.

For more information please contact the Tesco Press Office on 01707 918 701  

Source: Tesco

Tesco launches online ‘food waste hotline’ to help suppliers and growers identify food waste hotspots

Tesco launches online ‘food waste hotline’ to help suppliers and growers identify food waste hotspots

CHESHUNT, England, 2017-Mar-15 — /EPR Retail News/ — Tesco has launched an innovative, online ‘food waste hotline’, to help make it easier for suppliers and growers to pinpoint ongoing food waste hotspots, and work with the retailer in tackling them.

The ‘hotline’ is accessible to all Tesco suppliers via the retailer’s online Supplier Network, a resource used by over 5,000 Tesco partners regularly. The ‘hotline’ will serve as a new link between these businesses and Tesco Product teams, and will enable them to alert Tesco to potential supply chain food waste and work together to take action.

Supply chain food waste accounts for a significant proportion of UK food waste. Tesco is committed to helping halve all UK food waste by 2025 and currently works closely with suppliers to reduce food waste where it occurs.

For instance, last summer’s weather meant a warmer period than forecast and as a result the strawberry crop all ripened at the same time. Tesco’s response was to take the whole crop and introduce large boxes of strawberries to stores at a market leading price – helping customers and avoiding food waste on farm. |

The ‘hotline’ will provide another way for this to continue, while enabling Tesco to work directly with suppliers to identify emerging as well as the more long term food waste issues they face.

Matt Simister, Commercial Director, Fresh Food and Commodities at Tesco, said:
“At Tesco, we have no time for waste, and we are committed to reducing food waste wherever it occurs, from farm to fork.

The ‘food waste hotline’ is another little help we are making to achieve this with our suppliers. It helps our suppliers gain direct, easy access to our Product teams, and this will enable us to identify food waste hotspots and systemic issues and work in partnership to tackle them.”

Notes to editors
• The ‘food waste hotline’ another part of Tesco’s ongoing work to tackle food waste under its No time for waste campaign and commitments. For more information go to www.tescoplc.com/foodwaste.

• Tesco has made a commitment that no surplus food will be wasted in its UK operations by the end of 2017. For more information on Tesco’s commitment to tackling food waste, visit www.tesco.com/foodwaste

• Tesco CEO Dave Lewis chairs Champions 12.3, a coalition of leaders from government, business, research and civil society. This group is dedicated to accelerating progress towards the UN Sustainable Development Target 12.3. – to halve per capita global food waste at retail and consumer level, and reduce food losses along production and supply chains by 2030.

 

About the Supplier Network
The Supplier Network is Tesco’s online community for all Tesco teams, suppliers and producers from around the world. The network enables members to share knowledge, build a more sustainable supply chain and innovate together.

Contact:
Tesco Press Office
01707 918 701

Source: Tesco

Tesco announces the appointment of Alessandra Bellini as Chief Customer Officer

Tesco announces the appointment of Alessandra Bellini as Chief Customer Officer

 

CHESHUNT, England, 2017-Jan-14 — /EPR Retail News/ — Tesco is pleased to announce the appointment of Alessandra Bellini as Chief Customer Officer, from 1 March 2017. Alessandra will join the Executive Committee and the UK Leadership team.

Alessandra joins from Unilever where she has worked for over 20 years, latterly as the Vice President for the Food Category in North America and Food General Manager for the USA. She has a track record in growing global and local brands as well as a passion for developing her people. An international executive, Italian-born Alessandra has held executive level roles in markets including Italy and Central and Eastern Europe. Prior to joining Unilever, Alessandra had a 12 year career in advertising, both in the UK and in Italy.

Speaking of the appointment, Dave Lewis, Tesco Group Chief Executive, said:

“I’m delighted that Alessandra is joining the team at Tesco. Her experience in building brands will be a valuable asset in the next stage of building a truly differentiated Tesco brand. She understands how to put the customer at the heart of business decisions, and has a great track record of building market-leading brands and teams. I am very much looking forward to having her on the team.”

We are a team of 480,000 in 11 markets dedicated to serving shoppers a little better every day.

For more information please contact the Tesco Press Office on 01707 918 701

Source: Tesco

###

New Champions 12.3 report calls on all nations to halve food waste and reduce food loss by 2030

New Champions 12.3 report calls on all nations to halve food waste and reduce food loss by 2030
New Champions 12.3 report calls on all nations to halve food waste and reduce food loss by 2030

 

Washington, D.C, 2016-Sep-24 — /EPR Retail News/ — A new report released assesses the world’s progress toward Target 12.3 of the Sustainable Development Goals (SDGs), which calls on all nations to halve food waste and reduce food loss by 2030. Given the magnitude of food loss and waste globally, the report recommends nations, cities and businesses in the food supply chain move quickly to set reduction targets, measure progress and take action to reduce food loss and waste.

One-third of all food produced is never eaten by people. The impact of this loss and waste worldwide is tremendous. Food loss and waste is responsible for $940 billion in economic losses and 8 percent of greenhouse gas emissions annually. Around 88 million tonnes of food are wasted annually in the European Union, costing an estimated 143 billion euros. The FAO reports that the amount of food wasted in Europe could feed 200 million people.

The new publication, SDG Target 12.3 on Food Loss and Waste: 2016 Progress Reportwas released on behalf of Champions 12.3, a unique coalition of leaders from government, business and civil society around the world dedicated to inspiring ambition, mobilising action, and accelerating progress toward achieving SDG Target 12.3.

Europe-based Champions include Tesco Group Chief Executive Dave Lewis (chair of Champions 12.3), European Commissioner for Health and Food Safety Vytenis Andriukaitis, President of the World Business Council for Sustainable Development Peter Bakker, Nestlé CEO Paul Bulcke, Chairman of the Executive Board for Rabobank Wiebe Draijer, Consumer Goods Forum Managing Director Peter Freedman, Wageningen University & Research Centre’s President of the Executive Board Louise Fresco, Senior Fellow and Director of Food Loss and Waste at World Resources Institute Liz Goodwin, CEO of WRAP (Waste Resources & Action Programme) Marcus Gover, Ambassador and Permanent Representative of the Netherlands to UN FAO Hans Hoogeveen, WWF International President Yolanda Kakabadse, CEO of Sodexo Group Michel Landel, Denmark’s Minister for the Environment and Food Esben Lunde Larsen, CEO of UnileverPaul Polman, Chairman of the Global Forum on Agricultural Research Juan Lucas Restrepo Ibiza, CEO and Chairman of the Managing Board for Royal DSM Feike Sijbesma, Director of the Oxford Martin School Achim Steiner and Feedback founderTristram Stuart.

According to the report, governments and organisations across Europe have taken a number of notable steps over the past year (SDG Target 12.3 was set in September 2015) to reduce food loss and waste:

  • European Union: The European Commission established the “EU Platform on Food Losses and Food Waste,” a collaboration amongst public and private actors to identify food loss and waste prevention measures, share best practice and evaluate progress over time in support of the delivery of Target 12.3.
  • Denmark: The Danish government has launched a grant program to support domestic projects for combatting food waste arising anywhere in the food supply chain—from production to consumption.
  • France: In February of this year, France adopted legislation that requires French supermarkets to donate unsold yet still edible food to charities.
  • Germany: The German Ministry of Agriculture has dedicated €10 million to develop “smart packaging” that uses electronic chip sensors to determine how food has aged and communicate to consumers the food’s freshness and safety.
  • Italy: A series of national measures to tackle food waste were adopted under a new law in August 2016 aiming to reduce the country’s total annual wastage by one million tonnes.
  • The Netherlands: In July, The Netherlands hosted the AU-EU Conference—Investing in a Food Secure Future in close cooperation with the African Union (AU) Commission and the European Commission. The conference identified food loss and waste reduction as a key area for improved AU-EU cooperation and developed a number of concrete actions that will be pursued in the coming year.
  • The United Kingdom: The UK has one of the most extensive estimates of country-level food waste in the world; the British non-profit organisation WRAP has published country-wide food waste estimates in 2007, 2010, 2012 and 2016. This year it launched a new voluntary agreement, the Courtauld Commitment 2025, aimed at reducing food waste by a further fifth.
  • The International Food Waste Coalition launched a program to reduce food waste in schools, with pilots in France, Italy and the United Kingdom.
  • In 2016, Tesco rolled out Community Food Connection, which utilises an online app with FareShare Food Cloud to link unsold yet still safe food with local food charities in real time, reducing the amount of food that goes uneaten.

However, considering the enormous scope of the food loss and waste challenge, Europe and other regions need to do much more. The report offers three recommendations for leaders to meet Target 12.3 by 2030:

  1. Target: Targets set ambition, and ambition motivates action. Every country, major city and company involved in the food supply chain should set food loss and waste reduction targets consistent with Target 12.3 in order to ensure sufficient attention and focus.
  2. Measure: What gets measured gets managed. The report recommends governments and companies quantify and report on food loss and waste and monitor progress over time through 2030.
  3. Act: Impact only occurs if people act. Governments and companies should accelerate and scale up adoption of policies, incentives, investment and practices that reduce food loss and waste.

To read the full report, visit https://champions123.org/2016-progress-report/.

Dave Lewis, CEO, Tesco: “It is vital that organisations begin measuring food waste, and set reduction targets.  In 2013, Tesco became the first and only UK retailer to publish independently assured food waste data. It was a move that was instrumental in showing us where we needed to focus our efforts. Once we identified the problems areas we knew where to act. By measuring food waste, setting targets and building action plans, organisations are able to manage food waste as they would other business critical processes.”

Vytenis Andriukaitis, European Commissioner for Health and Food Safety: “To fight food waste, we need to redesign our food value chain, eliminating waste at each stage and making any surplus food readily available to those in need.  This requires close co-operation of all actors and I am confident that the EU Platform on Food Losses and Food Waste will help accelerate our progress towards SDG Target 12.3”.

Peter Bakker, President and CEO, WBCSD: “Wasting a third of the food we produce is an alarming symptom of our profoundly broken global food system. It is easy to see the business logic in improving this ratio: what you don’t waste, you don’t have to produce. Addressing this through Target 12.3 will also bring a range of other benefits – we’ll require less natural resources for production, and we can improve food security and efficiency simultaneously. To help achieve this goal, WBCSD is bringing together companies from around the world to lead the way for the private sector in accelerating the transition to a world with truly sustainable food systems.”

Paul Bulcke, CEO, Nestlé: “Momentum is growing toward achieving Sustainable Development Goal Target 12.3. I am convinced that by working together, we can accelerate efforts and develop effective solutions to help reduce food loss and waste globally. Nestlé will play its part. Bold action is what matters, and we are already committed to achieve zero waste for disposal in our sites by 2020.”

Wiebe Draijer, Chairman of the Executive Board, Rabobank: “With the global launch of Champions 12.3 this year, essential stakeholders worldwide have committed to join efforts in the reduction of Food Losses and Waste. We believe it is now time to identify the most imminent causes of food loss, to develop solutions, and to assemble the coalition to identify business cases and make investments bankable.”

Peter Freedman, Managing Director, The Consumer Goods Forum: “The CGF is proud to be associated with Champions 12.3 and welcomes the report published today. Our Food Waste Resolution sets targets that are fully aligned with SDG 12.3 and we are now focused on implementing it. Consistent with the second step of the approach endorsed by Champions 12.3, this summer we partnered with the World Resources Institute to launch the first ever global standard for the measurement of food loss and waste (FLW). Now, consistent with the third step, we continue to support our members’ implementation actions, through educational webinars on the FLW Standard and sharing best practices.”

Liz Goodwin, Senior Fellow and Director, Food Loss and Waste, World Resources Institute: “It’s appalling that one-third of all food the world produces is lost or wasted. It’s not just about the lost food and the obvious economic, social and environmental impacts. Food loss and waste is also a significant contributor to climate change. We have a critical issue on our hands and we must better manage resources in order to sustain generations to come. I’m heartened at the efforts to reduce food loss and waste that have gained traction in the past year, and with even greater action by governments and businesses we can accelerate global progress toward Target 12.3.”

Marcus Gover, CEO, WRAP: “The world’s growing population has implications for land, environment and resources, so ensuring food systems are fit for the future is one of the biggest challenges of our time. WRAP has been working on this for over a decade, forging partnerships and galvanizing action through the Courtauld Commitment. As a result, since 2007, we have helped reduce food waste by over a million tonnes per year, across retail, hospitality and food service, and in the home. Our ambitious goals align with Target 12.3, and I’m delighted to see that through Champions 12.3, good progress is already being made.”

Hans Hoogeveen, Ambassador and Permanent Representative of the Netherlands to the UN Organizations for Food and Agriculture: “Worldwide, food loss and waste impedes food security and fuels climate change. For advancing the agreed 2030 Agenda for Sustainable Development this issue must be tackled today. Food that is ultimately lost or wasted consumes about a quarter of all water used by agriculture, requires cropland area the size of China, and is responsible for an estimated 8 percent of global greenhouse gas emissions.”

Yolanda Kakabadse, President, WWF International: “I am delighted to support this excellent initiative which aims to inspire ambition, mobilise action, and accelerate progress to reduce global food waste all along the path from source to the table. Reducing food loss and waste is a vital first step to achieve local and global food security whilst reducing the pressure on nature. It is the start of a longer journey to create a food system that ensures people and nature thrive in harmony.”

Paul Polman, CEO, Unilever: “The pathway to achieving a world where no food goes to waste is set out in Champions 12.3 Progress Report. We need to set clear targets, measure the problem and take action working with governments, private sector, civil society and consumers. Ending food waste will help fight food insecurity, reduce costs for the global economy and mitigate climate change.”

Achim Steiner, Director, the Oxford Martin School: “Whether you take an ecological, economic or ethical perspective, reducing food waste and loss makes eminent sense.  Recent efforts in Europe are heartening in terms of meeting SDG Target 12.3.  From information to legislation – we need ‘all hands on deck’ to ensure that producers and consumers can work together along the whole supply chain to ensure that food loss and waste are significantly reduced.”

Champions 12.3 is a coalition of executives from governments, businesses, international organisations, research institutions, farmer groups and civil society dedicated to inspiring ambition, mobilising action and accelerating progress toward achieving SDG Target 12.3 by 2030. World Resources Institute and the Government of the Kingdom of the Netherlands serve as co-secretariats of Champions 12.3.

We are a team of 480,000 in 11 markets dedicated to serving shoppers a little better every day.

Learn more at www.Champions123.org

For more information please contact the Tesco Press Office on 01707 918 701

Source: Tesco

###

Tesco to sell Dobbies Garden Centres to an investor group led by Midlothian Capital Partners and Hattington Capital

CHESHUNT, England, 2016-Jun-17 — /EPR Retail News/ — Tesco has today confirmed the sale of its Dobbies Garden Centres business to an investor group led by Midlothian Capital Partners and Hattington Capital.  The sale represents the entire share capital of Dobbies Garden Centres Ltd.  Tesco will receive £217m in cash, which will be used for general corporate purposes.

Tesco bought Dobbies Garden Centres in 2007, and since then it has grown to become the UK’s second largest specialist garden centre retailer, operating 35 garden centres across Scotland, England and Northern Ireland.

Tesco Chief Executive Dave Lewis said: 

“Through their hard work and dedication to customer service, Dobbies colleagues have built a great business, and I would like to thank them for everything they have done. It was a difficult decision to sell the business, but we believe this agreement will give Dobbies a bright future, while allowing our UK retail business to focus on its core strengths.”

Andrew Bracey and Barney Burgess, of Midlothian Capital Partners and Hattington Capital respectively, said:

 “We are delighted to have been chosen by Tesco to take ownership of the Dobbies Garden Centres business. It is a great business with fantastic colleagues. We’re very optimistic about the potential of the business, and we look forward to growing the business across the UK from its base in Scotland.”  

Tesco will continue to offer customers a wide selection of Home and Garden products through its own stores and online.

Notes

Gross assets relating to Dobbies Garden Centres Ltd. included in the Tesco PLC accounts as at 27 February 2016 were £255m.

Dobbies Garden Centres Ltd. made a contribution of £17m to Tesco PLC’s reported profit before tax for the year ended 27 February 2016.

Enquiries:

Tesco

Media                           Steve Milton                                        01707 918701

Investors                      Chris Griffith                                       01707 912900

###

Tesco to sell Dobbies Garden Centres to an investor group led by Midlothian Capital Partners and Hattington Capital

Tesco to sell Dobbies Garden Centres to an investor group led by Midlothian Capital Partners and Hattington Capital

Tesco CEO Dave Lewis urged collaboration in tackling food waste right across the supply chain at the Global Summit of the Consumer Goods Forum

CHESHUNT, England, 2016-Jun-17 — /EPR Retail News/ — In a keynote speech at the Global Summit of the Consumer Goods Forum in Cape Town today Tesco CEO Dave Lewis encouraged business to do more to tackle food waste, and called on the wider industry to publish their food waste data in order to make meaningful progress.

Appealing for action across the food industry, Dave Lewis urged collaboration in tackling food waste right across the supply chain – in farms, distribution, in supermarket operations, and in customer’s own homes.

A key part of this agenda is transparency. Tesco has published data on food waste in its own operations since 2013, and the approach has proved instrumental in helping identify hotspots in order to tackle root causes.

Dave Lewis said:

“When I arrived at Tesco we were the only UK retail company to publish our food waste data.

“What the data shows is that it’s clear where we need to focus our efforts…nearly three years after we announced it, we are still the only UK retailer publishing our data.”

He called on companies, in the short term, to do more to redistribute their surplus edible food waste to people in need.

Earlier this year, Tesco pledged its commitment to redistribute all of their edible food waste from stores to charities by the end of 2017.

He told the audience:

“Tackling #foodwaste makes sense for business, it will help people and our planet, and it’s also the right thing to do.”

Some of the actions Dave Lewis called for include:

  • Cutting time out of the supply chain to provide customers with fresher produce that lasts longer;
  • Widening specifications to take much more of the crop, maximising the amount of fresh produce Tesco can sell in stores. A new range of ‘wonky’ fruit and vegetables, called ‘Perfectly Imperfect’, was launched by Tesco in February;
  • Publishing data on food waste to identify hotspots and tackle problems;
  • Redistributing edible food to people in need, with a commitment to give away all surplus edible food waste from Tesco stores to charity by the end of 2017; and
  • Introducing simpler to understand date coding, and ending ‘buy one, get one free’ offers on fruit and vegetables.

In his speech, Dave Lewis highlighted the fact that:

  • A third of the world’s food is wasted – 1.3 billion tonnes;
  • Almost a billion people – one in nine globally – go to sleep hungry;
  • Food loss and waste costs the world  $940 billion per year in unnecessary costs;
  • The healthiest food is often the most wasted – in the UK around 800,000 tonnes of fresh veg and salads are wasted annually; and
  • More than 13 billion ‘5 a day’ portions of fruit and vegetables were thrown away in 2012, enough to provide more than 7 million people with their ‘5 a day’ for a year.

To support delivery of the UN Sustainable Development Goals, Dave Lewis is the Chairman of “Champions 12.3”, a coalition of leaders from government, businesses, international organisations, research institutions, and civil society which will work to create political, business and social momentum to halve food loss and waste around the world by 2030. It aims to inspire action by leading by example, motivating others to reduce food waste and communicating the importance of food loss and waste reduction.

Notes to editors

  • Also speaking at the event were Zelda La Grange, former private secretary for Nelson Mandela and Sir Martin Sorrell, founder and CEO WPP.
  • More information about Champions 12.3 can be found here: www.champions123.org
  • More information about The Consumer Goods Forum can be found here: www.tcgfsummit.com

For more information please contact the Tesco Press Office on
01707 918 701    

We are a team of 480,000 in 11 markets dedicated to serving shoppers a little better every day.

###

Tesco CEO Dave Lewis urged collaboration in tackling food waste right across the supply chain at the Global Summit of the Consumer Goods Forum

Tesco CEO Dave Lewis urged collaboration in tackling food waste right across the supply chain at the Global Summit of the Consumer Goods Forum

Tesco to sell Kipa business in Turkey to Migros and Giraffe restaurant chain to Boparan Restaurants Holdings Limited

CHESHUNT, England, 2016-Jun-10 — /EPR Retail News/ — Tesco today confirmed the proposed sale of its 95.5% controlling stake in the Kipa business in Turkey to Migros. The disposal, which is subject to usual local regulatory approvals, will result in estimated cash proceeds of around £30m, contributing to a reduction of around £110m in total indebtedness.

In a separate transaction, Tesco also announced its intention to sell the Giraffe restaurant chain to Boparan Restaurants Holdings Limited. The sale of Giraffe includes 54 standalone restaurants, of which 12 are franchise sites, and 3 restaurants within Tesco stores.

Commenting on the sales, Dave Lewis, Tesco Chief Executive, said:

On Kipa:

“The sale of Kipa reflects the particular strategic challenge we have faced in Turkey as a small regional player in a highly competitive market.  It removes the need for the sustained investment required to enable the business to compete independently, allowing us to focus on improving profitability in Central Europe and continuing to grow our businesses in South East Asia.

The sale agreement recognises the significant improvements in the performance of the business over the last 18 months and I would like to thank Kipa colleagues, suppliers and partners for their service during a period of considerable change.”

On Giraffe:

“As we stabilise the business in the UK, we continue to focus on where we can best serve the needs of our customers, while ensuring our business remains sustainable for the long-term.

Giraffe is a much loved brand, and while casual dining remains an important part of the shopping trip for many of our customers, we will continue to meet these needs through our Tesco Cafés and other providers. I’d like to thank colleagues from Giraffe for all their hard work in serving our customers and we look forward to seeing it develop in the future.”

 

Enquiries:

Media                          Steve Milton                  01707 918701

Investors                     Chris Griffith                  01707 912900

###

Tesco to sell Kipa business in Turkey to Migros and Giraffe restaurant chain to Boparan Restaurants Holdings Limited

Tesco to sell Kipa business in Turkey to Migros and Giraffe restaurant chain to Boparan Restaurants Holdings Limited

Tesco redirects millions of surplus food to charity with Community Food Connection with FareShare FoodCloud rollout

CHESHUNT, England, 2016-Mar-14 — /EPR Retail News/ — Tesco announces nationwide rollout of Community Food Connection with FareShare FoodCloud, which will redirect millions of meals of Tesco surplus food to charity by end of 2017.

Tesco CEO Dave Lewis has today announced the nationwide rollout of an initiative designed to dramatically reduce the amount of food that goes to waste.

The move follows through a farm to fork commitment by Tesco to tackle food waste from its suppliers, through its stores, and customers’ homes.

The groundbreaking nationwide scheme – Community Food Connection with FareShare FoodCloud – is being launched this week in 15 cities and regions across the UK including Manchester, Birmingham, Southampton and Portsmouth.

In the coming months the initiative will be rolled out to Leeds, Leicester, Kent and the West Midlands. Tesco has said it will reach all large Tesco stores – numbering over 800 – by the end of 2016, with all stores covered by the end of 2017.

Community Food Connection is powered by FareShare FoodCloud, an open platform that helps store colleagues and charities work together seamlessly.

Tesco also believes that once fully developed, other retailers could adopt FareShare FoodCloud to create an industry standard platform to make a real difference to local charities and communities.

According to Tesco, food waste is a global issue. Chief Executive, Dave Lewis was recently appointed chair of a coalition of leaders from government, businesses, international organisations, research institutions, and civil society called Champions 12.3. The Champions 12.3 coalition will work to create political, business and social momentum to reduce food loss and waste around the world.

Dave Lewis, Tesco CEO said:

“We believe no food that could be eaten should be wasted – that’s why we have committed that no surplus food should go to waste from our stores.

“We know it’s an issue our customers really care about, and wherever there’s surplus food at Tesco stores, we’re committed to donating it to local charities so we can help feed people in need.

“But we know the challenge is bigger than this and that’s why we’ve made a farm to fork commitment to reduce food waste upstream with our suppliers and in our own operations and downstream in our customers’ own homes.”

The scheme has already been piloted in fourteen Tesco stores over the past six months and has generated over 22 tonnes of food – the equivalent to 50,000 meals.

Tesco and FareShare are calling out for 5,000 charities and community groups to join up and receive free surplus food through the scheme, as part of a huge nationwide charity recruitment drive.

The scheme will be in place in all Tesco stores by the end of 2017, which means thousands of charities all over the country will benefit from millions of pounds worth of surplus food each year.

The latest figures show 55,400 tonnes of food were thrown away at Tesco stores and distribution centres in the UK last year, of which around 30,000 tonnes could otherwise have been eaten – equivalent to around 70 million meals.

Lindsay Boswell, FareShare CEO said:

“We are delighted to be offering our store level solution in partnership with Tesco who are demonstrating real leadership in tackling food surplus.

“FareShare FoodCloud is a natural extension of our work together which has already provided nine million meals to help feed vulnerable people.

“Our role as a trusted partner to the voluntary sector is really important to the charities and community groups we work with and we are excited to launch this new service with Tesco’s support.

Tesco remains the only UK retailer to publish transparent data about food waste from its own operations. The next set of food waste data will be published by Tesco in May.

For more information please contact the Tesco Press Office on 01707 918 701
We are a team of 480,000 in 11 markets dedicated to serving shoppers a little better every day.

Notes to Editors

About Community Food Connection with FareShare FoodCloud
Through Community Food Connection with FareShare FoodCloud, Tesco store managers alert charities and community groups to the amount of surplus food they have at the end of each day. The charity then confirms it wants the food, picks it up free of charge from the store and turns it into meals for people who need it.

Beneficiaries of the charities receiving food come from the wide range of charities supported by FareShare including homeless hostels, women’s refuges and breakfast clubs for disadvantaged children.

Organisations from across the UK can apply to join the scheme at www.fareshare.org.uk/fareshare-foodcloud

About the work Tesco has done to reduce food waste
Our goal at Tesco is to never throw away food that could be eaten: if we can’t sell it, we will offer it to charities and community groups to feed people in need. By 2017 we will roll out Community Food Connection to all of our UK stores.

Community Food Connection with FareShare FoodCloud is the latest innovation in Tesco’s work with FareShare on the provision of surplus food. The partnership has included activities which make food available from the Tesco supply chain, Distribution Centres and Dotcom centres. This has seen four and a half million meals of surplus food donated to support nearly 2,000 charities and community groups across the UK.

Tesco sees a shared responsibility when it comes to tackling food waste. It is working with its suppliers to cut food waste in the supply chain, and is helping customers to reduce the amount of food thrown away in their homes.

Tesco ended Buy One Get One Free offers on fruit and vegetables in the UK in April 2014.

Tesco has also launched a competition in partnership with WRAP and Innovate UK to find new ways of helping reduce the amount of good food that ends up in the bin at home. Entrepreneurs will be invited to present their ideas to Tesco, and the best ideas will be trialled by the retailer. Food waste has a huge impact on family finances with UK families estimated to throw around £700 worth of food away each year.

About Champions 12.3
Dave Lewis will be chairing a coalition of leaders from government, businesses, international organizations, research institutions, and civil society called Champions 12.3. This group will be dedicated to accelerating progress towards achieving the UN Sustainable Development Target 12.3 by 2030.

The UN Sustainable Development Goal 12 seeks to “ensure sustainable consumption and production patterns.” The third target under this goal (Target 12.3) calls for cutting in half per capita global food waste at the retail and consumer level, and reducing food losses along production and supply chains by 2030.

Tesco CEO Dave Lewis at CBI Conference – speech

CHESHUNT, England, 2015-11-12 — /EPR Retail News/ — Before I begin, I would like to pay tribute to John Cridland for his 33 years of service to the CBI.

Given that the CBI is celebrating its 50th birthday this year that means that John has been contributing to the organisation for nearly 70% of its entire existence. A remarkable contribution and one for which we should all be very grateful.

The fact that in the eyes of many investors and business leaders around the world “Britain does mean business” is a tribute to John’s work.

So thank you John – and also the best of luck to Carolyn as she moves into the hotseat, and to Paul as he starts as CBI President…

Now to serving Britain’s shoppers.

As you will no doubt be aware I am a new boy to retailing. Just over a year in and it’s been quite a year. Some have even called it a baptism of fire and there may be some truth in that.

What is true is that I join the industry at a very challenging time. Industry profitability has dropped significantly, and we are running through an unprecedented period of Food Deflation. Great news for customers but hard for a business trying to generate funds to invest and restore profitability.

So in the next 13 minutes what I want to do is share 3 things:

  • Share with you my insights into the retail industry.
  • Share with you just some of the challenges we face.
  • And finally share with you a little about what we think we need to do in order to respond to these challenges.

 

THIS IS A REMARKABLE INDUSTRY

Let me share a few facts:

  • We contribute over 5% of GDP.
  • We employ 3 million people.
  • Nearly 10% of the whole workforce is in retailing in one way or another.

So little wonder that we have been referred to as a nation of shopkeepers.

  • Within those figures, supermarkets alone employ 1m people.
  • With a further 900,000 in our supply chains.

Tesco alone employs around 310,000 here in the UK.

  • 54% of them women.
  • 70% in flexible employment.

And every year as an industry we pay somewhere in the region of £28bn in tax.

So it’s big – I think we all knew that – but what I didn’t appreciate was its contribution in other ways:

Social mobility….

  • Supermarket retailing helps rebalance the economy away from its epicentre.
  • 69% of stores and 72% of sales are outside the SE and London.
  • It’s more evenly spread geographically than financial services or manufacturing.

Training and development.…

  • 42% of 16/17 year olds work in retail. It’s a valuable first experience of working life.
  • Around 15% of all apprenticeships are in retail.
  • What’s more, each year the industry invests around 15 hundred pounds in training and developing every one of those people employed in the sector. The industry makes an important contribution to providing skills and development for a large portion of the active work force.

Community….

  • The industry contributes at every level…
  • At Tesco, we donate around 4% of pre-tax profits to charity.
  • We’ve provided 27.5 million meals to people in need.
  • And we have community projects in virtually every large store.
  • All proceeds from the Bag Charge – around £30 million – will go to local charities.
  • Whilst nationally we continue to support Diabetes UK and the British Heart Foundation through our National Charity Partnership, and Cancer Research through our sponsorship of Race for Life.

 

THE CHALLENGES WE FACE

Some of these are well documented:

1. The growth of digital.

Next year the global internet economy will be worth $4.2trillion. Delivering a revolution in connectivity, data sharing and analytics.

Increasingly the world is mobile first.

  • Major online retailers report more than half of their UK transactions are completed on a smart device.
  • In the UK, digital retailing has doubled over the last five years to become a £10bn business.

As a business, we expect continued growth…the challenge for us is how to make our online business of tomorrow as profitable as our offline business yesterday.

But as a nation there are significant challenges too.

Digital operations have no real community footprint…far fewer employees…and a far lower tax contribution.

That should be a dilemma for the Exchequer. Without rebalancing to reflect digital business models the physical side of retail pays a higher and higher proportion of the total tax bill.

Furthermore it will incentivise a swifter shift to infrastructure light, low employment business with little interaction with communities.

 

2. Back in the physical world, the growth of limited range retailers and a growth in convenience shopping have both affected profitability and growth.

  • Limited range retailers have doubled since 2010.
  • That’s now a 13 billion pound market opportunity.

Shopper habits have changed during recession. Basket sizes have reduced.  Weekly shops have split into multiple shopping occasions.

  • The convenience channel is therefore growing; it’s up 5% again this year.
  • Our big stores are also seeing a high proportion of convenience shopping trips – 76% of Tesco convenience trips take place in our Extras or Superstores.

But I don’t see this as a challenge per se – I see it as a shift in what customers want or need – and it’s our job to respond.

What I do see as a challenge is that whilst the customer was heading in one direction the industry was heading in the other…between 2007 and 2014 it added around 35msq ft…

The market didn’t grow. Inevitably it couldn’t go on…and in January this year we called a halt.

It was painful – colleagues and communities were affected as we closed stores and decided to halt construction on others. I suspect however that our competitors were relieved…because their announcements followed in pretty short order.

But it isn’t just the big 4.

More independent shops were closed than opened in the first six months of this year.

As the first CEO in Tesco’s history to be criticised for not opening a shop or for closing some existing stores I can tell you that this trend you are seeing is no longer down to us.

 

3. Which brings me on to the real challenge for our industry…the addition of more structural cost at a time of historically low profitability.

I’ve spoken already about Deflation.

  • Two years ago food inflation was running at 4%.
  • Now it’s minus 2.4%.
  • Great news for the customer but definitely a very significant pressure in parts of the retail industry.

In supermarkets profitability has sunk from 5% to 2% in five years and now we face significant new cost pressure.

This is a potentially lethal cocktail…

Business rates

It’s complex – only the most dogged commentators follow it. But let me spell out the simple truth:

  • Over last five years property values have fallen, profits are down but business rates are up. Quietly but dramatically.
  • Business rates have hit £8bn for retail. That’s over a quarter of the bill and significantly more than any other sector.
  • That’s an enormous pressure. Shops have closed. Businesses lost. Jobs sacrificed.

Our own business rates bill has increased by well over 35% in the last 5 years. It’s the biggest tax we pay and it is now three times OECD average.

For every £1 we pay in corporation tax large UK retailers pay £2.31 in rates.

It’s unsustainable and needs urgent reform.

No doubt you’re all familiar with the National Living Wage.

Now the debate around pay is really important – our colleagues are the greatest asset we have. Their quality, unrelenting commitment and passion for doing the right thing are at the heart of our business turnaround.

Notwithstanding the challenge we face this year, at Tesco we have a good history of paying well – and we were supportive of the Living Wage when it was announced. Our pay and benefits package is already significantly above the new voluntary Living Wage rate.

If you monetise benefits – for the sake of argument, for our colleagues outside London – we are already at £8.80 today.

Our concern, and the concern of many colleagues, is that there is pressure to increase base pay at the expense of benefits. We don’t think this is the answer.

We shouldn’t simply strip down employment to an hourly rate or draw arbitrary lines. It’s more complex than that. Benefits are hugely important to our colleagues. Valuable too. Our workforce is not homogenous.

Our colleagues say they value different things at different stages in their lives and at Tesco this is what we are trying to accommodate.

We need a fuller debate aimed at doing the right thing for the people in our industry without imposing more cost without providing individual benefit or business return.

At Tesco, we’re working on a menu of benefits which gives colleagues flexibility of choice and support which they value – including a competitive pension scheme, a 5% turnaround bonus, colleague discount, plus the opportunity to invest in the business through Save as You Earn.

And as an industry there is a worry that the unintended consequences of the living wage have not been fully thought through.

 

HOW SHOULD WE RESPOND

At Tesco, we face these industry problems and some others of our own making. When challenged by this economic reality, we inflicted damage on our business in pursuit of maintaining a level of profitability which was unsustainable given the environment in which we were operating.

What have we done is we have tried to take stock, to consult with key stakeholders openly, to use our ears not our mouths, we have sought to seek collaboration in addressing the challenges and opportunities that we face and we are looking to co-operate with partners as we chart our course in the journey to turning our business around.

It’ll take time but we will build on collaboration. Finding common goals rather than imposing unilateral decisions.

And I suppose that is where I’d aspire to get to with Government.

I’d like to find a way to be constructive and open minded on all sides. Based on more consultation, collaboration and co-operation.

Getting this right has huge consequences for the retail industry but also for the wider economy, for social mobility, geographical balance, training and for employment more broadly.

I believe government needs to be careful and strategic on regulation and taxation. Recognising changing dynamics. Taking account of those new realities. Consulting to iron out unintended consequences. With the ultimate prize: more stable, sustainable growth and a better deal for taxpayers.

The challenges I described earlier create an opportunity and an imperative for Government and business….to share knowledge, innovation and risk in tackling some of the most pressing issues we face as a country…

…but it requires collaboration as well as tax collection.

I have always been an optimist, whilst there are significant challenges I also see real opportunities.

If we can meet in the middle ground…we can solve problems together.

We can forge partnerships which drive progress on health, training, skills. Create economic growth while protecting families and the communities where they live. Achieve sensible regulation…and a new balance of taxation and incentives.

But, if we can’t consult effectively…or find better ways of working together, I fear that it’s communities all over Britain that will suffer.

I’d like to see the retail industry and our business working closely with government on three things:

Firstly, I would encourage the industry and Government to sit down at the highest level and consult on the multiple policy changes that are affecting the industry, to share together the consequences of higher rates, the living wage and initiatives such as the apprenticeship levy. The British Retail Consortium is already attempting to do this but it takes two to tango.

 

Secondly, I’d like us to be able to innovate together on tough employment, skills and training challenges.

The opportunity for Government is to enable us to continue offering personal mobility through training, development and progression…we can do the heavy lifting from no skills to some skills.

To continue offering crucial flexibility to enable mums and older workers to return to work…in large numbers.

Let’s not constrain ourselves after a decade of progress creating 5000 jobs for the long term unemployed in locations from Corby to Woolwich through our Regeneration Partnership scheme. Or to choke the progress that created 9,500 apprenticeships between 2012 and 2014.

Employers like us can be innovators on tough agendas – sharing the burden of Government priorities.

But a balance has to be struck between allowing investment for growth and collecting taxes through mechanisms like the apprenticeship levy which wipes out the equivalent of our whole training budget.

 

The third area where I can see real potential for partnership and innovation is on health and food education.

We estimate that our work together on reducing salt has saved around 1,500 lives. Proof that when industry and government work together we can make a real difference.

Millions of Britain’s shoppers are weekly Tesco customers.  We have more than 40m transactions a week.

And when we reformulate, we can remove billions of calories from their shopping trips.

In soft drinks our action has removed sugar, we have re-organised aisles and increased low/no calorie options.  Four years on the average customer is now buying 20% less sugar in soft drinks.

This year we removed sweets, fizzy drinks and fried crisps from checkouts in smaller stores.

This month the one millionth child embarked on a farm to fork trail to improve basic understanding of food.

  • That’s 179 farms and factories involved.
  • 787 stores in 787 communities.

We make large scale contributions to heart health, cancer research and the fight against diabetes.

This year, as you can probably tell, we are also supporting Movember.

These are just some of our health initiatives. There are many more. As a founding signatory of the Public Health Responsibility Deal we have signed 27 pledges covering food, alcohol, physical activity and health at work.

Direct action on agendas shared with government. Delivering outcomes that Government struggles to deliver. At scale.

I want to partner and innovate more on health. Not because I want to burnish Tesco’s image but because two thirds of supermarket shoppers want me to. Because it is about Tesco serving Britain’s shoppers a little better every day.

That’s why we want to be able to increase our social and economic contribution across employment, employability, training and skills development.

Because we believe it is good for colleagues, customers and the communities where they live.

That’s why we want to increase our social and economic contribution through health initiatives.

We are uniquely placed to nudge millions of people every week towards healthier choices.

Our customers want it and the government can benefit greatly from it… if we can meet in the middle ground.

Nurturing growth – social value alongside economic value – in an era of extraordinary change needs a new level of collaboration.

A new way:

  • With our colleagues inside the business.
  • With our suppliers.
  • Between business and Government.
  • Based on mutual benefit and shared risk – incentivised investment in ideas and action.
  • All within a re-balanced, growth-minded tax framework which is mindful of unintended consequences…and actually reflects very real pressures on businesses right now as they navigate unprecedented change.

A new way of working for a rapidly changing world.

A new way to solve more of the problems people want us to solve, more quickly and at lower cost to taxpayers.

That’s good for business. Good for Government. And, given the wider economic importance of retail, good for people in Britain as a whole.

Thank you.

SOURCE: Tesco

Tesco to sell 14 Spenhill development sites across London, the South East and Bath to Meyer Bergman advised fund and clients

CHESHUNT, England, 2015-10-16 — /EPR Retail News/ — Tesco has agreed the sale of fourteen Spenhill development sites across London, the South East and Bath, to a fund and clients advised by Meyer Bergman. The transaction, worth £250m, is for sites suitable for mixed-use and residential development and marks further progress against Tesco’s strategic priority of protecting and strengthening its balance sheet.

Tesco and Meyer Bergman, the pan-European real estate investment manager, have reached completion on eleven sites, with the remaining sites due to complete in due course.

Dave Lewis, Chief Executive said:

“Since announcing our decision to build fewer stores we have been working with Meyer Bergman to bring forward investment on our Spenhill sites. We are very pleased to have agreed a deal with Meyer Bergman that will bring forward significant investment for these local communities, including opportunities for residential development.

We will be working with Meyer Bergman and local Councils in the coming weeks to complete a formal handover and look forward to the delivery of investment on these sites.”

Markus Meijer, CEO at Meyer Bergman, said:

”We see this investment as an opportunity to give new impetus to the Spenhill projects, to make Tesco’s place-making ambitions for the sites happen and to make an enduring contribution to local communities.

Backed by long-term and prudent global institutional capital, Meyer Bergman has a wealth of experience and expertise in the development and asset management of mixed-use properties. We look forward to engaging with local stakeholders so that immediately we can start moving the various Spenhill projects forward.”

-Ends-

About Meyer Bergman:
Meyer Bergman is a privately held real estate investment management firm. It advises three closed-ended, value-add real estate funds with a total of approximately €3 billion of assets on behalf of global institutional investors. The firm is headquartered in London.

For more information please contact the Tesco Press Office on 01992 644645

Tesco to simplify business model for suppliers by standardising their payment terms

CHESHUNT, England, 2015-10-8 — /EPR Retail News/ —Tesco has pledged to deliver a simpler business model for suppliers, by standardising their payment terms.

In a move which builds on progress already made to simplify and increase transparency across its business, Tesco aims to improve innovation for shoppers by encouraging collaboration between the retailer and its supply base.

Tesco will no longer use a combination of complex and varied terms and will instead introduce a new standard approach which will offer specific concessions to help small and medium-sized businesses. The move will allow suppliers to focus on the things that matter for customers.

Smaller suppliers, who deliver up to £100,000 worth of products in a year, will be paid within 14 days. Whilst medium-sized suppliers who deliver up to £10 million in product value per year, will have their accounts settled five days quicker than larger suppliers in their category.

Speaking today at the IGD Conference, Tesco’s Chief Executive Officer Dave Lewis said:

‘One of the things that made Tesco great was the little things we did to help our customers. We want to work with our suppliers to get back to innovating on behalf of our customers and these changes will make it easier for us to do that. Our customers want value, great availability and new choices. If we think about that from one end of the supply chain to the other we can collaborate with suppliers on ideas and grow together. That’s good for customers. Good for suppliers. And good for Tesco.

‘To help with this process, we’re announcing the standardisation of our payment terms.

‘By introducing a new standardised policy across each category for our larger suppliers, and shorter payment terms for our small and medium suppliers, it will help us to deliver a fairer, more transparent and consistent approach across our supply-base.’

Standardisation means that in the majority of categories, Tesco will be offering shorter payment terms to its suppliers than they in turn pass onto their own suppliers. The smallest suppliers will typically be paid 34 days quicker than before. For all partners, the terms refer to the day when they will receive cash and not the day the payment is sent for processing. All changes will be in place by the end of June 2016, to enable suppliers to build plans into their annual financial planning cycle. Tesco will make no financial gain from this and in some cases this will mean additional short term investments to improve cash flow right across the supply chain.

Click here to see a table showing the number of payment days by category for small, medium and larger suppliers.

Tesco is also introducing a new Vendor Payment scheme, which offers no financial incentive to the retailer, but provides a fair and consistent deal for all suppliers, regardless of their size.

Over the last year, Tesco has simplified its business and relationships with suppliers‎, introducing a number of measures to improve engagement including:

  • Creating a single Product team responsible for the entire lifecycle of a product, committed to our new code of conduct
  • Adopting a transparent, long term cost-based buying model with consistent and fair standard payment terms that help grow its joint business with suppliers
  • Moving to reduce the number of ways it takes commercial income from 24 to 5
  • Launching a Supplier Helpline, where any issues raised by suppliers are aimed to be resolved within 48 hours
  • Providing support for UK agriculture, with the development of a joint initiative with Anglia Famers – the ProducerClub.  The club delivers support for the day-to-day running of farms and an unrivalled combination of savings and benefits

 

Ends

Notes to Editors

  • Tesco is writing to suppliers to inform them of the changes.
  • Changes to payment terms will affect all suppliers who serve the UK and will be implemented by the end of June 2016.
  • Examples of Tesco’s new standardised payments for key categories:
    • Meat, fish and poultry- Tesco’s new 28 day standard terms, shortened to 23 days for £100k-£10m businesses. This is significantly shorter than the average 46-49 days it takes for suppliers to pay those further down the supply chain.
    • Grocery – Tesco’s 45 day terms, shortened to 40 days for £100k-£10m businesses. This is significantly shorter than the average 60 days it takes for suppliers to pay those further down the supply chain.
  • Overseas suppliers who we source clothing and general merchandise products from will be on 90 day payment terms. This is the industry norm and will primarily be products that we source from Asia and spend a significant amount of time being shipped to the UK.
  • The ProducerClub is a joint initiative between Anglia Farmers and Tesco, which will provide purchasing support for the day-to-day running of farms and a package of savings and benefits. For more information go to www.tescosuppliernetwork.com/producerclub.html
  • Tesco’s Chief Executive Dave Lewis was speaking at the IGD The Big Debate Conference in London on Tuesday 6th October.

 

For more information please contact the Tesco Press Office on 01992 644645
We are a team of over 500,000 people in 12 markets dedicated to providing the most compelling offer to our customers.

Tesco begins new program to give unsold food to charities and not to waste

  • Brand new scheme called FareShare FoodCloud to be piloted in Tesco stores to give unsold food to charities and not to waste
  • New figures reveal 55,400 tonnes of food wasted within Tesco operations in the last year, around 30,000 tonnes of which could otherwise have been eaten

Cheshunt, England, 2015-6-8 — /EPR Retail News/ — A groundbreaking new scheme has been launched to redistribute surplus food from Tesco stores to people in need.

Tesco has partnered with UK food redistribution charity FareShare and Irish social enterprise FoodCloud to trial the FareShare FoodCloud app in the UK. Tesco has already been working in different areas of the supply chain to tackle food waste – including through its existing partnership with FareShare – and this new scheme will mean eliminating the need to throw away food in Tesco stores that could otherwise be eaten.

Using the FareShare FoodCloud app, Tesco store managers will alert charities to the amount of surplus food they have at the end of each day. The charity then confirms it wants the food, picks it up free of charge from the store and turns it into meals for those in need. Beneficiaries will come from the wide range of charities FareShare works with including homeless hostels, women’s refuges and breakfast clubs for disadvantaged children.

FoodCloud is supplying its technology and expertise developed from its scheme in Ireland, while FareShare brings its knowledge of the UK charity redistribution market and its experience of providing food to an increasing network of frontline organisations that offer hot meals and other support for people in food poverty. All charities will be supported by FareShare to ensure they are using this surplus food safely.

The scheme is already in place at Tesco stores in Ireland, and will now be piloted in ten Tesco stores around the UK.

New figures recently published reveal 55,400 tonnes of food was thrown away at Tesco stores and distribution centres in the UK over the past year, of which around 30,000 tonnes could otherwise have been eaten.

Tesco is committed to ensuring the upfront work they do to make the scheme effective across their own stores is shared with other retailers and food companies.

Dave Lewis, Tesco CEO said:

“No one wants to throw away food which could otherwise be eaten.

“We don’t throw away much food in our own operations but even the 1% we do throw away amounts to 55,400 tonnes.

“To reduce this amount even further, we’ll be working in partnership with FareShare FoodCloud to ensure any food left unsold in our stores at the end of each day is given to local charities.

“This is potentially the biggest single step we’ve taken to cut food waste, and we hope it marks the start of eliminating the need to throw away edible food in our stores.”

Lindsay Boswell, FareShare CEO said:

“FareShare already has a long standing partnership with Tesco and the development of the FareShare FoodCloud is a natural evolution of this.

“We understand that customers get angry when they see food being wasted in their local store. We do too and that is why we have spent 20 years developing our successful charity redistribution model.

“Our partnership with Tesco means we are already able to access surplus food from their supply chain, Distribution Centres and dotcoms.”

Tesco is the only supermarket to publish its own independently assessed food waste data. The latest publication showed that the amount of food thrown away had dipped from 56,580 tonnes in 2013/14 to 55,400 tonnes in 2014/15.The food most commonly thrown away in Tesco stores is from the bakery, followed by fresh fruit and vegetables and convenience items like pre-packaged sandwiches and salads.

Iseult Ward, Co-founder of FoodCloud said:

“FoodCloud has already been successful in connecting food outlets with charities in Ireland through our unique technological solution for surplus food redistribution.

“Our work in Ireland means that over 300 charities have already benefited from using the platform. It has helped us create a robust model that we have translated for the UK market.

“We are delighted to be working in partnership with both FareShare and Tesco so that we can bring our solution in to the UK to ensure that more charities can benefit. We are looking forward to the developments that will come about as a result of this trial.”

FareShare FoodCloud is the latest innovation in Tesco’s work with FareShare on the provision of surplus food. The partnership spans over three years and has included activities which make food available from the Tesco supply chain, Distribution Centres and Dotcom centres. This has seen four and a half million meals of surplus food donated to support nearly 2,000 charities and community groups across the UK.

Across the food supply chain, around 1% of food waste occurs within supermarket operations. The rest is thrown away earlier in the chain – in suppliers’ fields and factories – or in customers’ own homes.

Tesco sees a shared responsibility when it comes to tackling food waste. It is working with its suppliers to cut food waste in the supply chain, and is helping customers to reduce the amount of food thrown away in their homes. Tesco ended Buy One Get One Free offers on fruit and vegetables in the UK in April 2014. Tesco has also worked with the Waste & Resources Action Programme (WRAP) to include ‘Love Food Hate Waste’ hints and tips on the packaging of a number of fruit and vegetable products on sale.

Notes to editors

  • We want to do everything we can to make sure as much surplus food as possible goes to people who really need it. If this isn’t possible, food waste is recycled and used to feed farm animals or used for biofuels.

About FareShare FoodCloud:

  • Charities and community groups can register their interest at: www.fareshare.org.uk/fareshare-foodcloud
  • If you are already a charity receiving food directly from a store then this will not affect your ability to continue picking this up.

About FareShare:

  • FareShare is a unique charity fighting hunger and its underlying causes by  providing food to more than 1,923 local charities and community organisations across the UK, including homeless shelters, children’s breakfast clubs, women’s refuge centres and luncheon clubs for the older people, helping  to feed 149,000 people every week
  • By working in partnership with the food industry, FareShare received 7,360 tonnes of food last year. The majority of this was surplus and would otherwise have gone to waste. This was mainly fresh produce, such as fruit, vegetables and meat
  • Last year FareShare redistributed enough food for 15.3 million meals, saving each charity an average of £13,000 a year
  • FareShare’s member charities prepare and serve the food onsite, offering their beneficiaries a hot, nutritious meal when they may otherwise go without

About FoodCloud:

  • FoodCloud, an innovative social enterprise founded by social entrepreneurs Iseult Ward and Aoibheann O’Brien, connects businesses that have surplus food to charities in their community that need it, through their technology platform and app.
  • In the last 12 months FoodCloud have signed up over 100 stores and 300 charities across Ireland, redistributing 431 tonnes of food, the equivalent of almost 1 million meals to charities and community groups.
  • The unique solution developed by FoodCloud for store level surplus food is one of the first in Europe and has been successfully launched with Tesco Ireland on a national scale.
  • Within communities food businesses frequently experience food surpluses, while charities struggle to provide food for those who need it most. FoodCloud provides an opportunity for businesses and charities within communities to work together to solve the social and environmental impact associated with food waste and food poverty.

For more information please contact the Tesco Press Office on 01992 644645
We are a team of over 500,000 people in 12 markets dedicated to providing the most compelling offer to our customers.

Tesco regains sole ownership of 21 superstores in a transaction with British Land

Cheshunt, England, 2015-3-23 — /EPR Retail News/ — Tesco has regained sole ownership of 21 superstores in a transaction with British Land.  The agreement comes as Tesco continues to strengthen its core UK business.

The 21 superstores and associated debt were part of a joint venture between Tesco and British Land and were all subject to RPI-indexed rent increases.

In exchange for the superstores, British Land will take over Tesco’s stake in three shopping centres, three retail parks and three standalone stores which are held in two joint ventures between the two companies.  Tesco will continue to lease the stores at these sites at market rents which are not subject to RPI-indexed increases.

As part of the transaction, Tesco will also receive £96m from British Land.

Dave Lewis, Tesco CEO, said:

“Last year we identified the opportunity to increase the proportion of our stores we own as freehold. This transaction with British Land allows us to increase our ownership and thereby insulate more of our businesses from indexed rent reviews. We have a long way to go but it’s a transaction which takes us in the right direction. This agreement makes our business simpler and stronger.”

For more information please contact the Tesco Press Office on
01992 644645

We are a team of over 500,000 people in 12 markets dedicated to providing the most compelling offer to our customers.

Tesco releases its trading update

Cheshunt, England, 2014-12-9 — /EPR Retail News/ — In recent weeks we have implemented new policies and procedures which will govern our commercial income activities and taken actions to invest in and improve our customer offer.

In our interim results on 23 October we highlighted that full year profitability would be impacted by actions we may choose to take and that the commercial income overstatement would affect second half results as we revisited our plans with the new management team

Our new Commercial approach will underpin stronger long-term relationships with our suppliers, benefiting customers, whilst at the same time ensuring that revenue recognition is transparent and appropriate.  We have retrained our entire team and begun the cascade with our suppliers.

In addition, we have invested further in service, with more than 6,000 new colleagues in store, increased product availability on key lines and invested in price – all aimed at enhancing our customer offer.  The early feedback from customers is encouraging.

On the 8th January we will share more detail about the measures we plan to take to improve the competitiveness of the UK customer offer and to strengthen the balance sheet.  On the basis of the changes and investments made to date we now anticipate group trading profit for the financial year ending February 2015 will not exceed £1.4billion.

Dave Lewis, CEO said:

“Tesco is focused, and will continue to focus, on doing the right thing for customers.  This means running our business in a way that everything we do creates sustainable value.  Whilst the steps we are taking to achieve this are impacting short-term profitability, they are essential to restoring the health of our business.  We will not engage in short term actions that compromise in any way our offer for customers.

We still have much to do but are making good progress in developing our plans to improve the long-term positioning of the Group and I will share more of that on the 8th January.  Our priorities remain restoring competitiveness in the UK, protecting and strengthening the balance sheet and rebuilding trust and transparency.  For now, all the Tesco team is focused on delivering the best Christmas for customers.”

 

Contacts

Investor Relations:
Chris Griffith              01992 644 800

Media:
Tom Hoskin              01992 644 645
Brunswick                 0207 404 5959