Magazine: Tesco is committed to its customers, suppliers and employees

We evaluated the year 2011 with Tesco Hungary CEO Gerry Gray. Mr Gray told our magazine that in 2011 about 300 people became members of the Tesco team. What is more, while in June 500 disabled people were employed by Tesco, by the end of the year their number grew to 1,200. Tesco is not only a big and well-known brand in Hungary but a very reliable one as well. Hypermarkets, supermarkets, Expressz and Extra stores, financial and mobile services all contribute to Tesco’s good reputation. Mr Gray told that as a result of Supplier Forums in 2011, 300 products were enlisted on a regional level by Tesco stores. Many of the suppliers were enlisted nationwide and even appeared with their products in Tesco stores of neighbouring countries and in the United Kingdom (e.g. Pick salamis, Bull’s Blood wines of Eger). The long-term goal of this programme is to turn Tesco Hungary into a net exporter. In 2012 they plan to export Hungarian products in the value of HUF 50 billion and the company even developed a supporting system – with help from banks and the government – to develop the production capacity of farmers. Tesco stores only sell Hungarian poultry meat and in 2012 they are going to phase out the selling of foreign pork as well. According to the CEO, in 2012 the company is going to continue maintaining and developing the level of service by hypermarkets, but the focus will be on expanding the Expressz format. The hindrances to this are less investable capital (because of the ‘crisis tax’) and not having enough stores of adequate size at the right locations. Luckily, Tesco’s experts have already come across similar problems in other parts of the world, so they have recourse to a number of international ‘best practices’ to do away with the obstacles of local growth. As part of its multi-channel strategy, Tesco is expanding the number of services offered, a full list of which can be found on their website and Facebook page. Their next step is going to be the launch of a virtual mobile phone service provider, Tesco Mobile. Gerry Gray spoke about how the growing number of ClubCard holders gives them useful information about many things, for instance the efficiency of promotions. They fine-tuned the forecast system and made progress in some aspects of on-shelf availability. As for the Christmas shopping season, economic recession did not hold back consumers from spending as sales surpassed last year’s level. In January 2012 Tesco motivates shoppers with offering a 27-percent reduction on several hundred products – paying the elevated VAT instead of their customers. It is noteworthy that this promotion could not have been realised without cooperating with suppliers. Mr Gray’s credo is what is good for the community is good for Tesco. This is why he initiated the ‘100 years of volunteer work in 1 year’ programme. In 2011 Tesco employees did 2,800 hours of volunteer work and for 2012 they plan much more. Last year they supported the Hungarian Interchurch Aid with HUF 40 million and their new initiative is the ‘Our school, our Tesco’ programme, which urges local communities to support local schools via buying in Tesco. The programme started in Mohács and is expected to go nationwide in 2012.