Group CEO Philip Clarke has reiterated his commitment to building Tesco’s global business by creating “highly valued brands”, in the supermarket’s annual report.
In the report he says: “By building strong brands through our own products, we offer customers increased value, choice and quality. Customers trust our brands. They are loyal to our brands because they know what to expect from them and what they stand for.”
The report also revealed that Both Tesco Finest and Tesco Value brands are each worth more than £1bn in annual sales.
Clarke also asserts that its brand portfolio provides a “key point of differentiation from our competitors” and adds credibility to Tesco’s moves into new service areas such as banking.
Since taking over from Sir Terry Leahy as Group CEO in March Clarke has taken steps to strengthen the supermarket’s senior management team and recently outlined his seven point strategic vision for the chain.
The annual report also revealed that Clarke, who took over and Richard Brasher, UK CEO both earned £825,000 in the year, a total of £2.26m including bonuses and shares. Both represent a decrease from last year.
During the year, Tesco group sales increased 8.1% to £67.6 billion and pre-tax profit increased 11.3% to £3,535m.