Tesco in Central & Eastern Europe Diversification to fuel growth By David Gray Retail Analyst Planet Retail Ltd | December 2011 Tesco in Central & Eastern Europe David Gray Retail Analyst David.Gray@planetretail.net Planet Retail had the unique opportunity to visit four Tesco stores in Poland across all formats – hypermarket, compact hypermarket and supermarket as well as Tesco’s first self checkout-only store in Central and Eastern Europe (CEE). The following slides give an overview of the key trends in CEE/Poland alongside findings from the store tours. 2 All images ©Planet Retail Ltd unless otherwise stated. Contents 1. Tesco CEE strategy 2. Poland market overview 3. Roll out of key strategic initiatives 3 Tesco CEE Strategy 4 1 Tesco CEE strategy Tesco is forecast to add more than EUR3 billion in sales and 350+ stores to its CEE operations over the next five years. Tesco CEE: Sales & Store Growth, 2011e-2016f 12 1,600 Banner Sales Store Numbers 1,400 1,200 10 Banner Sales (EUR bn) 1,000 8 800 6 600 4 400 2 200 0 0 2011e Note: e - estimate; f - forecast, Source: Planet Retail 5 2012f 2013f 2014f 2015f 2016f Store Numbers 14