Strategy

Our strategic objective is to build a business which is more than a supermarket — simpler, quicker, more personal and convenient for the customer; more productive and informative for suppliers; and ultimately more valuable for investors. In order to achieve this we seek to create a virtuous cycle of growth and long-term profitability.

Growth results from increasing the active pool of valuable customers — attracting new shoppers, retaining more of these customers on a long-term basis, and encouraging customers to spend more with us.

Consumers are strongly influenced by the attractiveness of the proposition we present to them. Therefore, we continually seek to improve the attractiveness of our retail offer — taking our service and usability to ever higher industry levels, offering a wide and relevant range of fresh, quality products which are keenly priced and offer good value for money.

Our strategy for driving long-term profitability is to operate with industry leading service at the lowest possible cost. We seek to achieve this through the business model that we adopt, and by optimising operational efficiency in each part of our business. We use automation and technology where there is an efficiency or cost benefit from doing so.

As demand grows, we ensure we have the right assets and sufficient capacity in order to service our increasing numbers of customers and their requirements.

Technology is at the core of our business. We develop and utilise proprietary intellectual property and technology throughout our business to improve efficiency and operations, and to provide market leading user interfaces and applications for our customers. We will continue to leverage our technology expertise to add value to our business, both in direct operations and through monetising this proprietary IP knowledge.

Driving Growth Developing the proposition to customers
  • Service — Deliver highest standards of on-time delivery, accuracy and improved ease of use
  • Price — Improve customer confidence in pricing, with relevant promotions and price matching guarantees
  • Range — Extensive choice in both food and non-food, with products our customers want and with superior freshness
. . . to grow customer numbers and spend
  • New customers — Attract more loyal customers
  • Existing customers — Improve customer retention levels
Delivering Profitability Optimising operations
  • Deploy cost efficient fulfilment automation
  • Continually improve operating systems and optimisations
Building capacity and leveraging scale
  • Open new Customer Fulfilment Centre (CFC2) to more than double capacity
  • Strengthen non-food infrastructure
  • Leverage scale to improve margin, delivery efficiency, administration and fixed cost allocation
Monetising knowledge Developing market leading intellectual property and technology
  • Monetising value from this proprietary technology platform

Proprietary technology forms the foundation of our business operating our end-to-end solution for grocery retail