<![CDATA[
<HTML>
<HEAD>
<TITLE>Tesco Annual Report and Accounts 1996</TITLE>
<BODY bgcolor="#FFFFFF" TEXT="#000000" LINK="#0000FF" VLINK="#FF0000" ALINK="#00FF00">
<p align=center>
<TABLE>
<TR>
<TD>
<A HREF="/../../default.htm"><IMG SRC="images/but1.gif" width=72 height=24 border=0 ALT="Tesco Homepage"></A><A HREF="page1.html"><IMG SRC="images/but2.gif" width=73 height=24 border=0 ALT="Corporate Strategy"></A><A HREF="page1b.html"><IMG SRC="images/but3.gif" width=73 height=24 border=0 ALT="Financial Highlights"></A><A HREF="page2.html"><IMG SRC="images/but4.gif" width=73 height=24 border=0 ALT="Chairman's statement"></A><A HREF="page6.html"><IMG SRC="images/but5.gif" width=73 height=24 border=0 ALT="Business Review"></A><A HREF="page20.html"><IMG SRC="images/but6.gif" width=73 height=24 border=0 ALT="Board of Directors"></A><A HREF="page22.html"><IMG SRC="images/but7.gif" width=73 height=24 border=0 ALT="Financial Review"></A><A HREF="page27.html"><IMG SRC="images/but8.gif" width=74 height=24 border=0 ALT="Accounts"></A>
</TD></TR>
<TR>
<TD align=center>
<IMG SRC="images/16a.gif" width=585 height=110 ALT="Store format">
</TD>
</TR>
</table>
<p>
<IMG SRC="images/title.gif" width=104 height=19 align=right ALT="Tesco PLC">
<IMG SRC="images/16b.gif" width=124 height=19 ALT="Store format">
<br>
<br>
Tesco stores are designed to meet the needs of customers and to reflect and enhance
their local surroundings. Each represents a substantial investment in the local
community and we are careful to choose designs which blend easily into the area.
<p>
Four store formats give us the flexibility to respond to customers, wherever
they live or work.
<p>
Superstores, offering the widest range of products and services, continue
to be extremely popular, and this year Tesco opened ten more. In Winchester, the
site was designed around mature trees, to help the store fit sympathetically into
the landscape. Many stores now have a glass frontage, increasing the amount of
natural light and creating an open, airy and inviting appearance.
<p>
Smaller compact stores continue to offer customers the largest range of
high quality goods in their neighbourhoods.The new store at Midsomer Norton
- one of eleven compact stores opened this year - features a glass skylight running
the length of the store, with large, painted banners depicting local scenes.
<p>
Metro stores, bringing Tesco quality into the High Street, have opened
in Andover and Richmond.
<p>
Eight Express stores, offering a carefully chosen range of Tesco products on
a petrol forecourt, are now serving their local communities.
<p>
To supply four store formats efficiently can be achieved only through
a highly advanced supply chain. Improvements in distribution continue, and
a reduction in store stockholding during the year has enabled us to increase
sales space in 14 stores by utilising floorspace previously used for storage.
<p>
For additional information on Store format:
<br><A HREF="page2.html#storedev">Chairman's statement - Store development programme</A>
<br><A HREF="page22.html#store">Financial review - Store development and capital expenditure</A>
<br><A HREF="page62.html">Store locations</A>
<br>
<br>
<br>
<p align=center>
<a href="page14.html">[Previous Report page]</a><a href="page18.html">[Next Report page]</a>
<HR width=75%>
<p align=center>
<a href="/../../default.htm">[Tesco Homepage]</a><a href="index.html">[Annual Report Homepage]</a><a href="page1.html">[Corporate Strategy]</a><a href="page1b.html">[Financial Highlights]</a><br><a href="page2.html">[Chairman's Statement]</a><a href="page6.html">[Business Review]</a><a href="page20.html">[Board of Directors]</a><a href="page22.html">[Financial Review]</a><a href="page27.html">[Accounts]</a>
</body>
]]>