Earning the loyalty of our customers, and then keeping it, has made a vital contribution to our performance. Everything we do is aimed at encouraging our customers, new and old, to stay with us and to maintain their loyalty. This is achieved through our First Class Service, the quality and choice of our products, our store formats and Unbeatable Value. Zeb Davies, General Assistant, Rickmansworth, with Mr and Mrs Jonathan Olliffe and son Henry With Clubcard we can now thank our customers for shopping with us. Since its launch two years ago, Clubcard membership has grown to over 9.5 million and in the year customers have received over £250m in money-off coupons and product specific vouchers. We now have in place highly sophisticated computer systems with which we are able to analyse the information we receive through Clubcard. This can be analysed on a regional level, by store, by product line or by specific customer type. This information has enabled us to target our promotions and offers directly to customers, as well as introducing initiatives and services relevant to their needs. A good example of this is Baby Club launched in January 1997. Mothers-to-be can join the Baby Club and receive special offers, information and advice at a time when their budgets are tighter. In the first 12 weeks, over 200,000 mothers-to-be have joined the club and as a result, a further 50,000 Clubcards have been issued. A further step forward was made in June 1996 with the launch of Clubcard Plus, an innovation which made Tesco one of the first British supermarket groups to move into financial services. Grant Harrison, Head of Clubcard, Head Office Clubcard Plus evolved as a response to customer demand - customers wanted to use their Clubcard to pay for their shopping in order to help them budget, plus they wanted their money to earn interest. We also extended our offer to include an overdraft facility at competitive rates, for those who qualify. In February 1997, we announced the link-up with the Royal Bank of Scotland to form a joint venture company which will offer customers a broad range of financial services. This venture, called Tesco Personal Finance, also involving Direct Line and Scottish Widows, will combine the best of direct financial services with a local presence in Tesco stores. Simon Pickett, Customer Service Manager, Leatherhead. Additional Information Chairman's statement Financial review