Expansion in France has been difficult due to strict planning regulations. However, we continue to grow organically where we can and are looking to improve our present offer to customers. Since acquisition, Catteau has improved sales by over 50% and increased the average size of stores. We now have 103 stores in France, with seven hypermarkets. Over 30% of our turnover comes from these stores, demonstrating to us the success of large stores in these markets.
Nemethne Krisztina, Customer Information Assistant, Hungary
Our first move into Central Europe was Hungary in 1994. During the last few years we have increased sales volume consistently, added two new smaller Tesco stores, as well as refitting and remodelling a further three existing stores. And in November, we opened our first new large superstore in Budapest. The store, the first of its kind in Hungary, offers customers an extensive range of food and non-food products. We have also introduced a whole range of new merchandising concepts to the market, including an in-store bakery, a hot chicken counter and deli counters.
We moved into Poland in 1995, and in April 1996, acquired 13 stores in the Czech Republic and Slovakia. All of our current Central European stores are located within a 200 mile radius, providing a coherent focus to our activities. Central Europe continues to be exciting in terms of our longer term plans. The opportunities in this region are tremendous, with economic growth rates of between 3%-6%, more than double that of Western Europe. With rising consumer incomes and car ownership, prospects for future spend on food and non-food products look very good. As a result, we are planning to build another superstore in Hungary in 1997, with a further six to eight stores planned in the region for 1998.
David Wild, European Corporate
Development Director, Head Office
We now employ 9,500 people in Europe, who are working hard to deliver Tesco value to more and more new customers. Together with over 50 people drawn from our UK business, we now have a strong team in place to drive our business forward.
Additional Information
Chairman's statement
Financial review
List of stores
Directors' report
Notes to the financial statements - note 1
Notes to the financial statements - note 31
