Our part within Tesco

Customers really like the prices, quality and variety of our non-food. If fact, more and more people are choosing to buy not just their household essentials from Tesco, but expensive items too - like clothing, TVs, fridges and sports equipment.

They appreciate the convenience of being able to do all their shopping under one roof in our Extra stores. Because of this, our non-food business has again made very good progress.

Looking just at UK sales growth, we hit 13% during the year -and total non-food sales increased to £6.8 billion.

And as we cut prices, volume growth was even higher again.

Other success

• Health and beauty sales increased by 10%.
• Stationery, news and magazines sales up 17%.
• Consumer electronics sales up 34%.
• Sports goods up 31%.
• ...and newer areas like jewellery and MP3 players have been incredibly popular with customers.

Home Living

In April 2005, we refreshed our home textiles range and sales have increased by 30%.

Homeplus

Tesco without the food? It might seem odd at first, but the success of our first Tesco Homeplus store (in Denton, Manchester) says otherwise.

We're now going to expand the trial, and more stores will open shortly in Bristol, Southampton and Telford. These stores, which will trade from more than 30,000 sq ft of sales area, will stock a wide range of non-food items, similar to the range in Extra hypermarkets.

More floor

Sometimes an idea is so obvious, it makes you wonder why nobody thought of it before.

Our mezzanine floors are a perfect example, instantly boosting the floorspace - especially for hardlines. The result? More sales, leading to a better buying position for us - then lower prices for our customers.

It's just one example of how we all work together to get the best result for our customers.