Capital Markets Day - Sainsbury's/media/Files/S... · 22 Capital Markets Day - September 2019. Be...

Capital Markets DayMike Coupe

2 Capital Markets Day - September 2019

Key industry challenges

bull Growth of discounters

bull Growth in digitisation of customer shopping

bull Low to no underlying market growth

We have created a multi brand multi channel business

Growth


Purpose To help our customers live well for less

Be competitive on price

Offer distinctive

products and new categories

Drive efficiency to invest in the

customer offer

Grow connected

servicesPriorities

Provide a seamless customer

experience

Metrics

Make shopping convenient

supported by great service

Colleague engagement Customer satisfaction Volume share Profitability Free cash flow ROCE

We will help our customers live well for less


Paul Mills-HicksFood Commercial DirectorDelivering our food proposition

bull Changes to our value proposition and customer response

bull Confident we can sustainably fund investment in the offer

Simon Roberts Retail and Operations DirectorDelivering service and conveniencebull Store operating model delivering improved service and

convenience while lowering our cost to serve

bull Targeted investments allowing investment in more of our store base more frequently

Confident in the Core

Patrick DunneDirector of Property Procurement and Cost TransformationDriving value from our estate

bull 5 year plan to realise value from and optimise our estate

Kevin OrsquoByrneChief Financial OfficerCost transformation

bull Unique opportunity to deliver structural cost reduction by bringing our businesses together


Jim BrownCEO Sainsburyrsquos BankFinancial Services strategy

bull Reshaping the business to improve profits returns and cash generation

bull Stop mortgage origination no further Group capital injections into the bank

Mark GivenChief Marketing OfficerNectar

bull The strength of the Nectar coalition model

bull Launch of digital Nectar

bull Potential to advance monetisation of Nectar data

Our integrated customer offer

Clo MoriartyChief Digital OfficerDigitising the customer journey

bull Building a seamlessly integrated digital proposition

bull A unique competitively advantaged multi brand multi channel platform


One multi brand multi channel business

A unique range of assets and capabilities

A joined up multi brand multi channel proposition - allowing customers to shop with us however they want

We can only deliver this by fully integrating our businesses

This also provides an opportunity to structurally transform our cost base


Helping our customers live well for less

Confident in the core Integrated customer offer


Strong cash generation supporting investment dividend and allowing deleverage

Financial flexibility and resilience

Sustainable cost reduction covering cost inflation and funding investment in our competitive offer

Delivering our food propositionPaul Mills-Hicks


Be competitive on price Offer distinctive productsand new categories Grow connected servicesDrive efficiency to invest

in the customer offerMake shopping convenient supported by great service

Provide a seamlesscustomer experience

We have made changes to our value proposition

bull Better Entry Price Point (EPP) ranges

bull Lower prices on key volume lines

bull Competitive on ldquoabove the linerdquo deals

Delivering our food proposition

We are confident in our ability to sustainably fund investment in the customer offer

We can sustainably fund this

bull Industry-leading Value Chain Analysis

bull Optimising our advantaged sales mix

bull Prime destination for supplier investment

bull Operating cost savings

Offer distinctive productsand new categories





Product Quality Framework Our clear segmented strategy

Quality Option Commodity Everyday Speciality

Competitive to drive footfall ldquono reason to shop elsewhererdquo

Added value distinct and exclusive ldquoevery reason to shop with Sainsburyrsquosrdquo

77of volume

66of gross profit

23of volume

34of gross profit





Reminder of our value opportunity

YoY value share change by tier FY 201819

Source Nielsen Panel Total FMCG Market Universe Total outlets 52wks data to 9 March 2019

PremiumOwn Brand

Branded

-18

-03 StandardOwn Brand

EconomyOwn Brand

01

-01





Developing our EPP owned brands offerProduce Meat Fish amp Poultry Dairy

Bakery

Sweet Treats

Savoury Treats Pet Store Cupboard

Prepared Foods Deli Products Household Beers Wines amp Spirits

Health amp Beauty

Fresh Frozen





0

50

100

150

200

250

300

Pre 1920 April May June July August September October November December January February March April May

2019 2020

Expanding the offer ndash 12 brands launched

Number of EPP lines landed

Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr MayPreFY 201920





Gaining customer spend limited trade-down impact

bull Incremental choice for customers

bull Focused on price competitiveness

bull Value Index of range to Aldi 991

bull Converting customers in store

bull Profit percentage dilutive

bull Profit cash accretive

Sainsburyrsquos Meat Fish amp Poultry Value Own LabelGains and losses

Gains

Losses

Incremental Trade-down within Sainsburyrsquos

May 18 July 19

Source Kantar 12 we 16 July 2019 ndash rolling 12 weeks switching within total Market MFP 1 Incremental MFP growth represent gainslosses from category impact (existing shoppers repertoire category arrivaldepartures and competitors steal) 1 Correct at 12 Sep 2019





Lowered prices in key high volume categories

Market Disruptive Price Investments Customer led price investments

Chicken Breast Fillets 640g-60p -15

5 fat Beef Mince

-30p -9

Salmon Fillets 240g-60p -17 Breaded Ham

7 slices 120g-45p -26

pound300was pound330pound340

was pound400

pound300was pound360


Executing through Price Lockdown





We continue to be less dependent on promotions

45

40

34

33 YoY changeppts

(44)

00

(01)

(01)

Fuel activity (days)2Promotional volume1

Source 1 Kantar Grocery total volume sales 52 weeks to 8 Sept 2019 2 Trade press summary of days live 52 wks to 21 Sept 2019

58

60

32

nil





More competitive on price than we have ever been

Price vs Tesco Commodity Average Selling Price vs Aldi

Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp

Source Sainsburyrsquos value index based on Brandview SKU matching data





Market share progress

Source Nielsen Panel Total FMCG 4 12 and 52 weeks to 07 Sept 2019 ndash Market Universe Total Outlets

-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks

Value growth Volume growth





Switching losses to discounters reversed

Source Nielsen Panel Total FMCG Market Universe Total Outlets 12wkly data to 07 Sept 2019 vs 08 Sept 2018 Spend switching as a of total sales

-30

-25

-20

-15

-10

-05

00

05

10

15Switching gainslosses as a percentage of total sales

2019 Feb Jun Jul Aug Sept Oct Nov DecMar Apr May Jan Feb Jun Jul AugMar Apr May

2018 SeptJan





Gains from premium competitors

Taste the Difference relaunch Switching gains from premium competitors

00

01

02

03

Aug Dec2018

Sep Oct Nov Jan Feb Mar Apr May Jun Jul Aug2019

SeptSept

Source Nielsen Panel Total FMCG 52wkly data to 07 Sept 2019 Spend switching as a of total sales





bull Innovative and distinctive brands

bull New incremental choice for customers

bull Unique to Sainsburyrsquos in the grocery channel

bull 158 exclusive and owned brands

bull pound200m sales to date

bull Average incrementality 56

bull Cash and margin rate accretive

Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales

Distinctive brands sales

Mar Jun Sep Dec Mar Jun2018 2019

Offer distinctive productsand new categoriesBe competitive on price





Category tier performance better balanced

YoY value share change by tier

-04

-06

13

-06

12 weeks to September 2019

-03

01

-01

-18

52 weeks to March 2019

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09

Source Nielsen Panel Total FMCG Market Universe Total outlets 52wks data to 9 March 2019 and 12wks data to 7 Sept 2019


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand





PQF framework helps us fund investment

PQF activity to date covers

49of food volume

Improved Value Indexmore competitive

More distinctive range more reason to shop at Sainsburyrsquos

Reduced SKU countoperational efficiencies

Cash gross profit +35

Increased salesvolume intensityoperational efficiencies






PQF cereals case study

Investment

New missions

Exclusive products

Range removal

Improved Value Index gt100bpsmore competitive

More distinctive range 6 brandsmore reason to shop at Sainsburyrsquos

Reduced SKU count -20operational efficiencies

Higher cash gross profit

Increased salesoperational efficiencies

Cereals reset






Own brand Value Chain Analysis (VCA)

own brand COGS reviewed

pound4bnpound265m

201617 to 201920

further opportunitypound2bn

7 savings

lsquoBuying better for lessrsquo

Reviewed Opportunity

pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1





VCA case study Spanish fruit

Before20 cost saving

After

Grower Depot Store3rd Party Importer

1 2 3 4

1 32

Better for customers

Grower StoreDepot

At least 1 day faster from farm to shelf

Saving gtpound12m

Better customer availability

End to end simplicity







bull Better EPP ranges











Delivering service and convenienceSimon Roberts



in the customer offerMake shopping convenientsupported by great service


Delivering service and convenience

Fit for the future store model improving service and convenience

bull The right channels to market

bull A store operating model fit for the future- Flexible workforce- Right management structures- Improved performance management

bull Improving customer satisfaction

bull A better shopping experience

Delivering improved service and convenience while lowering our cost to serve


bull Continuous measurement

bull Digitising store operations

bull Continuous efficiency improvements to cover inflation

bull Targeted customer-centric higher returning investment in our stores





Investing in stores and taking a proactive approach to space

bull Rebalanced 20 of our supermarket space over the last 18 months

bull Total space repurposed since FY 201415 over 870000 sqft

bull Improving choice convenience and reasons to shop

Leveraging our advantaged supermarket portfolio

1617 1718 1819

Trading intensitySupermarkets inc GMampC and Argos in Sainsburyrsquos





Driving strong online growth through a highly efficient operating platform

A profitable operation that benefits our supermarkets

bull Strong and consistent online growth

bull Consistently high customer feedback

bull 98 UK households c60 same day

YoY improvement in items picked per hour

201415 201920F

40





Convenience Delivering sustained growth

75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516

Knowledge of colleagues

Speed of checkout

Friendliness of colleagues

Ease of checkout

Availability of colleagues

Customer satisfaction (total)

Source Nielsen EPOS ConvenienceTotal Business Quarterly data to Q1 1920 Units

Q2 1819 Q4 1819 Q1 1920 Q2 1920Source Lettuce Know

QTDQ3 1819

Consistent LfL growth and market share gains Market-leading convenience trade intensity

Strong and improving customer satisfaction

Co-opWaitroseSainsburyrsquosOne StopTesco Express

Source IGD

(poundsqft)





Future fit

Store operating model reset

bull Lower cost to lead

bull Customer-focused leadership teams

bull More flexible simple structures

bull Strong levels of colleague and leader engagement

bull Improved colleague performance and capability





Store operating model fit for the future

Simplified and consistent operations to drive service amp availability

Colleagues and operations focused on delighting customers

Investment in customer experience technology and stores look and feel

Unlock further efficiency to reinvest in the customer offer





Smart Store Improved service more efficient

Storeoperating

modelConnected Colleagues

Safe Stores

Connected Buildings

Revolutionisedcheckout model

Supermarket items sold per worked hour

+12+23

+24+2

Friendliness ofcolleagues

Knowledge ofcolleagues

Availability ofcolleagues

Availability ofproducts

Q3LY

Q2TY

+14

Apr May Jun Jun Jul

2018 2019Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jun Jul Aug





bull SmartShop ndash in-store scan pack and go

bull Upgraded 2500+ self checkouts - 10 improvement in speed- Improved customer satisfaction

- ease of checkout +4 - speed of checkout +53

bull Higher self checkout penetration- Every 1 of items moving to self checkout delivers

pound46m efficiency saving

Investment in checkout experience





bull Seamless digital platform for all colleagues- More time on sales floor with customers- Industry leading technology enabling highly

efficient store operations- Apps

- Replenishment - Activity - Stock- Risk - Reporting

bull Saving 1 million hours of management time and removing c1000 tasks

Connected colleagues





Improving product availability

Produce - online Grocery - online Fresh - online

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jun Jul Aug2018 2019

94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting

Heating amp Ventilation

Lifts

Solar panels

Fuel

Connected buildings





Investing in the core

Cafeacute BakeryProduce

Overall customer satisfaction

14

Before Before Before

AfterAfterAfter

Core investment this year

250 supermarkets





Improving the appeal of our Supermarkets

Beauty transformation Distinctive features

Wellness

Tu

Food to Go

Highlighting new offersIntegrated GM amp Clothing

Serving more missions and driving returns

Food concessions





Improving supermarket customer satisfaction

Source Lettuce Know in-store programme Supermarkets only

Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues


Availabilityof colleagues

Value formoney spent

Appealingpromotions

Quality of items

Varietyof items

Availabilityof products

Layoutof stores

Ease of moving

through store

Ease offindingitems

Cleanlinessof toilet

Cleanlinessof store

Q2 1920

Q3 1819

Store fabric and infrastructure Value proposition Service





3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd

Improving customer satisfaction ranking

Layoutof stores

Ease of moving

through store

Ease offinding

items

Cleanlinessof toilets

Cleanlinessof store

In storelighting

Source Lettuce Know competitor benchmarking programme

Store fabric and infrastructure

Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues

Availabilityof items

Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019





Driving further consistency is a significant opportunity


Availability Speed Cleanliness Friendliness

+12

+20

+18

+12

4 weeks to 22 Jun 19 4 weeks to 24 Aug 19

Opportunity stores FY 201920 YTD

Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket

Overall Satisfaction

NPS

Value for Money Spent

Appealing Promotions

Quality of Items

Availability of Products

Friendliness of Colleagues

Knowledge of Colleagues

Availability of Colleagues

Variety of Items

Speed of Checkout

Ease of Checkout

Cleanliness of Store

Layout of Store

Ease of Finding Items

Ease of Moving Through Store

















Driving value from our estatePatrick Dunne





An advantaged estate with profitable routes to growth

Portfolio context

bull Advantaged portfolio

bull Estate flexibility in a multi channel world

Efficiency

bull Estate rationalisation

bull Argos in Sainsburyrsquos

Growth

bull Retail store growth

bull Concessions

bull No legacy pipeline

Value creation

bull Mixed Use Developments

bull Estate management

bull Better returns from our capital investments

bull Lower operating costs





Advantaged locations

Sainsburyrsquos market share

Gross domestic household income

Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS





Rent liability ndash stores only

0 2 4 6 8 10 12 14 16 18 20 22 24 26+

Argos Convenience Supermarket

Full years until expiry

Total rent liability in year

Weighted average unexpired lease term by rent

A flexible leasehold estate

14

8

4

Supermarket Convenience Argos

Years





Argos footprint

includes ROI

Coverage 82 +4 86ArgosArgos in Sainsburyrsquos

Argos stores

Argos in Sainsburyrsquos

Total Argos stores

Collection points

Total Argos points of presence

At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819





Our property strategy

Growth

2

Sainsburyrsquosnew space

Space productivity

Value Creation

3

Mixed usedevelopment

Ownershipstructures

Freehold vsleasehold

Efficiency

4

Reducing occupancy costsestate management

Store closures

Asset disposals

CRampS Value for money

1

Energy and carbon

Capital spendreduction

Argos estate review





In-store investments

bull c10000 individual store initiatives in 2019

bull pound200m annual capital budget

bull New procurement model delivering c10 improvement on accessible spend of pound150m


Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores

CRampSValue for money

1





pound260 million invested in energy saving since 2011

bull 3000+ energy saving initiatives

bull 970000+ tonnes of CO2e saved

Active energy management

Solar PV LED lighting Environmentallyfriendly


1





bull Supermarket pipeline reduced by 80

bull 72 schemes- 16 stores opened- 10 to be progressed

- 2 planned FY 201920

bull 46 commercially resolved

72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes

Sold 18 sites pound82m cash 6 sites for sale cpound20m cash

Supermarket pipeline reduced

Growth

2





Large Convenience Food on the Move

New convenience formats

Mansion House LondonAscot amp Woodhall Spa

Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324

bull Strategy high quality branded partners at scale - providing additional missions for customers

with a sales halo

bull Current income of pound25m per year - c650 fixed concessions- c4000 minor concessions

bull pound20m incremental opportunity over 5 years

Concessions

Growth

2





A growth strategy to deliver pound120m+ profit

Activity (2019-2024) Profit

New Convenience stores pound70m+

Build our existing retail pipeline pound30m+

Further concessions opportunities pound20m

Total pound120m+

Growth

2





Nine Elms

bull Freehold site

bull We obtained planning consent for new store and 737 new homes

bull Sold site to developer who- Built a new store (no ongoing rent liability)- Built the homes- Paid us pound66m and built us a store for free

Mixed Use Development

Value Creation

3





Mixed Use Development pipeline

Number of schemes Status Net receipts

3 Completed pre 2019

pound156m

6 Well advanced and in the planning process(2019-2024)

pound150m to pound200m

6 Identified and commercial approach being confirmed(2025-2030)


12 Forecast pound270m to pound350m

Greater London

02

0104

0305

Planning approved

In planning

Pre-planning

2025-2030 50 success rate at pound40m per site

Value Creation

3





Store level metrics

bull Profitability

bull Rent cover

bull Cash generation

bull ROCE

Sainsburyrsquos estate review

Supermarkets Convenience

Store numbers 608 820

Proposed rationalisation 10-15 30-40

Efficiency

4





Argos estate review

Argos

Total Argos points of presence 1200

Store numbers 602

Proposed rationalisation 60-70

New Argos in Sainsburyrsquos opportunities

80+

Standalone Argos stores as at FY1819

Efficiency

4





One-off cost of closure and impairment pound230m to pound270m

of which cash cost pound30m to pound40m

Ongoing EBIT benefit pound17m to pound23m

Closures to be phased over 2 years (starting FY 201920)

Estates review Financial outcome

Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation





Cost transformationKevin OrsquoByrne





Cost Transformation

We have a proven track record of delivering cost savings to manage inflation

We have a unique opportunity to deliver structural cost reduction by bringing our businesses together lower cost better for customers

Bringing our businesses together creates further opportunity





Delivering annual savings

Manages inflationary pressures BAU savings






Store management

pound31m

Procurement GNFR

pound50m

Groceries online productivity

pound17m

Energy savingsand running costs

pound5m

Manages inflationary pressures

BAU savings201819

Retail HR

pound19m





Strategic cost transformation 5 year plan

Delivers structural change and supports investment in the customer proposition

cpound500m by 202324

Strategic cost transformation projects





Property

Store operations


Addressable cost base

pound5bn10

pound13bn

Logistics amp Supply Chain

pound1bn

Centrals amp support functions

pound12bn

pound15bn






Converge Tackle fixed cost

End to end reviews

Retail Operations Marketing and Commercial Operations

Other central support

Logistics and Supply Chain

Project A

Project C

Project D

Shared Services BPO

Property strategy

Project BGNFR procurement

Capital prioritisation

Technology Digital and Corporate Services

pound100-pound150m

pound150-pound200m

pound150-pound250m

pound400-pound600mExecution underway In planning Opportunities identified





260

265

270

275

280

285

Unique opportunity to deliver structural cost change

150 - 200 bps operating cost ratio improvement by Year 5

Retail sales (inc VAT exc IAS 18 adj exc Fuel) and operating costs ex OIampERetail cost savings exclude Bank

201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8




Developing our EPP owned brands offer









Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation

Reviewed Opportunity Column1

Category 1 4 2

Category 1 Category 1


Key industry challenges

bull Growth of discounters

bull Growth in digitisation of customer shopping

bull Low to no underlying market growth


Growth




Offer distinctive



customer offer

Grow connected

servicesPriorities


experience

Metrics



































































77of volume

66of gross profit

23of volume

34of gross profit








PremiumOwn Brand

Branded

-18


EconomyOwn Brand

01

-01






Bakery

Sweet Treats



Health amp Beauty

Fresh Frozen





0

50

100

150

200

250

300


2019 2020
















Gains

Losses


May 18 July 19









5 fat Beef Mince

-30p -9


7 slices 120g-45p -26


was pound400









45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2





Offer distinctive



customer offer

Grow connected

servicesPriorities


experience

Metrics



































































77of volume

66of gross profit

23of volume

34of gross profit








PremiumOwn Brand

Branded

-18


EconomyOwn Brand

01

-01






Bakery

Sweet Treats



Health amp Beauty

Fresh Frozen





0

50

100

150

200

250

300


2019 2020
















Gains

Losses


May 18 July 19









5 fat Beef Mince

-30p -9


7 slices 120g-45p -26


was pound400









45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2
































































77of volume

66of gross profit

23of volume

34of gross profit








PremiumOwn Brand

Branded

-18


EconomyOwn Brand

01

-01






Bakery

Sweet Treats



Health amp Beauty

Fresh Frozen





0

50

100

150

200

250

300


2019 2020
















Gains

Losses


May 18 July 19









5 fat Beef Mince

-30p -9


7 slices 120g-45p -26


was pound400









45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2









PremiumOwn Brand

Branded

-18


EconomyOwn Brand

01

-01






Bakery

Sweet Treats



Health amp Beauty

Fresh Frozen





0

50

100

150

200

250

300


2019 2020
















Gains

Losses


May 18 July 19









5 fat Beef Mince

-30p -9


7 slices 120g-45p -26


was pound400









45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2







Bakery

Sweet Treats



Health amp Beauty

Fresh Frozen





0

50

100

150

200

250

300


2019 2020
















Gains

Losses


May 18 July 19









5 fat Beef Mince

-30p -9


7 slices 120g-45p -26


was pound400









45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2






0

50

100

150

200

250

300


2019 2020
















Gains

Losses


May 18 July 19









5 fat Beef Mince

-30p -9


7 slices 120g-45p -26


was pound400









45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2














Gains

Losses


May 18 July 19









5 fat Beef Mince

-30p -9


7 slices 120g-45p -26


was pound400









45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2









5 fat Beef Mince

-30p -9


7 slices 120g-45p -26


was pound400









45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2







45

40

34

33 YoY changeppts

(44)

00

(01)

(01)



58

60

32

nil







Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2








Base Price Index

Apr Jul Dec2017 2018 2019

Dec2005 2007 2009 2011 2013 2015 2017 2019

-590bp -790bp








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2








-4

-2

0

2

4

Tesco

Asda

Morrisons

Sainsburyrsquos

-4

-2

0

2

4

Tesco

AsdaMorrisons

Totaloutlets

Sainsburyrsquos

52 weeks12 weeks

4 weeks

Totaloutlets

52 weeks12 weeks

4 weeks








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2








-30

-25

-20

-15

-10

-05

00

05

10



2018 SeptJan







00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2








00

01

02

03

Aug Dec2018


SeptSept













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2













Distinctive brands

pound55mbrand

+90customers YOY

60incremental

sales +60 YoY

150 growth forecast

Sales










-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2








-04

-06

13

-06


-03

01

-01

-18


PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand

-03

-01

03

-09



PremiumOwn Brand

Branded

StandardOwn Brand

EconomyOwn Brand







49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2








49of food volume












Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2







Investment

New missions

Exclusive products

Range removal






Cereals reset








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2








pound4bnpound265m

201617 to 201920


7 savings



pound2bn

pound4bn

Own brand food COGS


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2


Chart1

Reviewed
Opportunity
4
2

Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2


Sheet1







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation


Category 1 4 2







After


1 2 3 4

1 32


Grower StoreDepot


Saving gtpound12m














































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation











































1617 1718 1819












201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation











201415 201920F

40






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation






75

80

85

90

201718 201819201617

JS Market share

10

15

20

25

30

201718 201819201415 201617201516


Speed of checkout


Ease of checkout





QTDQ3 1819




Source IGD

(poundsqft)





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





Future fit





















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation















Storeoperating


Safe Stores

Connected Buildings



+12+23

+24+2





Q3LY

Q2TY

+14

Apr May Jun Jun Jul




























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation



























94

95

96

97

98

99





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





Energy meters

Automatic doors

Refrigeration

Bakery equipment

Lighting


Lifts

Solar panels

Fuel

Connected buildings








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation








14


AfterAfterAfter


250 supermarkets







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation







Wellness

Tu

Food to Go



Food concessions







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation







Speed ofcheckout

Ease ofcheckout

Knowledgeof

colleagues




Appealingpromotions

Quality of items

Varietyof items


Layoutof stores

Ease of moving

through store

Ease offindingitems


Cleanlinessof store

Q2 1920

Q3 1819






3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





3rd

2nd 2nd 2nd 2nd

3rd 3rd

4th

6th

5th

2nd


Layoutof stores

Ease of moving

through store

Ease offinding

items


Cleanlinessof store

In storelighting



Feb 2019 July 2019

4th







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation







4th

2nd =2nd 2nd

4th

5th

6th

Speed ofcheckout

Ease ofcheckout

Friendlinessof

colleagues


Knowledgeof

colleagues

Service

=2nd

4th

5th

Feb 2019 July 2019








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation








+12

+20

+18

+12



Measure 6AM -8AM

8AM -10AM

10AM -12PM

12PM -2PM

2PM -4PM

4PM -6PM

6PM -8PM

8PM -10PM Total

Supe

rmar

ket


NPS



Quality of Items





Variety of Items

Speed of Checkout

Ease of Checkout


Layout of Store

























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation























Portfolio context



Efficiency



Growth


bull Concessions


Value creation












Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation








Supermarkets

Convenience

608

82021

72

UK popNumber

Source Kantar ONS






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation






0 2 4 6 8 10 12 14 16 18 20 22 24 26+






14

8

4


Years





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





Argos footprint

includes ROI


Argos stores


Total Argos stores

Collection points


At acquisition

-221823

13

836

3

839

+268

+361

+314

+47

602

281

883

317

1200

FY 201819






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation






Growth

2


Space productivity

Value Creation

3


Ownershipstructures


Efficiency

4


Store closures

Asset disposals


1

Energy and carbon


Argos estate review










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation










Investing in over

450Supermarkets

Investing in over

200Locals

Investing in over

250Stores


1











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation











1









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation









72

4131

1510

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017 2018 2019

10

No of schemes



Growth

2








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation








Growth

2





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





Concessions income

pound25m

pound45m

pound20m

pound25m

pound30m

pound35m

pound40m

pound45m

pound50m

201819 201920 202021 202122 202223 202324


with a sales halo



Concessions

Growth

2










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation










Total pound120m+

Growth

2





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





Nine Elms

bull Freehold site




Value Creation

3








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation








pound156m






Greater London

02

0104

0305

Planning approved

In planning

Pre-planning


Value Creation

3





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





Store level metrics

bull Profitability

bull Rent cover


bull ROCE





Efficiency

4





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





Argos estate review

Argos


Store numbers 602



80+


Efficiency

4










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation










Efficiency

4






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation






Portfolio context



Efficiency



Growth


bull Concessions


Value creation










Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation






Cost Transformation















Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation












Store management

pound31m

Procurement GNFR

pound50m


pound17m


pound5m


BAU savings201819

Retail HR

pound19m













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation













Property

Store operations



pound5bn10

pound13bn


pound1bn


pound12bn

pound15bn







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation







End to end reviews




Project A

Project C

Project D

Shared Services BPO

Property strategy




pound100-pound150m

pound150-pound200m

pound150-pound250m






260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





260

265

270

275

280

285




201920 202021 202122 202223 202324

Operating costsales





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation





Cost Transformation




Slide Number 1







Slide Number 8













Distinctive brands







Slide Number 28





Future fit






Connected buildings








Slide Number 47




Argos footprint






Concessions





Argos estate review



Slide Number 65

Cost Transformation







Cost Transformation

Capital Markets Day - Sainsbury's/media/Files/S... · 22 Capital Markets Day - September 2019. Be...

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Transcript of Capital Markets Day - Sainsbury's/media/Files/S... · 22 Capital Markets Day - September 2019. Be...

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