Annual review 2 11

00105663.003 WILK Annual Report 2011.indb 36 06/07/2011 16:23 Newcastle-under-Lyme

00105663.003 WILK Annual Report 2011.indb 1 06/07/2011 16:20 2|3

Contents

O 1 Introduction...... 4 O2 Vision and values...... 8 O3 Our kind of people...... 12 O4 Remembering the past..... 14 O5 Our brand...... 16 O6 Branching out...... 18 O7 Multi-channel shopping...... 20 O8 Wilkinson Asia...... 22 O9 Charity of the Year...... 24 1O Doing our bit...... 28 11 In conclusion...... 30 12 Financials...... 32

00105663.003 WILK Annual Report 2011.indb 2 06/07/2011 16:20 Swansea

00105663.003 WILK Annual Report 2011.indb 3 06/07/2011 16:20 Introduction 4|5

O1 A busy year The last 12 months have flown by and we can’t believe that we are already seven months into 2011.

Despite having a second year of We also opened a further 14 new difficult trading conditions we have stores in our new brand and continued We opened a further seen our business continue to grow to expand into Scotland. By the end of and develop, which has only been 2010/11 a third of our stores had been 14 new stores in made possible through the hard work, rebranded along with our entire fleet our new brand and pride and passion shown by our of lorries; and all team members had team members. the new branded uniforms which continued to expand Our comparative growth this look fantastic. into Scotland. year was less than we’d planned, but Our new brand rollout didn’t stop we continued to deliver great deals there, we revamped a large selection and good, honest value for money of Own Brand products, providing Pictured left: products in all our stores at the same customers with a great range of Wilko everyday value time as continuing the rollout of our modern, functional and value for products, which rebranded stores. money products. undertook a major In our 80th year of trade we’d A target for 2010/11 was to continue packaging redesign. planned to rebrand 80 existing to support our Charity of the Year stores and we did it as 80 stores programme. In May 2010, we swapped received the great new look and feel from Children’s Hospice UK to a charity treatment – what an achievement by that is very close to Karin’s heart, everyone involved. Anthony Nolan.

00105663.003 WILK Annual Report 2011.indb 4 06/07/2011 16:20 Maidstone

00105663.003 WILK Annual Report 2011.indb 5 06/07/2011 16:21 Introduction 6|7 Our aim was not only to raise funds to support the great work that they do, So far we’ve raised but also to raise awareness and increase the number of people on the bone over £1.6m and marrow register. increased the Our team members, their families and, of course, our customers took this number of people charity to their hearts and we raised joining the register. over £1.6m, as well as increasing the number of people joining the register. One of Lisa’s favourite, and proudest, moments of 2010/11 was visiting the team in our spectacular new offices in Hong Kong. The 50-strong team’s role is to ensure that the products sourced from the Far East are not only great value, but excellent quality for our customers. The team have done an amazing job and are making a real contribution to our success. On top of this, we launched a new vision, mission and set of values. The new ones are an evolution of the old ones and As well as supporting our Charity of we think they show where the business is the Year programme, we ran a number of currently and where it plans to be in the local initiatives aimed at putting us at the future. Look out for more information on heart of every community we serve. these over the next 12 months. The three initiatives ‘Helping Hands’, So, despite a difficult economy, ‘Local Stars’ and ‘Wilkinson’s Heroes’ there were some real successes to were made possible through our celebrate in 2010/11 and 2011/12 is business donation of 1% of our profits already looking like an exciting year. and again have proved very successful All of this is only been made possible as we helped a number of people and through the dedication and team spirit local charities in the communities that shown by all our team members. we serve. Well done and thanks to everyone! In our 80th anniversary year, it wasn’t It just remains for us to recognise all work – celebrations were high on the everyone who has been involved in agenda. Team members received cakes, Wilko’s over the last 12 months, our keyrings and a personalised card and loyal customers, our shareholders, dressed up in fancy dress from the board, EMT, management and team 1930s to the present day to mark members alike, as well as our suppliers the occasion. and partners. Well done and our We also held a special AGM with heartfelt thanks to all of you for your 200 people from inside and outside our continued support! business and supporting partners, who have contributed to its success over the last 80 years. It was a thoroughly enjoyable event for all involved and a great way to recognise some of the many people who have played a part in our history and getting us where Karin Swann & Lisa Wilkinson we are today. Family Directors

00105663.003 WILK Annual Report 2011.indb 6 06/07/2011 16:21 O2 Delivering the extraordinary In 2010/11 we updated our vision and values to highlight what we would like every team member to aim for.

Vision Values Visions are statements that lift the Our values have changed too, If we live our vision, spirit, fire the imagination and harness although they are not radically all the energy of the business behind different from our previous values, succeed in our them. But to work they have to be they’ve had a slight refresh to bring mission and deliver instantly recognisable and shared them up to date. by everyone. The new values are a reminder the values we will On reflection, our previous vision of how we should behave when didn’t quite address the true Wilko’s delivering the company vision and show that we can spirit. So we created a new one to mission. As a reminder our old ‘be extraordinary’. inspire everyone’s journey ahead. values were: Our new vision is: • Shape the future So taking the values in their new order, Extraordinary everyday shopping • Pull together we have changed ‘shape the future’ in the heart of the community to ‘shape our future’ to make it • Build trust The new vision clearly emphasises absolutely clear that we steer our own that Wilkinsons is at heart a retailer and • Be passionate path towards a future that is entirely shows that we operate in the heart of • Show we care unique to Wilkinsons. the community. We are a family business We have kept ‘pull together’ and our customers and team members So what have we changed? exactly as it was. This value has literally take Wilkinsons into their hearts. Well, we have removed ‘build trust’. always worked really well for us and That doesn’t mean we no longer want encourages teamwork and alignment. Mission to build trust – we do, it is just that build We have changed ‘be passionate’ Our new mission describes what trust should be an outcome of living to ‘show passion’. Actually we think all of we do and is almost identical to our our values rather than a value itself! our team members are really passionate vision… but not quite. Our mission is: We have also taken out ‘show we care’. about lots of things, the business, “What can you do to passionately Again that doesn’t mean that we don’t the environment and our customers. deliver extraordinary everyday shopping care we just think that showing we care We just want you to show it some more. in the heart of the community?” forms part of ‘be passionate’. And we have created two new values; ‘be unique’ which again is part Or of having our own distinct identity and “What have you done to ‘make it fun’ because shopping is meant passionately deliver extraordinary to be fun and fun is what we do well and everyday shopping in the heart of it is an instantly recognisable feature of the community?” our brand! So, taking all that together, if we live The words for our mission will not our vision, succeed in our mission and always be the same but the concept is deliver the values we will show that we static and is deliberately crafted as a call can ‘be extraordinary’. to action. We intend the mission to be used in various ways within our business.

00105663.003 WILK Annual Report 2011.indb 7 06/07/2011 16:21 Vision and values 8|9

Arnold

00105663.003 WILK Annual Report 2011.indb 8 06/07/2011 16:21 We believe that everything we • Being awarded the Carbon Standard Show passion achieve is down to the hard work for our efficient energy management Our team members are and commitment our team members programme as we reduced our extraordinary and show passion in all demonstrate on a daily basis. energy consumption in our buildings sorts of ways. They have a passion for With the refresh of our values, we by 2.5% as we rolled out energy delivering quality service and quality wanted to highlight some of the top efficient lighting measures products for our internal and external achievements in 2010/11 and recognise customers whilst making big strides some of our own stars within the business. Pull together in improving service and ranges. Working and pulling together in one All around the business we have Shape our future direction is the only way that any business seen this delivered through: Every single team member within can succeed, that’s why it’s one of our Wilkinsons plays a key role in shaping key values. Throughout 2010/11 our team • Great new trends and designs our future – we all have to work together members have demonstrated some launched in stationery and home to drive the business forward. impressive results, here are just a few: with fantastic new ranges throughout The rebrand of our stores, our the year – especially at Christmas • C elebrating our 80th anniversary: and Halloween lorries and our team members’ team members from all over the • T he launch of our new offices in Hong uniforms have all played a huge business dressed up in costumes Kong with a 50-strong team part in this, but we have also seen from their favourite era to raise funds fantastic achievements that have for Anthony Nolan and celebrated with • G iving back 1% of our profits to shaped our future. And we care a celebratory AGM lunch. Long-serving charities and local communities about the communities we serve and award-winning team members all through our three corporate schemes and the environment. attended along with our suppliers and – ‘Local Stars’, ‘Wilko Heroes’ and Some of the great ways we have partners to enjoy the occasion. A great ‘Helping Hands’ shaped our future this year are: day was had and we really enjoyed • S upporting Anthony Nolan as our • Opening new offices in Asia having the people there who have Charity of the Year, with our team • 30% of our stores received our new helped us build the business over members and customers raising over platinum award for outstanding the years £1.6m and Anthony Nolan have seen customer service • O btaining Investors In People award an increase in the number of people registering on the bone marrow • Recognising outstanding team for the 14th year and the gold standard register, with 298 of our team members members by awarding company for the third year running. This year the joining. None of this would have been ‘Be a Star’ awards award also included our offices in Asia possible without the support our • D elivering a great Charity of the Year • Our leadership road show, UK team members, our customers and programme and raising awareness and supplier conference and Asia supplier our suppliers have shown conferences get better and better funds for Anthony Nolan • O ur employee trust has supported every year • O pening 14 new stores and team members and their families who relocating one store, saw us exceed • Improved Own Brand products and experience difficulties updated categories 6 million sq ft in trading space. We also continued with the rebranding of our • Our continued expansion into Scotland • Our expansion plans and new store existing estate opening programme. Last year we opened 14 new stores

00105663.003 WILK Annual Report 2011.indb 9 06/07/2011 16:21 Vision and values 10|11

Be unique Make it fun Although a new value this year, We want team members to enjoy we have always felt that we are unique their job and enjoy coming to work – thanks to our team members, our that’s why we have introduced the new history and our values. Without any of ‘make it fun’ value. Even though we them we would not be able to achieve can’t have fun all of the time, we want the high standards that we do. everyone to make the work environment Over the past year we have seen as pleasant as possible – not just for some really great examples that show team members, but for customers how unique we are: visiting our stores. Over the last 12 months we have • A staggering 935 team members hit made it fun in various ways: personal service milestones this year – 383 team members celebrated • Through launching our new vision 10 years’ service and values – 374 team members celebrated • Our new offi ces in Asia are bright, 15 years’ service modern and fun – 134 team members celebrated • Our new lorry designs make you 20 years’ service smile every time you see them – 44 team members celebrated • Our team members dressing up over 25 years’ service for Anthony Nolan – We now have 4,297 team members • Our events in store really with 10 years’ or over service bring out the fun side of our corporate personality • 308 team members and their families stayed in our team member • Our new products such as Christmas holiday homes in Devon, Norfolk gifting really highlight our fun and and East Yorkshire, provided by our quirky side with great designs employee trust and packaging • 38 team members completed our Aspire 1, 2 and 3 programmes, which were examined externally for the fi rst time this year

• Our brand continued to develop to give customers the same friendly Wilko’s welcome and providing them a great environment to shop in 4,297 • We rebranded our entire fl eet of lorries with 18 new designs – the TeAM MeMBerS HAVe fun, distinctive, new looks are really 10 yeArS’ Or getting people talking OVer SerVICe

Sheffi eld

00105663.003 WILK Annual Report 2011.indb 10 06/07/2011 16:21 Our team members make Wilkinsons the success it is.

00105663.003 WILK Annual Report 2011.indb 11 06/07/2011 16:21 Our kind of people 12|13

Head Office O3 A team effort Our team members are very dear to our hearts and it’s important to us that we provide them with an environment that’s a pleasure to work in.

2010/11 saw the business continue to Nick Walker – took up the position of In Head Office and DCs, we created grow, so it’s more important than ever Senior Retail Controller for the East zone. 101 new executive positions (44 were to ensure we continue to look after Chris Burns – joined us from ASDA into external appointments and 57 were them so they grow with us. the position of Category Manager. internal appointments). In 2010/11 we had the following In Retail, 45 team members were changes within the executive Richard Biggin – was promoted internally promoted to Assistant Manager and 36 management team: to Merchandiser Controller. to Manager positions, whilst two team members were promoted to Regional Frankie Adams was promoted Richard Neill – joined us from The White Executive positions. to Head of Buying. Frankie joined the Company to lead our quality agenda. business from ASDA in September Andrew Palfrey – joined us from ASDA to Thank you 2009 to take up the role of Category work on projects before taking Our team members make Wilkinsons Buying Manager for FMCG before being up the Communications and Insight the success it is and without their drive, promoted to Head of Buying. Controller role. ambition and dedication to succeed we Ian Cutts was promoted to Head Clare Lawrence – joined us from would not be in the position we are today. of Property. Ian has led the successful Northern Foods into the role of Our thanks go to every single one for One Touch programme over the past 18 Procurement Controller. driving the business in their own way. months and has been with the business Thank you to our team members in Andy Wilson – was promoted internally for over 26 years. the UK and Hong Kong, our suppliers to Property Controller. Other changes within Wilkinsons were: and our advisors and most importantly David Windridge – took the position of our customers. HR Controller. Good luck everyone!

00105663.003 WILK Annual Report 2011.indb 12 06/07/2011 16:21 From humble beginnings to... A household name takes time to establish – the Wilkinsons story is a perfect example of belief, vision and sheer hard work, principles we still adhere to today.

James Kemsey Wilkinson (JK) After a buying and merchandising In 2008, we updated our brand and his fi ancée Mary Cooper opened review, Wilkinsons decided to and launched the fi rst ‘new look’ stores the fi rst Wilkinson Cash Store at 151 stop selling bulky items such as in Sheffi eld, Leicester and Walton-on- Charnwood Street, Leicester, in 1930. lawnmowers and greenhouses to Thames, as well as launching Wilkinson Two years later they opened a second concentrate on everyday items that Asia. In 2009 we opened our fi rst shop in Wigston Magna and by 1940, can be taken home in a shopping bag. stores in Scotland. there were nine Wilkinson Cash Stores, In 1973, paint became the fi rst ever 80 years after that fi rst store as they were then called; the name own-label product. A year later we had opened in Charnwood Street, we changed to Wilkinson Hardware Stores expanded our own-label range to 24 continue to roll out our rebrand Limited a year later. products. By the end of the decade, programme. We’re proud to announce The 1940s brought war and we had grown to 36 stores with an that in our 80th year, we rebranded 80 challenging times for retailers. annual turnover of £15.6 million. stores. We aim to reach a total of 500 During this period three stores were 42 new stores were opened in the stores over the next three years. We’ve forced to close, but soon re-opened 1980s taking the total number of stores also rebranded all of our lorries and all once the war had ended. Always ahead around the UK to 78, selling 13,000 team members are now sporting our of our time, as a new decade dawned, products to 24 million customers. In fantastic new uniforms. It’s a cliché, Wilkinsons recognised and rode the 1987, The Hardware Trade Journal but it’s true – even at a ripe old age, wave of the increased popularity in named Wilkinsons Retailer of the Year. Wilkinsons is still in the fi rst fl ush DIY by introducing several labour- In 1992, our 100th store opened, of youth. saving devices. In 1958, we opened as did a new Distribution Centre, our biggest ever store expanding the housing the fastest sorting system in business to 11 stores with an annual the UK. remembering the turnover of £300K; by the mid-sixties past and looking to this had grown to 28 stores turning over £2.4 million. the future.

00105663.003 WILK Annual Report 2011.indb 13 06/07/2011 16:21 Remembering the past 14|15 O4 Happy 80th Birthday to us To celebrate this landmark, the whole business joined together and remembered the past as well as looking forward to the future. Team members across all stores, DCs and Head Offi ce really got into the spirit of things to make it a year to remember.

Food for thought In June we held a very special AGM and lunch. Attended by the family, board members, EMT, long-serving team members, Aspire delegates and our Local Stars – guests enjoyed a splendid lunch in the beautiful surroundings of Rudding Park and listened to presentations from Karin, Lisa, Stuart and Ian.

80 years Step back in time Our stores, Head Offi ce and DCs also joined in the celebrations on and we’ve by donning fancy dress costumes from their favourite era and putting up appropriate decorations. All team never been members received a keyring, a slice of birthday cake and card to remind them of the success that they are all part of and have contributed to. stronger.

00105663.003 WILK Annual Report 2011.indb 14 06/07/2011 16:21 It’s showtime July 2010, the venue was a Georgian Townhouse in London where 238 journalists gathered to get a peek of the new Wilkinsons ranges.

The turnout for our Christmas Press Show was up from the previous year, At the show, which in turn led to an increase in the amount, and quality of consumer PR we price was the main achieved over the Christmas period. talking point. There was an ideal mix of media in attendance, including key weeklies and influential monthly glossies; The range attracted really positive representatives attended from titles comments from Prima Baby, including Good Housekeeping, Chat, Mother and Baby and Practical Elle Decoration, Cosmopolitan, Bella, Parenting, who likened our range to BBC Gardeners’ World, Ideal Home that of The Early Learning Centre. and Best, to name but a few. On the back of the success of the Anticipation was high and, on press show, the coverage increased the day, the venue looked fantastic. by 156% – increasing year on year We zoned the space to create strong, awareness of the brand and ultimately impactful displays of Christmas, Gifting driving customers to store. and Wilko Play. We created displays around a single price message, including a huge display of our 80p decorations, that went down well with the journalists. Price was the main talking point during the event as was our Wilko Play display. We turned a dedicated room into a giant oversized playroom with packaging blown up to waist height to make the journalists feel like children and to encourage them to engage and interact more with the toys. Press show

00105663.003 WILK Annual Report 2011.indb 15 06/07/2011 16:21 Our brand 16|17 O5 Pride & joy 2010 was a fantastic year for Own Brand with record sales exceeding our expectations.

Our brand is who we are – it’s the very lifeblood that flows through every area of our organisation In 2010, our Own Brand really started to establish itself with some major launches: • N ew Own Brand food, snack and confectionary ranges • W ilko Play – 134 fantastic products Our new look hits the road launched in time for Christmas But it’s not just on the shelves • A range of quality baby nappies where our new brand is looking great • W e relaunched our Wilko core Own – 2010/11 saw our new brand roll out Brand gardening range further and transform our fleet of lorries. We introduced 18 new designs, In addition to the above, our all with a fun personality of their own. ‘everyday value’ range was further The designs include some of our extended and now has over 450 Own Brand products, some of our best products under this banner offering categories and even some of our own simple quality at great value. We also team members. The new designs have £ continue to develop our premium had a huge impact with many people 700 Own Brand – this will be rolled out as debating which their favourite is. ‘Wilkinson’ in October 2011 with an Over the last 12 months, we’ve million initial launch of just over 100 products. created some great in-store events that go hand-in-hand with our great new-look campaigns. Delivering a own brand strong value message by combining sales up 10% This year saw our team member participation and Own Brand really themed POS, campaigns such as Get on last year! Growing, Back to School, Get Kitted start to establish itself. Out and Halloween were all a great success with our customers.

00105663.003 WILK Annual Report 2011.indb 16 06/07/2011 16:21 Extraordinary everyday shopping in the heart of the community.

Boston

00105663.003 WILK Annual Report 2011.indb 17 06/07/2011 16:21 Branching out 18|19 O6 Opening doors In 2010, we continued to promote value across the uK by expanding into new towns and communities.

In tough times we continued to A great move Looking ahead move forward with our plan to expand But it’s not all about new sites – in No matter how many new stores the Wilkinsons brand into more 2010 relocation and refurbishment were we open, and how much success we communities throughout the UK. also order of the day. have, we never sit back and relax. We’re constantly looking to the 2009 saw us make real headway in • Our King’s Lynn store was relocated to future and searching for new ways new territories – 2010/11 has been no larger premises enabling us to expand to expand the business and deliver different as we continued to deliver our our range and bring even more value great Wilkinsons value to more people; unbeatable brand and family value to a to the people of East Anglia wider audience. we’re already quickly fi lling up space Rebranded stores not only look • We also extended our store in the on our store opening programme for and feel so much better – we’ve also Frenchgate Centre, Doncaster, the next two years. seen a promising fi nancial return. In our to 20,000 sq ft and, in doing so, rebranded stores alone, 2010 saw a sales expanded our total trading increase of 4% on the previous year. space across all stores to over not only are we In the last 12 months, we’ve opened 6,000,000 sq ft another 14 stores – nine in England and bringing great North of the border fi ve in Scotland. In England, you’ll fi nd We’re delighted to be taking our new Wilkinsons stores in: products and Wilkinsons great value north of the Manchester, Reading, Harrow, border, developing new relationships unbeatable value Telford, Exeter, Newbury, Swanley, and supporting new communities. to these areas, Camberley and King’s Lynn Building on the great work we did we’re also doing our Not only are we bringing great in 2009 when we opened new stores products and unbeatable value to in Motherwell, Irvine and Clydebank, bit to regenerate these areas, we’re also doing our bit to we’ve now expanded the Wilkinsons regenerate town centres by creating brand into the following areas. town centres. jobs and adding a splash of colour to the Greenock, Kilmarnock, Livingston, high street. But that’s not all... Hamilton and Ayr Giving back to the community It’s been a long-held ambition for When we move to a new location, us to really make our mark in Scotland – we invest, on average, £1m in our store something we’re working towards as we and work closely with the local job continue to put our big plans into action. centre and other employment agencies.

00105663.003 WILK Annual Report 2011.indb 18 06/07/2011 16:21 Sheffield

00105663.003 WILK Annual Report 2011.indb 19 06/07/2011 16:21 Multi-channel shopping 20|21 O7 Quality and value at your fingertips In 2010/11 WilkinsonPlus continued to blossom as we invested in people, systems, technology and procedures.

Multi-channel shopping has never been easier or more rewarding. Wilkinson Plus is WilkinsonPlus makes it simpler for customers to get their hands on the key to helping us products they want – whether online, create extraordinary over the phone or in store. Promoting our range to the widest customer experiences. possible audience, that’s the aim of WilkinsonPlus and as we continue to In store refine the system, it will only deliver Our Enhanced Customer Service our range faster and to more potential E-learning Package was created to up and existing customers. skill team members on how to fully support order point and online sales. Online • Over 6,000 of all retail team 2010 saw a huge growth in Catalogues members have successfully visits to the website. And those After a complete makeover, completed training – that’s 6,000 who visited enjoyed an enhanced our catalogues are not only more people with enhanced customer online experience thanks to several engaging and inspirational – they’re service skills improvements we’ve made. also more frequent too. • 400,000 customers had their • Better navigation • Lifestyle photography is more call answered within our 20 second • V isual improvements, customer friendly target time – something our such as image magnifier • More current with coordinated Call Centre can be really proud of • More engaging photography ranges and the latest trends • E xciting incentives, • We’re producing catalogues for Spring, such as prize draws Summer, Autumn and Christmas, with It’s no wonder website visits are up teaser flyers in-between 20% on last year. Sheffield

00105663.003 WILK Annual Report 2011.indb 20 06/07/2011 16:21 Hong Kong

00105663.003 WILK Annual Report 2011.indb 21 06/07/2011 16:21 Wilkinson Asia 22|23 O8 Wilkinson Asia... Continues to establish itself as an integrated part of Wilkinsons with the same vision, values and pride in family culture.

Based in Hong Kong, Wilkinson Asia works closely with our team members Our focus is to in the UK as it continues to develop strategic relationships with our core deliver better quality suppliers around the world. products at better Working close to our major manufacturing base, Wilkinson Asia’s prices sourced primary focus is to unlock our supply from a socially chains and deliver better quality products at great prices. Social responsible base. responsibility is also high on the agenda and standards in the factories where our products are manufactured are of great Doing our bit importance to us and managed through It’s not all work – the Wilkinson an extensive audit programme. Asia Team have been doing their bit The 50+ team have really for charity. In addition to Anthony embraced the first year of trading and Nolan, two local Hong Kong charities successes to date have exceeded all benefitted from our support and one our expectations. Over the next 12 of those charities, the Children Cancer months, the team will continue to drive 20,000 sq ft of innovation Foundation, received a cheque in March improvements in cost savings, quality, Bespoke, quirky and instantly for HK$1,000,000. innovation, and delivery across all our inspiring when you walk in the door, ranges of Far East sourced products – the new office is based on the 39th floor whilst having fun in the process. of a stylish development in Kwun Tong and was officially inaugurated by Family Director, Lisa Wilkinson and CEO, Stuart Mitchell in January 2011. In March, the team hosted the third Wilkinson Asia Supplier Conference – offering valuable insight to suppliers from all over Asia of our plans for the future.

00105663.003 WILK Annual Report 2011.indb 22 06/07/2011 16:22 Dragon boat race, Rother Valley Country Park

We managed to surpass our own high Making a expectations and had an extraordinary year fundraising for our difference Charity of the Year! Anthony Nolan has been our Charity of the Year since May 2010 – and what a year it’s been!

Every 23 minutes, someone With the support of everyone across in the UK is diagnosed with blood the business – stores, head office, the cancer; for many, their only chance of DCs and suppliers – we managed to survival is a blood stem cell or bone surpass our own high expectations: marrow transplant. • M oney raised is in excess of £1.6m – There are currently around 1,600 smashing our initial target people waiting for a transplant – people like David who suffers from a • W e’ve been increasing awareness blood disorder and will need a bone through a variety of high marrow transplant in the future. profile activities This is an amazing cause and so we • O f those who are eligible, 298 team set ourselves three key goals for the year: members have joined the Anthony • We aimed to raise £1 million for Nolan register the charity It feels really satisfying to know that Pictured above: Pictured above: • We wanted to increase awareness of we’re making a difference to people’s David suffers from All Smiles! Anthony Nolan’s lifesaving work lives – people like Sorrel who received a blood disorder, six year-old Sorrel, a transplant from Anthony Nolan in he will need a bone who received a • We pledged to increase the number 2007 and is now a lively and happy marrow transplant transplant from of donors on their register six year-old. in the future. Anthony Nolan.

00105663.003 WILK Annual Report 2011.indb 23 06/07/2011 16:22 Charity of the Year 24|25

O9 Do more to raise more We exceeded our target of raising £1 million for Anthony Nolan by pulling together and going the extra mile for a great cause and we had loads of fun doing it.

Join the club did us proud. Competition between the Wilkinsons Head Office to the Blackpool The Golf Day organised by regional controllers and the senior team Store stopping at other stores along Distribution Centre 1 was a great success. was intense. This event, including our the way. Stuart Mitchell was one of the players and team members’ contribution, raised a Karin Swann attended to award prizes. total of £130,000 for Anthony Nolan. And loads more... This event raised over £800. We can’t feature every activity that Raising more in store team members took part in across the Pushing the boat out Some fantastic promotions in store business, but there have been some The Dragon Boat racing was very really got the money pouring in. Amongst crazy events which have raised fantastic popular, with Wilkinsons team members the many that were going on, Proctor and amounts for Anthony Nolan and taking parts in events in Cardiff and Gamble pledged 3p, and Unilever 5p, generated lots of awareness too. Bath. A Wilkinsons-only event was held from the sale of selected products – each To name a few, region 7 Alnwick Castle at Rother Valley in September which was promotion raised a whopping £250,000. Zip Slide raised £7,000, Region 18 support by Cadburys and was won by the Other significant promotions featured completed 110 mile walk, Ilford store HR team. The event raised over £9,000. Galaxy, Baby Bio, Kerry Direct, Wisemans hosted a daring abseil event and raised and Mr Fothergills. nearly £5,000. And it’s not just the big Running smoothly events that count, thank you to all the We had a brilliant team for the 2010 Best foot forward team members who baked cakes, face- Great North Run – Simon Hathway, Chris Karin also got in on the fundraising painted, sat in baths of beans or even Screeton, Jon Balding, Cathy Earnshaw by setting herself the personal challenge hand cuffed themselves together – and Tony O’Reilly, amongst others, really of walking 80 miles, over five days, from what an extraordinary year!

00105663.003 WILK Annual Report 2011.indb 24 06/07/2011 16:22 Reaching out to vulnerable people We’ve chosen Age UK as our new Charity of the Year and we look forward to really making a difference to many more lives.

Imagine spending your birthday Over the next 12 months we will • H andyperson Service alone – no presents, no one to eat be working with Age UK in a variety Aiming to improve the quality of life, dinner with, no one to talk to. This of different ways – from fundraising to and increase the peace of mind, of is the reality for thousands of older volunteering, there is plenty you can do older people by making their homes people in this country – but it doesn’t to get involved. So join us in reaching safer and more secure have to be this way. out to older people in your community. • Information sharing and advice Age UK is the UK’s largest charity Without sufficient funds, Age UK A simple leaflet that could make a working both for and with older can’t reach the millions of older people big difference. Placed in Wilkinsons people – which is why we’ve chosen in need. Money raised by you will go stores, they will contain information them to be our new Charity of the towards four of Age UK’s key initiatives: and advice for people who want to Year partner. They work to help older • W inter Grants – get in contact with a trusted expert people flourish. Currently they help 5 Christmas lunches and outings million people every year and by 2012 Providing funding for Christmas they aim to be helping 7.5 million. dinners and ‘get togethers’ for older people who spend Christmas alone Together we can help • C all in Time This is an essential telephone older people flourish friendship and wellbeing and enjoy life. service designed to reach isolated individuals

00105663.003 WILK Annual Report 2011.indb 25 06/07/2011 16:22 Charity of the Year 26|27 Our Local Stars

Claire Stancliffe GB Deaf Footballer david Kane Badminton Fraser Conn Cricket ross davenport GB Swimmer nicholas Boylan GB Disability Swimmer Chris Kirk GB Athlete Stacey evenden Athletics Oliver Matjasz Theatre/Drama Ben Brown Ballet Dancer Madeleine Mantock Actress emma Wilkins GB Swimmer Megan Seagrave Artistic Roller Skater Zoe priestley International Javelin Kerry Morgan GB Bobsleigh Driver Karina le Fevre Table Tennis Gold Medal patricia diplock Sign Language ryan Crouch GB Disability Swimmer Andrew Hadfi eldSlalom Canoeist Chris Kirk At the heart of the community every year, Wilkinsons gives 1% of our pre-tax profi ts to various charity and community organisations via different initiatives and schemes.

Our top three schemes are What a fantastic, lasting achievement Wilko Heroes – supporting our team Helping Hands, Local Stars and for the community of Bridgend! and the great work they do Wilko Heroes. Each gives us the Wilkinsons has donated over opportunity to help some amazing Local Stars – helping people fulfi ll £20,000, match funding team members for people and organisations. their potential different charity activity throughout 2010. Through sponsorship we support Helping Hands – helping local as many big achievers in the local • Over 50 team members were match organisations make a difference community as possible. In 2010 we funded for completing Race For Life We’ve donated over £110,000 to local supported 26 talented individuals, • Match funding was awarded to charities and community groups across including Chris Kirk. those who ran 13 miles in the England, Scotland and Wales. Chris is based at Gateshead Great North Run Here’s just a couple of examples how International Stadium, a recognised • Match Funding was also awarded we made a difference in 2010: English Institute of Sport Performance for the Anthony Nolan Three Peaks Centre, and specialises in long jump at • A £50 donation from our Headingley Challenge and The Castaway world-class international level. store helped staff from Leeds Survival Challenge Chris was fi fth in 2007’s UK rankings Metropolitan University paint a and got a second place at the 2008 To fi nd out how Wilkinson Asia has colourful mural for children in a local AAAs, surpassing the current record been supporting good causes local to primary school holder at the time. Wilkinsons is proud them, see page 23. • Bridgend and surrounding stores put to sponsor and encourage Chris in his their Helping Hands budgets to great athletics career. So roll on 2012 and watch use when 36 managers joined forces to this space! revitalise the YMCA community centre

00105663.003 WILK Annual Report 2011.indb 26 06/07/2011 16:22 Being responsible, locally and globally We take corporate social responsibility seriously – and do more to doing ensure that our actions have a positive impact our on the environment, our team, our customers, suppliers and the communities we serve. b t

At Wilkinsons, we believe, Get involved – community Local and Lively is a toolkit we’ve and continue to demonstrate, Being at the heart of the community developed to help stores better engage that you can maximise your business is key to Wilkinsons – and we continue to with, and get closer to, their community, impact whilst signifi cantly reducing offer support in several ways. including ways of really getting to the your environmental impact. And we For many years we have offered heart of what a community needs from believe that the best way to do this is both school age and adult work us – and working on ways of benefi ting by engaging our team members and placements in our stores, distribution local community groups, local charities the local community in the good work centres and head offi ce. Last year we and associations. We have been piloting we do. provided over 360 work experience this across our Scottish stores and plan Over the past year we have been placements to schools and other to extend this further. Examples include: community partners (e.g. Remploy, developing our CSR strategy so that we • Store vouchers to local groups focus on what’s important to Wilkinsons The Shaw Trust, and Business in the and set out some key commitments to Community. We also introduced an • Working with local schools work on. apprenticeship scheme to help seven • Linking up with town centre young people in one of our distribution partnerships Get involved – team members centres. Our plan going forward is to: ‘Doing our bit’ is a new team • Asking customers what is important member communication programme • Continue promoting work experience about their community introduced at the start of the year that placements to young people and links in with our ‘In the loop’ programme those who are disadvantaged to encourage team members to live • Expand our apprenticeship scheme doing more to their lives in a more sustainable way and across both distribution centres to to do the ‘right thing’ both at work and double the number of places we overcome the social home. It is focused around helping the currently offer and environmental planet, communities and sourcing more • Give young people confi dence to challenges that face responsibly. Each store or department apply for jobs supports these by completing three modern businesses. promises each year and taking part • Pilot a retail ambassador scheme for in an activity programme. store managers across one of our regions to go into schools and talk about working in retail

00105663.003 WILK Annual Report 2011.indb 27 06/07/2011 16:22 Doing our bit 28|29 1O Less is more Focus on the future Saving energy – during 2010 Corporate Social Responsibility is we rolled out our energy effi cient an ongoing commitment and in 2010 warehouse lighting project and removed we introduced objectives and targets most light switches from back of house for continued improvement. We have areas. Our efforts to reduce energy over outlined our progress below against the past couple of years have enabled us those targets we reported on last year. to achieve the Carbon Trust Standard. Reducing waste – our continuing efforts this year include reviewing our waste to improve the recycling and the Reducing our carbon revenue we gain. Our operational waste 2010 progress increased to 45,000 tonnes, (over half footprint was from replacing fi xturing in stores being rebranded). Increase the proportion of waste We achieved this with improvements to We have been centralising data to from our operations that we divert our processes and practice. We reset improve measurement and reporting, from landfi ll to less than 50% by ✔ the target to 85% which shows that more than 80% of our 2013 based on 2006 levels waste was recycled. Our plans for 2011 include more improvements to waste Reduce our transport emissions We achieved this with double deckers recycling from operations and our store by 15% by 2013 compared with and fuller lorries. We reset our target development programme. 2006 levels ✔ to 25% Cutting down on mileage – our double decker fl eet grew a further 50 trailers to 110, meaning less lorries Reduce our energy emissions We achieved this by various energy and less mileage. We’ve also been from our buildings by 15% by 2013 effi ciency projects. We have reset our increasing our lorries that collect goods compared with 2006 levels ✔ target to 5% based on 2009 levels from our suppliers, again, helping to keep our lorries full and reducing This is a new target for 2011 following Reduce water consumption by 10% CO emissions. Our fl eet travelled just the introduction of water monitoring 2 by 2015 compared with 2010 levels over 22 million miles (35.5 million km) across our estate which represents 5.77km/sq ft, a slight reduction on the previous year. Sourcing responsibly Sourcing more ethically Sourcing our products in a This is a new target. We are rolling out responsible way is key to our vision Our Own Brand packaging is to be over the next three years an industry and values. recyclable by the end of 2014 standard ‘recyclability’ label for Most of our products are now our packaging ordered directly through our Wilkinson Asia buying offi ce, which is committed Improve and eliminate excessive to a programme of supplier monitoring. packaging (primary) across our This is a new target This involves visiting all suppliers Own Brand products by 2014 and factories to check that working through optimisation conditions meet health and safety standards and that all team members Sustainably source our Own Brand are treated well and that no children solid wood product where possible This is a new target are working for them. – 20% by 2014 We are also working on ways to reduce the amount of packaging we This target has been partially met. need through a range of initiatives All suppliers of Own Brand Our Wilkinson Asia buying offi ce and also its recyclability. In 2010 we products to be audited by 2013 ✔ took over supplier management in 2010 introduced the ‘On pack recycling label’, an industry standard label, to be applied across our ranges as we review them each year.

00105663.003 WILK Annual Report 2011.indb 28 06/07/2011 16:22 Summary of the year despite another year of tough trading conditions, made worse by the exceptionally severe weather in the lead up to Christmas, we delivered a credible sales growth of 0.2% and a small decline in comparable or like-for-like sales of 1.3%.

Customers facing a decline in Our financial position remains strong, Livingston, Hamilton and Ayr, bringing their disposable income shopped less with the net cash inflow from operating our total to nine. We increased our frequently and more carefully, seeking activity of £88.7m this year compared with coverage in the south with new stores in out value, trading down where possible £124.4m last year. At the year end we had Camberley, Swanley, Newbury, Harrow and concentrating on essential rather £19.5m net funds in the bank compared and Reading. In addition, we extended than discretionary spending. to net funds of £17.9m last year. our reach to the east and west with stores The economy slowed in the last at King’s Lynn (a relocation), Telford and quarter of 2010 but our fourth quarter Our new brand Exeter as well as in the Arndale Centre in performance showed a good recovery We were very pleased to have the heart of Manchester. Our programme in late December and January after achieved our target of rolling out our new of new stores for 2011 will be of a similar the difficult period in early and mid brand to 80 stores in the calendar year size and we have already secured a December. We recorded the highest 2010, our 80th year and will continue this number of exciting sites. ever total sales in the Christmas week, on roll out at the same pace for the next Christmas Eve and exceeded the record two years with about 90 stores being Distributing our products for weekly sales from a single store. rebranded each year. The 80 rebranded After the successful introduction Our continued focus on our stores delivered an additional 4% of sales of Customer Pulled Replenishment investments in stores, supply chain, during the year at these stores. (CPR) in 2009 we have continued to people, infrastructure and on reducing improve the way we supply our stores New stores our cost to serve, meant that we were including the reorganisation of stock in New stores were opened in able to maintain our operating profits at our distribution centres. This is already 14 communities and we extended £57.8m. Although disappointing when allowing us to deliver stock to our stores Frenchgate, in Doncaster, following the compared with our record profits of in a more efficient, aisle-friendly way and closure of our other Doncaster store. £62.9m in 2010, this represents a strong will allow us to improve the service we All the new stores opened during the performance given the trading conditions offer our stores and our customers. year were based on our new brand and during the year and the pressures arising format. We continued our expansion from commodity prices, the increase in north of the border with five new stores VAT and the dollar exchange rate. in Scotland; Kilmarnock, Greenock,

00105663.003 WILK Annual Report 2011.indb 29 06/07/2011 16:22 In conclusion 30|31

Nottingham 11 Senior appointments Of course, our success and Frankie Adams was promoted to achievements during the year would not Head of Buying in September 2010. be possible without the hard work and Frankie joined the business from ASDA dedication of our 23,063 team members, in September 2009 to take up the role our suppliers and our committed of Category Buying Manager for FMCG shareholders. You’ve all played a big and since his promotion to Head of part in our tremendous achievements Buying has been instrumental in driving in what has been a difficult year for the forward our category buying review retail industry. process. Ian Cutts, was promoted to I look forward to another year of progress in 2011/12. Head of Property in September 2010 Wilkinson Asia and has led the successful rebranding The Wilkinson Asia team has grown programme as well as seeking out new from two members when we opened store opportunities. Ian has been with our office in June 2008 to over 50 and Wilkinsons for over 26 years in a number in January 2011 the team moved to a of retail and financial roles. new office in the Kwun Tong area of S R Mitchell Chief Executive Officer Hong Kong. The team can now deliver Charity work our planned improvements in product Our chosen charity for 2010/2011 sourcing by taking control of the quality was the Anthony Nolan Trust and we set of our products and providing better ourselves an ambitious target of raising prices for our customers. By building £1m during the year to May 2011. stronger relationships with suppliers, Thanks to the fantastic fundraising they are able to improve our ethical and environmental standards. efforts of our team members and the support of Procter & Gamble and Wilkinsonplus Unilever, two of our biggest suppliers, Our internet and catalogue sales we had already met that target by the through Wilkinsonplus had a successful start of February 2011, three months year following its relaunch in March earlier than expected. As well as taking 2010. The level of sales and the range of part in fundraising, 298 team members products available online and from the have joined the Anthony Nolan bone catalogue have continued to grow. marrow donor register. This support will make a real Our people difference for patients waiting for a We introduced an enhanced team bone marrow transplant. I would like to member forum ‘In the Loop’ during thank Karin Swann personally for her the year to ensure all team members leadership on this fantastic campaign. are informed of the development of the business. We continued to run our internal talent development programme, Aspire, and during the year 38 managers D oing more to attended one of our junior, middle or overcome the social senior management courses. We are also immensely proud to have achieved and environmental our Investors in People status for the challenges that face 14th consecutive year and especially proud to have achieved the Gold Award, modern businesses. which recognises our commitment to our team members, for a third year.

00105663.003 WILK Annual Report 2011.indb 30 06/07/2011 16:22 Financial review Consolidated profit and loss account PERIOD ENDED 28 JANUARY 2011

2011 2010 £’000 £’000

Turnover 1,559,384 1,556,210 Cost of Sales 927,786 941,410

Gross profit 631,598 614,800 Operating expenses 573,831 551,851

Operating profit 57,767 62,949 Interest receivable and similar income 3,260 2,476 61,027 65,425

Interest payable and similar charges 203 474 Profit on ordinary activities before taxation 60,824 64,951

Tax on profit on ordinary activities 20,676 22,208 Profit on ordinary activities after taxation 40,148 42,743

00105663.003 WILK Annual Report 2011.indb 31 06/07/2011 16:22 Financials 32|33

Castle Douglas 12

Consolidated balance sheet AT 28 JANUARY 2011

2011 2010 £’000 £’000 £’000 £’000

Fixed assets Tangible assets 249,288 247,188

Current assets Stocks 132,614 116,065 Debtors 24,837 20,572 Cash at bank and in hand 33,300 37,866 190,751 174,503

Creditors: amounts falling due within one year (201,657) (195,452) Net current liabilities (10,906) (20,949) Total assets less current liabilities 238,382 226,239 Creditors: amounts falling due after more than one year (7,566) (13,780)

Provisions for liabilities (9,189) (8,698) Net assets excluding pension asset 221,627 203,761 Pension asset 16,737 8,690

Net assets including pension asset 238,364 212,451

Capital and reserves Called up share capital 33 34 Other reserves 171 170 Profit and loss account 238,160 212,247

Shareholders’ funds 238,364 212,451

00105663.003 WILK Annual Report 2011.indb 32 06/07/2011 16:22 Consolidated cash flow statement PERIOD ENDED 28 JANUARY 2011

2011 2010 £’000 £’000

Net cash inflow from operating activities 88,743 124,371 Returns on investments and servicing of finance 68 41 Taxation (19,940) (16,680) Capital expenditure (48,658) (46,343) Equity dividends paid (11,515) (6,766) Increase in cash in the period before financing 8,698 54,623 Financing (13,264) (26,254) (Decrease)/increase in cash in the period after financing (4,566) 28,369

Reconciliation of net cash flow to movement in net funds/(debt) (Decrease)/increase in cash in the period (4,566) 28,369 Cash flow from movement in debt 6,214 16,214 Movement in net funds in the period 1,648 44,583 Net funds/(debt) at start of the period 17,872 (26,711) Net funds at end of the period 19,520 17,872

00105663.003 WILK Annual Report 2011.indb 33 06/07/2011 16:22 Financials 34|35

Ayr

Stuart Mitchell Lisa Wilkinson Chief executive Offi cer Family non-executive director

Karin Swann Ian Ellis Family non-executive director Chief Financial Offi cer

Secretary Auditors The fi gures and fi nancial information for the Ian Ellis (contact Cooper Parry LLP fi nancial period 2010/11 and comparatives Mary Edgerton) 14 Park Row do not constitute the statutory fi nancial Nottingham statements for those periods. The fi nancial Registered offi ce statements for the fi nancial period ended NG1 6GR JK House 28 January 2011 will be fi led at Companies Roebuck Way Bankers House following the Annual General Manton Wood Lloyds TSB Meeting on 22 July 2011, and include the Worksop Bank Plc auditors’ report which was unqualifi ed and Nottinghamshire Royal Bank of neither drew attention to any matters by way of emphasis nor contained a statement S80 3YY Scotland Plc under section 498 (2) or (3) of the Companies Registered number Act 2006. 0365335 (England & Wales)

00105663.003 WILK Annual Report 2011.indb 34 06/07/2011 16:22 JK House, Roebuck Way, Manton Wood, Worksop, Nottinghamshire, S80 3YY Tel: 01909 505505 Fax: 01909 505777 [email protected] www.wilkinsonplus.com

Registered number 0365335

Rochdale

00105663.003 WILK Annual Report 2011.indb 35 06/07/2011 16:23