Tesco Case Study

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Tesco Case Study

Tesco, well known as Britain's leading food retail group with a presence also elsewhere in Europe, Asia and the United States has also been a pioneer online.

As this Tesco.com case study shows, retailer Tesco is generally recognized as the worlds largest online grocer and it has an annual turnover of £1 billion online in the UK and has launched in other countries, internationally and is diversifying into non-food categories.

Tesco.com 2006/2007 online sales

By September 2007 online sales in the first half of the year were £748 million, a 35% year-on-year increase, and profit increased by 62% to £54.7 million. Tesco.com now receives over 300,000 orders each week.

More details on online sales and non-food sales details are also provided in the main 2006/2007 annual report

On p23 it reports:

Today the tesco.com model operates in the UK, the Republic of Ireland and South Korea.

Online grocery sales have exceeded £1 billion for the first time in the UK alone. We have an active customer base of 850,000 and more than 250,000 orders are now being completed each week.

In the UK, nearly 1,860 vans operate out of 294 stores. In our Newcastle store our service is so popular that there are now 18 vans delivering to local customers. Drivers deliver between 9am and 11pm, and our staff start picking our customers' orders from 6am.

A record-breaking 1.3 million shoppers chose tesco.com to deliver their presents and groceries over Christmas, and to make sure that these were all picked successfully, our staff started picking even earlier, at 4am.

Tesco.com have around 9,000 pickers, the majority in existing stores, but one specific delivery store has been opened in Croydon.

Tesco.com 2005 online sales update

Sales at Tesco.com, the UK market leader in home shopping, rose by 32% year-on-year, but they still only represent over 3% of its UK sales of £32.7bn! Tesco said it had 750,000 regular customers and 200,000 orders a week online giving a total turnover approaching £1 billion

Update - Tesco Direct launched

Read Tesco Direct launched

In 2006, Tesco launched Tesco Direct to rival catalogue retailers such as Argos.

Over 8,000 products will be available from beds and sofas through to kitchenware, electricals, cameras, bikes and golf clubs - giving customers more products at great Tesco prices than they have ever had access to before. Customers can choose the product they want on a new website or from a new catalogue and then order in one of three ways:

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