Tesco Case Study Context
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 ...