Tesco continues to dominate UK online grocery

Tesco announced their preliminary results for 2013/14 today with “… Strong UK growth in online grocery +11%”

We think this could be a little below the overall market increase on food sales per the ONS statistics which show an increase of around 12.5% as between 2012 and 2013.

Some say they have nearly 50% of the UK online grocery market which we find difficult to accept but they are undoubtedly the number 1.

In TOTAL grocery market share Kantar World Panels latest stats for the 12 weeks to 2 March have the top 5 as Tesco (28.6%) Asda (17.4%) Sainsburys (16.5%) Morrison (11.1%) and the Co-op (6.1%).

We guess the top 5 online would include Waitrose and Ocado with neither the Co-op nor Morrison, at present.

Tesco click and collect are following Asda in setting up collection from 6 London tube station car parks from temperature controlled vans at Osterley, Newbury Park, Rayners Lane, Finchley Central, Arnos Grove and Cockfosters.

This follows Asda’s similar ventures at East Finchley, High Barnet, Harrow & Wealdstone, Highgate Stanmore and Epping.

Waitrose are aiming, a little longer term, for the temperature controlled locker facilitiea which we think could be the future! With a total of 270 London tube stations there’s a way to go yet!

Here are Tesco’s words, extracted from their results announcement, on their online sector

Clicks & Bricks

Our grocery home shopping business continues to grow strongly. We now have over 200,000 delivery saver subscribers and over 260 Click & Collect locations – including our first trials at six London tube stations. We are planning to launch around 50 non-store collection points in 2014/15, as well as adding the service to another 100 stores. We continue to build capability through the automation of ‘goods to person’ at our new Erith facility. This enables us to pick products almost three times faster than in our stores – an improvement on our Crawley and Enfield dotcom-only stores. Our new home shopping vans will be multi-category enabling us to fulfil general merchandise orders and will feature collapsible racking to carry larger items from our new general merchandise range. We will also focus on providing helpful, friendly and personalised customer service at the doorstep, with the roll-out of new training to all customer delivery assistants in 2014/15.

We have also committed to sharper prices this year for our grocery home shopping service, including market-leading delivery pricing and free Grocery Click & Collect. We will continue to focus on our most loyal customers, with a no-risk guarantee and added-value services on our Delivery Saver subscriptions.

The strong top-line growth of online general merchandise and the actions we have taken, such as tightening our stocked range, have reduced the level of financial losses in this business. We now have over 1,750 Click & Collect locations and plan to increase this number significantly. Our product offer on Tesco Direct has grown to over half a million lines, supported by 50 market place ‘Sellers at Tesco’. Clothing online continues to perform strongly, with sales growth of nearly 60% in 2013/14.

This year we launched the Hudl, our very own tablet. It was recently named winner of the ‘ReThink Retail Technology Initiative of the Year’ and we plan to launch a second device later this year. Blinkbox services continue to grow and we launched Blinkbox books last month with hundreds of thousands of books now available to download.”

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