Tesco Case StudyTesco, well known as the leading British food retail group with a presence elsewhere in Europe, Asia and the USA, was also an online pioneer. As this case study on Tesco.com shows, retailer Tesco is generally recognized as the largest online grocery store in the world and has an annual turnover of £1 billion in the UK and has launched in other countries internationally and is diversifying into non-food categories.Tesco.com Online sales 2006/2007 As of September 2007 online sales in the first half of the year were £748m, an increase of 35% on a year-on-year basis, and profit increased by 62% to £54.7m. Tesco.com now receives over 300,000 orders every week. Further details on online sales and non-food sales are also provided in the main annual report 2006/2007. On page 23 it states: Today the tesco.com model operates in the United Kingdom, the Republic of Ireland and South Korea. Food sales online have surpassed £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 completed every week. In the UK, almost 1,860 vans operate across 294 stores. At 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 collecting our customers' orders from 6am. A record number of 1.3 million shoppers chose tesco.com to deliver gifts and groceries over the Christmas period and to ensure they were all collected successfully, our staff started collecting even earlier, at 4am. Tesco.com has around 9,000 pickers, mostly in existing stores, but a dedicated delivery shop has opened in Milan Croydon.Tesco.com online sales update 2005Sales on Tesco.com, the UK market leader in shopping from home, are up 32% year-on-year, but still only account for over 3% of its UK sales of £32.7 billion! Tesco said it has 750,000 repeat customers and 200,000 online orders a week, for a total turnover approaching £1 billion Update: Tesco Direct launchRead Tesco Direct launchIn 2006, Tesco launched Tesco Direct to rival catalog retailers such as Argos. Over 8,000 products will be available from beds and sofas to kitchenware, appliances, 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 catalog and then order it in three ways:
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