Tesco said today that its UK online grocery sales surged after customers used its click and collect service and it opened more online warehouses.
Sales in the year to February surged 12.8 per cent to £2.3 billion, it said this morning. By comparison, rival Ocado said in February its sales had increased 11.4 per cent to £716 million in 2012.
Tesco has five dedicated online grocery delivery warehouses after opening Crawley in January and another site is scheduled to open in Erith near Dartmouth later this year.
It has also boosted its Tesco Direct service, which sell non-grocery products, from 75,000 items at the beginning of the year to 300,000 in April.
Tesco chief executive Philip Clarke said on his blog: 'For many years, we bought land and developed it to build stores, mainly big stores. [The Strategy] served us very well and was part of our success in the 90s. A year ago I said we weren’t going to do as much of that anymore. The large stores we have are great and we are doing a lot of work to make them more vibrant and relevant for today’s customers, but we won’t need many more of them because growth in future will be multichannel – a combination of big stores, local convenience stores and online.'
It said 120,000 customers have signed up to its Delivery Saver service accounting 25 per cent of weekly sales. It also said it has 150 locations at stores around the UK for its click and collect service with plans to double the number. It has 1,500 click and collect sites for its Direct division.
Tesco's global online sales rose 13 per cent to £3 billion in the year.
Tags: Tesco, Tesco Direct, Delivery Saver, click and collect, Ocado, online food delivery, online food ordering, supermarket, online sales, internet sales, ecommerce
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