Wednesday, 16 April 2014

Tesco Plans 'Around 50' Underground-Style Collection Points

Supermarket giant Tesco is planning to introduce another 50 collection points similar to those it has begun testing at London Underground tube stations.

The supermarket said the it would reach the 'non-store' collection point target by February next year and that it would also add a collection service to another 100 stores.

The strategy illustrates the grocer's commitment to a multi-channel model amid concerns that selling food online is less profitable than selling though large supermarkets. Tesco said in January it would launch at six underground sites and it has also tested in other locations such as 'Park and Ride' car parks.

It said today that its grocery home shopping business continued to grow 'strongly'. It said it currently offered collection through 260 Click & Collect points and that it has over 200,000 shoppers which had subscribed to the Delivery Saver scheme.

It also revealed that its dotcom-only warehouse in Erith - one of its so called 'dark' stores - enabled staff to pick products almost three times faster than they did in stores. It said that was an improvement on the Crawley and Enfield dotcom warehouse.

Tesco this morning reported a 6% drop in group trading profit to £3.3 billion. It has faced increasing competition from the likes of Aldi and Lidl alongside rivals Asda and Morrisons.

Chief executive Philip Clarke was forced to defy his critics, telling newswire Reuters that he had 'no intention of going anywhere.'

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