In the week that official ONS figures show online food sales took a record share of the market – at 5.8% of all retail sales in the sector – how are grocery retailers responding to the change? We report on what Tesco, an Elite retailer in IRUK Top500 research, and Iceland, a Top250 retailer, said, as they both gave an update on their figures today.
Tesco: streamlining its business
Tesco today said its grocery home shopping business “performed strongly in the quarter”. Transactions and basket size both grew, year-on-year, as more customers adopted its delivery saver subscription scheme.
“We are continuing to roll out further innovations including the Spoon Guru lifestyle and dietary search filters and improvements to our website and customer application,” it said.
The update came as the retailer reported a 1.8% rise in like-for-like sales – which strip out the effect of store openings and closures – in the first quarter of its financial year, the 13 weeks to May 26, compared to the same time last year. In the UK and Republic of Ireland, sales rose by 3.5%.
During the quarter the retailer announced that it was to streamline the way it organises general merchandise sales alongside groceries. The retailer is closing its Tesco Direct operation on July 9. Grocery customers can already buy merchandise such as toys, homeware and cookware on tesco.com and the retailer says it will “selectively build on this offer, creating a simpler online experience for customers.
Chief executive Dave Lewis said: “Our growth plans are on track and we are pleased with the momentum in the business. We remain well-placed to serve our customers better and deliver on our medium-term financial ambitions.”