Tesco Partners with Brands to Grow Online

Tesco is partnering with its suppliers more closely to drive growth through the online channel. Through collaboration with the online teams from leading suppliers the retailer says it has been able to identify new test and learn initiatives and jointly find ways to increase basket size, Tesco’s Head of Online Business Services Propositions Samantha Hogarth told attendees at My Digital Shelf’s Online Grocery Summit in London.

This year the UK’s online leader plans to introduce a new responsive website to support its 5 million weekly online customers. The new site will have an improved search engine to help shoppers find items more quickly and easily. Tesco is also leveraging online to test the impact of range extensions for customers whose orders are delivered from its darkstores – starting with just one category for now. This is part of a broader drive to increase operational efficiency by increasing the average online order value. To support this, suppliers are delivering the large or bulky items to Tesco’s CFC just prior to delivery.

All of these initiatives are looking to drive growth in the channel, following a slower year for online in 2016 according to LZ Retailytics figures. Tesco has also stepped up its services to shoppers in recent weeks and months, offering same day click & collect from 130 stores and introducing monthly delivery saver plans, which were previously only available to purchase for three, six or twelve-months.