Tuesday, August 24, 2010

Tesco launches new initiative

In the race to keep its market share, Tesco is constantly trying to find new ways how to increase sales. The the initiative that the retailer unveiled will allow customers to order groceries online then pick them up without having to leave their cars...they just drive through give their name and order number and will be able to pick up the groceries.

The trial is to launch at the Tesco Extra store in Baldock, Hertfordshire, and will be promoted with leaflets distributed in-store and via online deliveries locally. Tesco hopes that this initiative will boost its online shopping, which to date generates sales of about £2.1bn and profits of £136m. This service, if it picks up, will also decrease the delivery costs and increase the potential profits of this service.

Who is expected to use this service mostly? The supermarket expects the service to be used by busy mothers, as well as young professionals who cannot commit to waiting at home for delivery. The need flexibility but at the same time cannot afford the time to shop instore. Customers will be able to order their shopping via, choose the 'click and collect' option and book a two-hour collection slot.

Unfortunately the service is not provided free of charge, which might affect the success of the project. A flat fee of £2 will be added to the bill. However the £2 could still be worth it for time pressed people.

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