Tesco doubles online capacity

Click and collect now represents around a quarter of online orders

In a Q1 trading statement, Tesco has revealed that responding to the significantly increased demand for its online offer, it has grown that part of its business as quickly as possible. In just five weeks it doubled its online capacity and is now fulfilling over 1.3 million orders per week.

Across the quarter as a whole, it delivered 12.6 million orders, including to a priority list of 590,000 vulnerable customers. In addition to providing more delivery slots for customers, it also increased the availability of a click and collect service, which now represents around a quarter of online orders. As a result of the changes, the retailer’s online grocery business has grown from c.9.0% to over 16.0% of its total UK sales.

Tesco originally set out a plan to double the capacity of its online business in the medium term, including the development of at least 25 urban fulfilment centres (UFCs). Whilst the construction of its first UFC in West Bromwich Extra was paused in March due to government restrictions, it was able to complete the work in June and the first customer order will be delivered next month.

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The Company is well positioned to capture market growth beyond its original ambition and will continue with the roll out of the UFC programme as it responds to the accelerated shift in customer demand.

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