Tesco has upped its delivery offer with the introduction of same-day click and collect.
The UK’s largest supermarket now offers collection after 4pm for orders placed before 1pm Monday to Saturday, excluding bank holidays, at 261 Tesco stores and 36 locations outside the store. The service costs £2 between Monday and Thursday, and £3 on Fridays and Saturdays, for orders worth at least £40. Orders under that threshold cost £4. Shoppers in areas where the service is available can book a same-day slot when they place their grocery order and see it available as a delivery or collection option.
The extension to Tesco’s click and collect service brings its service into line with competitors including Asda , and enables it to compete with the convenience of Amazon Fresh. Asda offers same-day collection from 250 stores and Sainsbury’s is currently trialling the service. Amazon Fresh does not offer collection but offers delivery as quickly as an hour in the limited Greater London area where it is as yet available. Tesco offers same-day click and collect for free to holders of its Delivery Saver, while Amazon’s service is only available to members of its Prime subscription scheme.
The move also underlines the importance for supermarkets of making their online grocery service as convenient as possible in order to appeal to time-pressed shoppers.
John Pincott, managing director, EMEA of Kibo, said: “This is a huge step forward for Tesco and the other major players, both online and offline, who will undoubtedly have to follow suit. Failure to do so will result in a fall in revenue as demanding and time-constrained customers shop elsewhere.
“The test for Tesco will be how the service is implemented and the availability of stock. It is no good saying same-day collection is available when the customer can only purchase 50% of what they need. To be able to achieve this – or at least offer a suitable alternative – retailers need a sophisticated order management system in place that provides an overview of all stock, not just what is available in that particular store. The fact that Tesco is working with perishable goods makes it even more complex.”
Tim Reay, Head of Grocery, Salmon , said: “The announcement that Tesco is to introduce same-day click and collect services, across 300 of its stores, comes at a time when the top-four supermarkets are struggling to regain market share; Asda, Sainsbury’s, Tesco and Morrisons all posted a year on year decline in sales in the 12 weeks leading to August 14th. Traditional retailing is long gone and retailers must now understand that a strong ecommerce offering is no longer an option but requirement in the increasingly competitive food industry.
“With the UK launch of Amazon Fresh, grocery retailers were introduced to a set of completely new challenges and Tesco appears to have also recognised the immediacy that time poor consumers crave. Food grocers must re-assure shoppers that their digital offering doesn’t just sit parallel to in-store but amalgamates the two together. This includes everything from back-end systems keeping warehouses and distribution centres aligned to the order process, to an intuitive front-end that promptly directs the shopper to their desired product. Each shoppers’ individual interaction must be quick, user-friendly and relevant. Daily click and collect will enable Tesco to compete with Amazon’s strong online offering and could prove to be the difference in the ongoing retail wars between the ‘big four’.”
Adrian James, CCO at Walkbase, said: “This announcement highlights how supermarkets are fighting back against ecommerce grocery sellers, and turning to one factor to win back the market’s attention: convenience. Tesco has taken this a step further by offering something online competitors can’t compete with – a physical experience.
“In today’s digital age, consumers are continuously shifting towards the most convenient way of shopping. Online stores have gained a lot of advantages, and now it seems those retailers who are able to create a fluent path between online, in-store and mobile are growing in terms of the number of customers. Retailers can take this a step further by using wi-fi analytics to provide a more personalised, efficient shopping experience – matching services provision to real data, rather than just ‘gut feeling’. Plus, customers who opt-in can receive push notifications regarding offers based on their live locations, as well as personalised adverts.
“As the retail landscape continues to evolve, it will be those retailers who match physical convenience with technological efficiency who will gain an edge over online retailers. Only then will the high street dinosaur stand a chance at biting back.”
