Tesco sees online sales rise more than 60% over Christmas from pre-Covid levels
Tesco: digital investment pays off
Tesco’s online sales remain ‘significantly ahead’ of pre-Covid levels in the weeks leading up to Christmas, posting comparable growth to 2019 of more than 60%, giving the retailer the highest share of groceries for 22 consecutive periods.
As with many other retailers, the Christmas period proved to be strong for Tesco, with department stores seeing growth of 4.6% over two years and online a whopping 64.4%.
Due to these stronger than expected sales to date, Tesco says it now expects retail operating profit to be slightly above the top of our previous guidance range of 2.5. to £2.6 billion. He also expects Tesco Bank’s operating profit to be between £160m and £200m, due to the effect of more favorable economic forecasts on our provision for expected credit losses.
Ken Murphy, General Manager, said: “We are delighted to have been able to help our customers have a great Christmas. Despite growing cost pressures and supply chain challenges in the industry, we continued to invest to protect availability, doubled down on our commitment to delivering great value and delivered our strongest festive lineup ever. This has placed us in a strong position to meet customer needs as, once again, COVID-19 has led to a greater emphasis on celebrating at home. As a result, we outperformed the market, increasing our market share and strengthening our value position. »
Murphy adds: ‘The whole Tesco team are at their best when delivering to customers and we are truly delighted that so many customers who were new to Tesco during the pandemic have stayed with us – either continuing to make online shopping or by becoming regular in-store customers. This reflects the hard work and commitment of our fantastic colleagues and I want to thank each and every one of them for the incredible contribution they make every day.
Nick Everitt, Consulting Director, EMEA, Edge by Ascential, comments: “Data from Edge Retail Insight, Edge by Ascential’s industry-leading retail research and data forecasting portal, industry, show that in 2020, Tesco’s e-commerce sales grew by 51% and another 19%. % in 2021 based on strong comparatives.
Everitt continues, “This follows a notable increase in strategic digital investments under the leadership of CEO Ken Murphy. Pressure will however be high for Tesco to maintain momentum, particularly given the challenges associated with rising economic and living costs, as well as ongoing supply chain issues.
Everitt said: “Tesco’s Clubcard loyalty program has proven itself with customers and it is clearly keen to build on this success with its newly launched Clubcard Pay+, a new debit card giving its 20 million Clubcard members the ability to allocate and budget grocery expenses to the retailer.”
According to Everitt, Tesco will have to continue to differentiate itself from its supermarket rivals. This includes continuing to invest in developing its frictionless experience through an expansion of its checkout-less stores, as well as strengthening its overall omnichannel offering.
Everitt concludes: “With a growing appetite for on-demand groceries, Tesco teamed up with super-fast delivery specialist Gorillas last year on a trial programme, promising a service 10-minute delivery to customers looking for convenient and fast delivery to their doorstep. The deal will help Tesco gain valuable insights into this growing market, with new partnerships and expansion likely as Tesco seeks maintain its leading position in the market.