Tesco Extends Same Day Grocery Click & Collect Service

Tesco announced yesterday that it was extending its Same Day Click & Collect service, allowing customers to pick up their online groceries at an earlier time.

Shoppers can now place order before 9am and book a two hour window to collect their groceries from midday onwards. The new slot is in addition to its existing offer, where customers can order by 1pm to pick up from 4pm.

The service will now be available from more than 300 of its stores across the UK.

Tesco also revealed Click & Collect is becoming increasingly popular, with customers using the service in the past year up 20%. The Same Day collection option accounts for almost 10% of orders.

Adrian Letts, Managing Director of Online at Tesco, said: “More customers than ever are choosing to use our grocery Click & Collect service which is we’ve decided to introduce a new same day collection slot.

“We offer a range of ways to shop with Tesco and Click & Collect means customers can choose to pick up their shopping at a time and location that suits them, without having to hit the aisles themselves.”

Tesco has been ramping up its multichannel  proposition in recent months with it also now offering same-day home delivery to customers in London and the South East.

Last month, Tesco’s Chief Executive Dave Lewis said that the group was planning to significantly ramp up its online activities once it has acquired Booker. The proposed deal will more than double the number of potential click & collect locations for internet orders to almost 8,000 with Tesco viewing this as a major opportunity to challenge rivals, especially Amazon.

NAM Implications:
  • Where at: Whilst a 3hr Click & Collect service via 8,000 pickup points will undoubtedly give Tesco a temporary competitive advantage, it might be useful to place this in context: In Germany for example, DHL has 250,000 lockers and 20,000 parcel shops while in France, 60 million parcels are sent to pick-up points or lockers.
  • Where headed: Click & Collect can provide a solution for a key issue online shoppers that find it difficult to be available for home delivery, and obviously the market will evolve to meet this need, as will 3hr availability shrink to match its consumer appeal and online economics.
  • Effect on you: Best to assume universally available Click & Collect at competitive prices, or free.
  • Action: More important for suppliers to ensure optimisation of all routes to consumer, personal Bricks & Mortar, delivered and Click & Collect…