Tesco plans to complete the roll-out of its online grocery offering to all its 12 international markets (excluding the US and Saudi Arabia) by January 2014. The UK-based retailer will finish the introduction of its grocery e-commerce with the launch of its Turkish site, pencilled in for January next year.
Tesco will introduce its online operation to Thailand on 4 April, following earlier trials and will launch in Shanghai, China in June or July, said Frans Falize, international dotcom director. Falize added that the online business has the potential to operate in 50 Chinese cities, depending on the success of the Shanghai launch.
The retailer’s domestic e-commerce business is used as a template in expanding the online business which “allows us to launch in any market within three to six months, depending on planning restrictions,” Falize said. The model sees the service start in a country’s capital city using local stores as hubs, and is then replicated nationwide.
Despite using the UK business as a blueprint, Falize made reference to considerations that have to be made for each locality. The retailer’s delivery vans in Bangkok are smaller than those in the UK to allow them to better cope with traffic congestion, and its one-hour delivery slots have been extended in this regard. The vans also carry better refrigeration systems to keep groceries cool in the hot Thai climate.
Turkey will be the last of Tesco’s 12 international operations to see the integration of an e-commerce offering. Currently, Tesco customers can opt for online shopping in the UK, Ireland, Korea, Czech Republic, Poland, Slovakia, Hungary and Malaysia.
The roll-out of the service will no doubt take a chunk out of the £492 million technology investment pot designated by group CEO Philip Clarke. The investment figure has tripled since 2010. (28 March)
© 2013 - ESM: European Supermarket Magazine by Sadhbh Connor
