Tesco Seeks to Compete with AmazonFresh, Goes Same-Day Grocery Services


Tuesday, September 20, 2016 at 1:30PM – It’s not about which retailer will surpass Amazon, but who are the ones that can at least keep up with it. The US e-retail leader is not only having competitors dig deep to keep market share in the US, it is happening abroad as well. In the UK, supermarket giant Sainsbury just launched an initiative in July to offer same-day grocery delivery in 30 ares in England before year’s end. Now, it appears store chain Tesco is right behind them with a same-day service of its’ own to defend off Amazon Fresh from luring its’ customer base away.

The Daily Mail recently reported that Tesco will be rolling out a same day ‘click and collect’ service for groceries from 300 stores throughout the UK. With this many stores, Tesco should generate the volume it takes to make the service work. Scale is vital with any same-day service, as the volume will ultimately make it worth while. For all orders placed by 1pm, shoppers will be able to pick up from their local store after 4pm the same day. The cost of the service will be £2 for a two-hour collection slot from Monday to Thursday, and £3 for slots on Friday or Saturday. Another option regarding Tesco’s click and collect is that customers can either choose a 4pm to 6pm, or 6pm to 8pm collection window slot for all six days.

“We know time is valuable to our customers and they expect more convenience and choice than ever before in how, when and where they do their grocery shopping”, Tesco said in the article. The retailer also said relative to service convenience, “Our same day grocery click-and-collect service is available at nearly 300 stores across the UK and means our customers can get their shopping at a time and location that is convenient for them.” As shoppers have become more comfortable and secure with online purchasing, retailers now seek to position their stores so customers can buy right where they are. Whether they are at the coffee shop, or at home, they can utilize their mobile device to buy online and them pick it up from a retail store.

In today’s market, shoppers are also trending to use Same-Day Delivery to have their online items dropped off at their front door. This is what Amazon has established in the 27 markets in the US, including hometown Seattle, San Francisco, San Diego, Charlotte, New York, Philadelphia, Chicago, Atlanta, Richmond, Orlando, and many more. Wal-Mart, the world’s largest retailer, has launched same-day grocery delivery in a few major US cities to begin with in the last recent months. It makes sense for any grocery store retailer to offer same-day delivery, as shoppers have a constant demand for food products and would enjoy not have to leave their home to get dinner.

Tesco’s competitor, Sainsbury, announced launching a same-day grocery delivery program that will span over 30 areas in England by Christmas of this year. When the grocery store chain use to only provide grocery next-day delivery as an option, now its’ customers can get their products the same day. Same-day grocery delivery will be offered for orders placed online by noon, and will be dropped off by 6pm that day. Like Tesco, Sainsbury will have a pick-up option that will be ready to pick up from 4pm as well .

As other companies are doing, Tesco is implementing this strategy to stay competitive with new Amazon Fresh, which offers same day delivery on 130,000 goods. It takes an established system to optimally delivery that many online items per day. A Same-Day Courier like A-1 Express can partner with any grocery store chain or e-based retailer that wants same-day delivery to become a staple service. from their operation. The Houston Courier has the national footprint and logistical expertise to develop a variety of same-day solutions for any company to grow their business and compete with Amazon.

Reference: 8.24.16, www.dailymailcom, Sean Poulter, Tesco is to offer a same day ‘click and collect’ service for groceries as it moves to fight off threat from Amazon

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