Tesco’s online business grows 90% in three months, driving profits up 29%, as habits shift again – Industry
Tesco: online and local stores drive growth
Tesco’s online business has grown by a whopping 90% across the three months to the end of August, driving overall food sales up by 9% and seeing pre-tax profits for the half year hit £551 million.
The shift to online is part of a wider change in shopping habits, which has seen consumers doing a large weekly shop online, then heading to local Tesco stores for a top up.
This has seen large store sales grow by just 1.4%, while the retailer’s local store portfolio has seen a 7.6% rise in sales across the period. Average basket sizes in large stores have, however, risen by 56% as shoppers make fewer trips.
However, with the surge in online happing more rapidly than expected and with these changes in shopper habits coming down the pipe, Tesco has also incurred a hefty £553 million bill for