Best practice: Tesco.com — Peter Sleight, Interactive Marketing, Vol. 2 No. 4

Tesco has been established in the UK grocery trade for many years, and assumed market leadership five years ago. Tesco Direct was launched in 1996, offering home delivery of groceries. The service was rolled out across England and Wales, and into Scotland, by late 2000. Initially, ordering by phone, fax and Internet was offered—but the Internet provided the best business model. Tesco.com was formed in April 2000, to include the Tesco Direct operation plus Tesco Home Shopping (a 60:40 venture with Otto Versand, offering electricals, homeware, clothing, gifts, books and CDs) and Tesco Personal Finance. Thus a very wide merchandise range is available, without the need for expensive (and time-consuming) physical store development. Tesco has leveraged its existing consumer franchise to become the largest online grocer in the world, and it has shown the majority of dot-com start-ups a clean pair of heels in terms of fulfilment expertise and profitability.

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