Tesco says “massive shift online” is here to stay as its online operations grow 90%

Tesco’s new chief executive says that the new dramatic shift to online grocery is “here to stay” after it nearly doubled the size of its ecommerce business over the last quarter.

Tesco saw its online operation grow by a whopping 90 per cent across the three months to the end of August, helping it achieve an overall nine per cent rise in food sales.

Online food sales rose from just nine per cent of Tesco’s total before the pandemic, to 16 per cent during the period.

Ken Murphy, who took over the helm of Tesco from Dave Lewis last week, said this “massive shift online” will be “maintained for the foreseeable future”.

In his first week as chief executive Tesco experienced its busiest ever week for online grocery, fulfilling more than 1.5 million orders.

READ MORE: Tesco increases shareholder payouts as half-year profit soars

The UK’s largest grocer announced plans to open a second urban fulfilment centre in Lakeside early next year, which according to Murphy could prove a “game changer”.

A further 25 of these facilities are due to be opened over the next three years, dramatically expanding the reach and efficiency of its logistics network.

“The profitably of online has improved,” Murphy said.

“The average basket size has increased significantly, and our van utilisation has also improved dramatically. Also, one third of our online orders are click and collect.”

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