Tesco.com outstrips UK competitors, survey shows

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By: Wise Marketer Staff |

Posted on August 24, 2006

Tesco.com outstrips UK competitors, survey shows

The UK supermarket chain Tesco has become by far the most popular online grocery shopping web site, capturing some 66% of all online grocery orders in the UK, according to ComScore Networks' online grocery sales data covering the first seven months of 2006.

From January to July 2006, Tesco gathered an average of 30,000 orders per day, representing total online sales of some £2.5 million per day. ComScore's analysis of its online grocery sales data took into account the e-shopping behaviour of more than 2 million consumers who have given the company permission to passively observe their online activities.

Competitors Tesco.com's closest online competitor was Asda, which captured 16% of all orders, followed by Sainsbury's with 14%. Despite its third-place standing in terms of order volume, Sainsbury's customers actually spent the most when they ordered, averaging almost £90 compared to £80 for both Tesco and Asda.

In addition, Asda and Sainsbury's customers typically ordered more items, both averaging 69 units per order, compared to Tesco's 58.

Cost of delivery ComScore also tracked the delivery costs charged by each, and found that Sainsbury's online customers incurred the lowest delivery charges during the period (at just over £3 per delivery on average). Tesco's online customers paid over £4 per delivery, and Asda's online customers paid the most at nearly £5.50.

According to Bob Ivins, managing director for ComScore Europe, "Delivery charges represent a key component of overall online grocery service, because the top three sites each offer complex pricing structures based on the delivery slot chosen and the amount ordered."

Top grocery choices The customers observed by ComScore bought more than 11 million bananas from Tesco.com in the first seven months of the year, making the humble Banana the top item sold (by volume) through the web site. In terms of contribution to revenue, Tesco's Luxury Soft Toilet Tissue 12-pack generated almost £2 million, making it the best seller by monetary value.

Drawing from the survey, Ivins noted that: "The best performing items at Tesco.com seem to be an interesting mix of fresh fruit and vegetables with a reasonable shelf life, such as carrots, onions and apples, and large-volume containers that are awkward for consumers to carry home themselves."

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