Today in retail: Can Tesco hope to compete with Amazon?

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Tesco has taken the fight to Amazon today by extending its same-day delivery service to 300 stores, enabling it to reach 99% of UK households.

Following an initial launch in London and the South East in 2014, Tesco shoppers across the country will now be able to order an unlimited number of grocery items online by 1pm for delivery from 7pm onwards.

The move will put Tesco ahead of Amazon in terms of coverage – while Amazon’s Prime Now members can already enjoy free same-day food deliveries, the online Goliath’s service is currently only available in a handful of UK cities.

Each Tesco delivery will cost shoppers between £3 and £8, but the grocery giant – like Amazon – is incentivising members of its Delivery Saver membership scheme with free same-day drop offs for a period of time.

Tesco’s bricks and mortar clout may have given it the upper hand on this occasion, but as demand for same-day delivery rockets, there’s no doubt Amazon and Tesco’s feisty grocery rivals will be hot on their heels.

Also today, Retail Week unveiled that Shop Direct’s group ecommerce director Jonathan Wall is leaving the pureplay retailer.

Quote of the day

“Graze is a successful business, focused on delivering its ambitious plan to be the world’s largest healthy snack brand. There is currently no sales process under way.”

A Graze spokesperson denied reports of a £300m sale by its private equity owner