Tesco is upping the pace of innovation in its digital operations as it bids to restore its core UK food arm.
At an investor day on Tuesday, Tesco showed analysts its Enfield dotcom store, which is automated, much like Ocado’s warehouse. The grocer told investors that its sixth dotcom store, in Erith in Kent, would have even more automation when it opens next year.
The Enfield warehouse is profitable at 50% capacity, and Oriel analyst Jonathan Pritchard said: “Tesco is one of the few retailers that can claim genuine profitability online.”
Tesco is also working on new services including a Scan as you Shop app. Rival Sainsbury’s began a pilot of its Mobile Scan & Go app in three stores last month.
Espirito Santo analyst Caroline Gulliver said: “We sense Tesco is getting back on track, but the competition has improved considerably and Tesco will have to fight hard with promotions and loyalty offers to gain market share.”
Tesco this week launched Easy Entertaining, an online shop for party food. The service will initially be available in London, with delivery from four dotcom stores.