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Tesco Grocery online – our journey September 2010

Tesco Grocery online – our journey September 2010. Tesco today. Tesco.com today. Online Grocery today. £2bn sales Profitable 350,000 orders per week 20m items picked every week Over 2000 vans Over 1.2m active customers. Home delivery isn’t new. In 1994 customers were saying….

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Tesco Grocery online – our journey September 2010

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  1. Tesco Grocery online – our journeySeptember 2010

  2. Tesco today

  3. Tesco.com today

  4. Online Grocery today £2bn sales Profitable 350,000 orders per week 20m items picked every week Over 2000 vans Over 1.2m active customers

  5. Home delivery isn’t new

  6. In 1994 customers were saying… Why can’t you do the work for me? I’m housebound but really independent; how can I do my shopping? I’m a busy working Mum; I have less time Why can’t the shopping come to us?

  7. Customer led, not technology led …our Technology platform in 1994

  8. The internet to the rescue

  9. So how does it work for the customer?

  10. Who is our shopper?

  11. What do they buy?

  12. Listening to our customers

  13. To perfect the shopping trip… Mystery shoppers Van charging points Snake loading Pre-picking Picker BRAG Bagless delivery Telematics Cubiscan Hub stores Grocery images Green slots Earlier deliveries Goodwill gestures Inside out bags Would I buy it? Space saving trolley Vehicle incident board Picking algorithms New customer pages Product mapping Return tray option e-coupons Product separation Pick across vans Driver training Flexi contracts Structures Bag recycling Van step change Same day delivery Weighing scales Driver assessments TWIST Picker routing Scan item scan tray Dynamic scheduling Customer notes Hybrid vans Team leaders Site stability Shapes and colours VBV Shopper hours Live traffic updates Premium service Suggested substitutes Dispatcher Favourites Pick audit tool Recipes Electric vans Pre-picking Alternative locations Van scheduling Loyalty gifts Healthy alternatives Hours forecasting Tray weights Van GPS Subs on manifest Variable service charge Trolleys Big battery Call me Green slots Right pay Dispatch process Van refrigeration Ranging algorithms Van turnaround process Dotcom academy Catchment road speeds Know your stuff …the sum of hundreds of small innovations

  14. To deliver Every Little Helps

  15. Shorter than we’d like

  16. Price match substitutions Satisfaction with Subs – % very/fairly satisfied Launched Price Match Subs

  17. Mobile phone apps

  18. Click and collect

  19. Routing and drop density

  20. Dotcom only stores

  21. Our Response • Separate business unit • Same prices • The right accounting… • …own P&L • ….with shared KPIs... • Customer obsession • Operational efficiency • Shared infrastructure • Constructive tension What have we learnt? The Obstacles • Sales cannibalisation • Pricing and trading decisions • Its too small to worry about • Parochial anti-customer behaviour • “It’s too difficult!” • “This will never make money!”

  22. The future I just cook with my laptop on the kitchen counter! It [the kitchen] has become a real social area now, because we keep the laptop there one of the boys will always be on it and I’ll be cooking over there and talking to them I use everything in combination, chatting to my mates about the programme I'm watching on my phone, looking up stuff about it on my laptop if it’s boring...you just keep everything open something is always active

  23. Thank you

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