Tesco reported a 14 percent growth in its online business over Christmas, but the increase was unable to stave off a decline in the supermarket’s overall sales figures.
Rival Morrisons, which is only starting to do online deliveries tomorrow, experienced a similarly disappointing Christmas, which it admits was partly due to its lack of an online presence. In contrast, rival supermarket chain Sainsbury’s revealed yesterday that an increase in online groceries sales had helped it achieve a small uplift in total sales.
Tesco said that it had £450 million in UK online sales in the six weeks to 4 January 2014, an increase of 14 percent. This included more than three million online grocery orders, up 11 percent, and 1.5 million online general merchandise orders, up 25 percent.
Group sales, however, declined by 1.2 percent in the period.
“More customers than ever experienced Tesco across more than one channel this Christmas. Over three million online grocery delivery orders were placed within the six weeks covered by this statement, with one third of all orders placed on a mobile device,” Tesco said in a trading update.
“We saw a marked increase in the number of gifts bought online via Tesco Direct, including of course, our Hudl tablet, which continued to prove very popular.”
In addition, Tesco said that over 70 percent of its online general merchandise orders were collected in-store, demonstrating the popularity of its Click & Collect service.