Tesco Ramping Up Whoosh Offer
Tesco’s rapid grocery delivery service, Whoosh, is starting to offer its customers the opportunity to do full-basket shops.
Order sizes for Whoosh deliveries had been restricted by what can be carried on the back of a moped. However, according to trade publication The Grocer, several hundred Tesco stores are seeing the upper limit on order size removed at certain times of day.
The report said that the full-basket offering has been enabled in part by Tesco’s delivery partner Stuart and its network of car- and van-driving couriers.
It is understood that the unrestricted Whoosh order size will typically be available to those customers scheduling for their order to arrive later the same day.
Cornelia Raportaru, the CEO of Stuart, told The Grocer: “If you’re closer to a large Tesco store, you could literally order anything you want.”
She added: “Our strategy has been to push on innovation and do things no one else is doing. One example is large baskets – the appreciation that [shoppers] want to order a large basket for same-day delivery and not have to wait two days. Today in the UK, there’s almost no one except Stuart that has that capability that is cost-effective on all sides and rewarding also for the courier partners.”
Tesco launched Whoosh in 2021, and it is now available in over 1,500 stores, covering around 70% of the UK population.
During its last financial year, Tesco’s online sales rose by 11.4%, driven primarily by volume growth, including a 2ppts contribution from Whoosh after a near 60% year-on-year jump in orders.
In a results call with analysts earlier this month, the group’s CEO, Ken Murphy, said: “It’s now a really meaningful business. It’s now growing at a really rapid rate. It has, we believe, some real competitive advantage that we want to exploit. So, you can see further investment in that. I think there’s quite a long way to go before we would say that model is mature.”
NamNews Implications:
* If the demand is there, ways will be found…
* With the unrestricted facility going to those paying for speedy (same day) delivery…
* …Stuart’s near-unique large basket facility gives Tesco a competitive edge * (and Innovator’s advantage) in building on its 11.4% growth in online.
* (An opportunity for suppliers in appropriate categories?)
QCommerce RapidDelivery Tesco
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