Abstract

The case describes the evolution of Tesco.com, the online selling arm of United Kingdom’s number one retailing company Tesco, into the world’s number one online grocery seller by 2003. It explains the rationale behind Tesco deciding to tap the Internet to sell groceries in the mid-1990s. Detailed information is provided about the strategies adopted by the company to make this business a success, these include its unique ‘pick-in-the-stores’ model, delivery excellence, inventory management, customer service and website management. Thereafter, the case studies the outcomes of these strategies and comments on the role of Tesco.com’s success in its alliance with the US-based retailer Safeway in 2001. Lastly, the case examines the various possible pitfalls for Tesco.com in 2003, and briefly discusses its future prospects.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Building an online sales channel.

Keywords

Evolution, Tesco.com, online selling, arm, United Kingdom, number one, retailing company, Tesco, grocery seller, 2003, Internet, groceries, 1990, pick-in-the-stores, model, delivery excellence, inventory management, customer service, website management, US-based, retailer, Safeway, 2001, future prospects