Supermarket giant highlights plans to go up against the likes of Amazon in advance of poor results

Supermarket giant highlights plans to go up against the likes of Amazon in advance of poor results

Tesco chief executive, Philip Clarke is expected to unveil plans for an online marketplace to rival the likes of Amazon tomorrow.

With many analysts predicting the supermarket giant will unveil dwindling full year pre-tax profits, up only 2.8% on last year, the concept of allowing other merchants to sell their wares via Tesco online is hoped to bolster its worsening fortunes and greatly expand its click-and-collect services to more of its stores.

As of last week, Tesco.com customers could buy gardening goods from online horticultural retailer Crocus, giving the supermarket a share of the sale and heralding the supermarket’s first foray into third-party ‘online shopping mall’ services.

Preparing to spend instore

The move is also expected to complement plans to improve customer service and upgrade its store estate.

James Spalding, managing director of e-commerce e-commerce systems integrator e2x, commented: “The ‘Market Place’ could give retailers a huge boost by introducing a previously unimaginable route to sales.

“The move by Tesco highlights the potential for [High Street] retail and e-commerce to blend together to offer the ultimate convenience and choice for consumers as well as giving retail stores a reason to exist as spending becomes increasingly digital.”

At the same time, Tesco chief information officer Mike McNamara revealed it is trialling electronic shelf-edge labels in the UK, with a view to first rolling it out in Hungary. The technology will allow the grocer to centralise and automate pricing updates.