Tesco.com leads the world, says Datamonitor

Tesco's IT team received a major fillip when analyst firm Datamonitor showed Tesco.com to be the world's largest online grocer.

Tesco's IT team received a major fillip when analyst firm Datamonitor showed Tesco.com to be the world's largest online grocer.

James Rogers

Tesco's e-business systems, largely developed in-house, have shown that IT can boost company profits and give shareholders value.

Mike McNamara, IT director at Tesco.com, said, "The Datamonitor survey results are testimony to the work of the Tesco.com team and we are proud of our achievements. Most work was done by Tesco's in-house IT team, which is made up of top-notch people."

The survey suggests that Tesco was responsible for more than half of the UK's total online grocery sales of $580m (£395m) last year. Tesco sold $310.6m of products online, compared to Sainsbury's $125m and Asda Wal-Mart's $50.5m.

Nick Gladding, analyst at Datamonitor, said, "I think that Tesco will be encouraged by the survey's results. This shows that you have to market services effectively and provide something distinctive."

Tesco.com is acknowledged as the UK's leader in online retailing and recently announced that sales over the Christmas period were 400% up on last year.

According to Tesco, the service now has 40,000 grocery goods on sale and non-food products are expected to grow this year.

McNamara said, "The Web site has played a key role in helping customers shop online who have never used the Internet before."

Datamonitor's report also indicates that more UK shoppers are using the Internet for food shopping rather than their US counterparts.

Gladding explained, "The difference is that over here online retailing has been led by established players such as Tesco and Sainsbury's, whereas in the US it has been led by specialist retailers."

He believes that this has given UK retailers a basis on which to build their online operations. "Tesco went for the right model by using existing stores to service online customers," he said.

Read more on E-commerce technology

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close