Tesco is the UK’s largest ecommerce grocery operator by a significant margin (used to be the world’s largest, if UK, Ireland and South Korea numbers were lumped together)
20% share price bump in last few weeks, likely referencing recent strong sales results, even considering competition from Aldi, Lidl, Sainsbury’s (and a somewhat distracted Asda, Morrisons).
Useful facts buried in the detailed docs behind the headline presser
- Online performance continues to outpace market, share up +71bps YoY; switching gains from online competitors (switch based on Kantar data, does not include qcommerce switchers I think)
- Strengthened online availability to 97.6%; number of ‘perfect orders’ up +12ppts YoY
- Opened a further three UFCs since February, adding 1m order capacity per year; now at nine UFCs in total
- Tesco Whoosh now in 1,414 stores, making rapid delivery available to c.60% of population; now offering larger baskets (400 stores added in the last 6 months)
- Launched ‘Chef Central’ in Booker, offering multi-site national and regional customers the ability to offer standardised menus through a defined product range, with great value products delivered directly to their doors
- Introduced 500th electric customer home delivery van; fleet to be fully electric in the UK by 2030
UK Online performance H1
(MRT note does not include Ireland/Central Europe, nor B2B online from the Booker division)
23/24, then One-year change, all increases but I think less than pandemic peak
Sales inc. VAT £3.0bn 10.0%
Orders per week 1.18m 4.2%
Basket size £98 5.2%
Online % of UK total sales 13.0% 0.1ppts
This 12-13% number has been this number for more than a decade
It is the orders per week and percentage share that is interesting.
Also notice the significant share buyback flow.