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Tesco promises simpler and improved online offer as Q1 sales rise

Group like-for-like sales at Tesco for the first quarter of its financial year were up by 1.8% while Booker reported comparable sales growth of 14.3%.

Like-for-like sales in the combined UK & Republic of Ireland business, for the 13 weeks ended 26 May, jumped by 3.5% as the UK’s largest retailer looked to map out new opportunities following its merger with wholesaler Booker.

The Q1 trading statement also highlighted some of Tesco’s plans around its digital offering, with the organisation saying the recent decision to close its online marketplace, Tesco Direct, is part of a strategy to simplify its non-food eCommerce offer.

Tesco Direct will cease trading on 9 July 2018 and there is currently a major clearance promotion under way on the site, but plans are in place to move non-food items across to its core Tesco.com platform. Customers shopping there can already buy some toys, homeware and cookware ranges, and the retailer said it will selectively build on this selection.

Indeed, Tesco said its grocery home shopping business performed strongly in the quarter, with both transactions and basket size growing year-on-year, and more customers are apparently using the retailer’s Delivery Saver subscription service. It promised to continue rolling out innovations, including Spoon Guru’s lifestyle & dietary search filters and various other improvements to our website and app.

Spoon Guru enables online shoppers at Tesco to filter their food searches, typing their food intolerances such as lactose or nuts, or selecting whether they want vegetarian, vegan, low fat, and low salt items, and more easily find suitable products for their dietary requirements.

Meanwhile, integration of the Booker business continues apace, and 3,000 Booker products are now fulfilled from the Tesco Magor distribution centre (DC). Tesco’s Middleton DC is to support Booker growth during the busy summer trading period.

The retailer announced it has extended the two-store trial of the top 30 selling Booker lines, rolling out similar ranges to over 50 additional Tesco stores.