22 April 2014 - 6:55pm | posted by

Tesco announces cuts to online shopping charges after profits slump

Tesco is to cut online shopping charges as a part of a range of measures after a profits slump. The changes mean click and collect orders will be free in every store, which the retailer said could save customers £111 a year, while cuts to Delivery Saver prices could see costs drop by £252 per year. One hour Tesco.com delivery slots have been dropped to £1, and a range of cuts across food ranges have been announced. David Wood, UK marketing director at Tesco, said: “I’m absolutely delighted we can do this for our customers. We never stop thinking about how to make their lives better and easier, and these new lower prices on every day products will really help families on a budget. Together with £1 home delivery or free Click and Collect for food shopping, our customers are going to make real savings.” The news comes just a week after Tesco announced profits had fallen for the second year running, with pre-tax profits dropping six per cent to £3.3bn in the last year - down from £3.45bn a year earlier – and like-for like sales falling by three per cent in the final quarter of 2013/14. The retailer’s market share has fallen from 29.7 per cent a year ago to 28.6 per cent, although the shopping giant remains the UK’s biggest supermarket.

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