22 April 2014 - 6:55pm | posted by | 3 comments

Tesco announces cuts to online shopping charges after profits slump

Announcement: Tesco is cutting online shopping chargesAnnouncement: Tesco is cutting online shopping charges

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.

Comments

23 Apr 2014 - 08:06
rantsfromron20156

This reduction comes after Tesco - relatively recently - RAISED its delivery charges bringing them more into line with Sainsbury's rip-off rates (I'm housebound - I shop entirely online and delivery charges matter a hell of a lot). In consequence they lost some of my business to Sainsbury's as the saving was gone, and to Asda, who were cheaper.

Clearly I'm not alone in moving away from Tesco, hence the new reduction.

Tesco also needs to address the own-brand problem - almost 50% of my favourites over the past year are now unavailable, replaced with O-B versions, which is not what I want - the word Favourites is a clue there, Tesco.

1
0
23 Apr 2014 - 23:18
hjc9631137's picture

What an utterly misleading article!

Click & Collect orders in my area have been free for a long long time even in the run up to Xmas & Easter!

But what Tesco have done this week (w/c 21/04/14) is to introduce a £4 surcharge on ALL Click & Collect and Home Delivery orders that are less than £25.

So what about those Tesco shoppers on low incomes, unemployed, disabled who reply on Home Delivery and/or carers using the Click & Collect option?

At a time when they're losing market share hand over fist to the discounters they pull a stunt like this that will alienate a lot of their customers.

1
0
28 Apr 2014 - 07:11
littl11125's picture

YES!!! That's right, if you search this on the net, NO ONE mentions the new £4 surcharge for under £25 - all they mention is the new £1 delivery - it's NOT REALLY £1 (clearly haven't done their homework properly). This will affect ALL the people who do smaller shopping every week - esp. fresh produce, which will not last on a monthly shop. Shame on you Tesco, pulling a superficial stunt like this.

0
0

Please sign in or register to comment on this article.

Latest Projects from the Profile Hub

Malibu - creating the perfect brand moment to enhance engagement

17/12/2014
The challenge How do you change customers’ perception of...

Driving Sales From Social During Black Friday

16/12/2014
The craze of Black Friday crossed the pond and hit the UK...

BREACH: LETS JACK

16/12/2014
‘Jack’ – the infectious track by British producer Breach...

Launching the Seasonal Cities App

15/12/2014
In Q3 2014 Rooster was tasked with launching the new travel...

Helping a new fitness brand get into shape

12/12/2014
A new concept in gym fitness is being developed and we’re...