Tesco and Asda plan major expansion to challenge Ocado
Leading supermarket chains Tesco and Asda are soon to launch a significant expansion of their current grocery delivery services in London, in an attempt to beat upmarket delivery specialists Ocado at their own game.
Each supermarket is planning to open what is being called a 'ghost store' in the capital, which is essentially a distribution centre for food delivery operations. These stores, although not open to the public, will employ 300 staff in food jobs, picking and loading up products for more than 10,000 home delivery orders a week.
Asda currently reports delivery sales of approximately £900 million a year, whilst Tesco is the market leader with estimated sales of £1.1 billion a year. Despite these impressive achievements, Ocado has managed to corner the London market for grocery delivery almost completely, with around 90,000 deliveries every week.
Industry analyst Jonathan Pritchard has commented on Tesco and Asda's attempts to reclaim the London delivery market with their 'ghost stores', saying:
Each supermarket is planning to open what is being called a 'ghost store' in the capital, which is essentially a distribution centre for food delivery operations. These stores, although not open to the public, will employ 300 staff in food jobs, picking and loading up products for more than 10,000 home delivery orders a week.
Asda currently reports delivery sales of approximately £900 million a year, whilst Tesco is the market leader with estimated sales of £1.1 billion a year. Despite these impressive achievements, Ocado has managed to corner the London market for grocery delivery almost completely, with around 90,000 deliveries every week.
Industry analyst Jonathan Pritchard has commented on Tesco and Asda's attempts to reclaim the London delivery market with their 'ghost stores', saying:
"This shows that Tesco and Asda are serious about taking market share in the London area. It must only be a matter of time before Marks & Spencer and Morrisons come to similar conclusions about the opportunities."
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