In 2005, Tesco.com averaged 28,500 orders a day, with the average order coming to £97. With 750,000 active users, the supermarket giant’s online store contributes 3% to its total sales.
Online sales growth continues with 32% growth in sales for the year ending 2005, while profit margins increase by 55% relative to 2004, as economies of scale kick in.
Tesco.com’s nearest UK rivals achieve nowhere near these volumes. According to web traffic statistics site Alexa, Tesco has approximately 67 % of the market reach when taking account other retailers. Both Waitrose and Sainsbury’s opted out of the online channel in 2003-2004.
Tesco pursues an aggressive technology development program aimed at reducing costs and improving service to customers. An estimated 200,000 customers a day use the self-scan checkout, which eliminates waiting times at queues.