Thai web store is next pin on Tesco's world map

[Mid]

Thai web store is next pin on Tesco's world map
James Thompson
Sunday 24 February 2013

Supermarket giant to add to its overseas empire with internet groceries

Tesco is ramping up its global internet empire by launching an online grocery in Thailand next month and China in the spring.

The supermarket giant, which has operations in 13 countries, has been introducing food home shopping in capital cities before a wider roll-out. The next major city will be Bangkok in the next few weeks.

This adds to Tesco's online operations in Poland's Warsaw, Slovakia's Bratislava, Czech Republic's Prague, South Korea and Ireland at a time when the group is finally on the up again in the UK, which still accounts for more than 60 per cent of profit.

Thailand is one of Tesco's most significant overseas markets. It opened Tesco Lotus in 1998 and now has 1,257 stores in the country, generating annual revenue of more than £3bn.

The grocer will also launch online stores in China's Shanghai in May, making the fast-growing city a test-bed for a possible expansion to the capital Beijing in the future.

While it does not sell food on the web, Marks & Spencer began selling fashion and homewares online in China in December through a local partner, Taobao. All of M&S's 14 stores are in or around Shanghai, which accounts for half of the high-street bellwether's online revenue in the country.

Tesco has more than 120 stores in China after launching there in 2004 but it has been more cautious with its expansion plans in recent years. The world's third biggest retailer's underlying sales in the Asian country were flat in the first half of 2012.

In the UK, Tesco introduced online grocery in 2000 and the profitable business grew sales by 20 per cent over Christmas.

While food online is typically the least profitable grocery operation, it is a crucial battleground for big supermarkets to ensure customers don't migrate to their rivals both over the web and in stores. Internet grocery shoppers are also often wealthier, which means they spend more on food, as well as other non-food products or services. Online grocery spending is set to almost double from £5.6bn in 2012 to £11.1bn in the UK by 2017, according to trade body IGD.

The online expansion is another positive piece of news for Tesco's chief executive Philip Clarke. He sanctioned a £1bn investment last year to turnaround its flagging UK business. This helped it power ahead of rivals with a 1.8 per cent rise in sales over the six weeks to 5 January.

This compared with growth of 0.9 per cent at Sainsbury's and 0.1 per cent at Asda. Morrisons sales fell 2.5 per cent over a similar period. But, how the horsemeat scandal has hurt sales has yet to be reported.

independent.co.uk

[ltnt]

They can't manage the walk in one's as it is. How are they going to fare with internet check out? Like I'm going to give them my card number? Must be why their prices have skyrocketed lately.

[VocalNeal]

If one doesn't expend energy walking to the store then one can eat less, therefore buy less.

Seems a business loser to me

[Thetyim]

How are they going to fare with internet check out?

Maybe it's cash on delivery or maybe you still have to collect.

[Mid]

1 : Register a few details

2 : Choose a delivery slot

3 : Buy some groceries

4 : Review and Checkout

5 : Receive your shop at home

Tesco Groceries

[koman]

I'd be happy if they could just learn to manage the inventory in the existing stores. Half the time when I go to the local one they are out of stock on things like fucking Cornflakes. (They have not had Weetabix for six months) It can take weeks to re-stock items which should never be allowed to run out in the first place. They don't seem to re-order until the existing inventory is totally exhausted.

They also let bread sit out on the shelf when it's so stale a thermal lance would hardly cut it....and of course the price is just the same as if it had just come out of the oven. Useless twats....

[weewillywinkie]

I regard Tesco as the last supermarket to go to. I always use Villa, Big C and TOPS in preference.

[ltnt]

Big c is last on my list, with Villa being outherworldly in prices, TOPs is my first choice when I want mid-range choice and Tesco is just shitty all the way around. Most unfriendly staff I've ever run into anywhere in the world.

I wonder who does the "buying," for all these stores? Bangkok stores get "first choice on imports and local grub, then the not so good stuff is shuffled off to the peasants outside. Usually the out of date stuff as well. This goes for all the markets listed. No exceptions. Abundant empty shelves is the norm outside Bangkok and the complete stoppage of specific items due to hi selling moments during the year in Bangkok.

[Boon Mee]

Big C stores stock more stuff than Tescos.

[Rural Surin]

They can't manage the walk in one's as it is. How are they going to fare with internet check out? Like I'm going to give them my card number? Must be why their prices have skyrocketed lately.

Don't patronize them.
Nothing that special about what Tesco/Lotus have to offer.

Stay local. Much more satisfying.

[ribblerat]

Top's all the way ...

[DJ Pat]

I bet they get many orders wrong if it's a falang order, and when it arrives at the door they'll say there's nothing they can do.....then you call up Tesco Thailand and they can't speak english.....

[DrAndy]

The supermarket giant, which has operations in 13 countries, has been introducing food home shopping in capital cities before a wider roll-out. The next major city will be Bangkok in the next few weeks.

delivery time, 3 days.....

Half the time when I go to the local one they are out of stock on things like fucking Cornflakes

oh dear

(They have not had Weetabix for six months)

oh no

[The Master Cool]

^ I bet they've had one box of each on the shelf as a 'display model' that they cannot sell though.

[Norton]

fucking Cornflakes

Always out of stock due to high demand would be my guess.

Top's all the way

Agree but rare as hens teeth up country so it's the big three. Tesco, Makro and BigC. What a particular store stocks depends on the local market demand. Here in Roiet, Makro has the best overall selection.

Stay local. Much more satisfying.

To a degree. Fresh fruit, vegetables, pork, fish and chicken for sure but dairy no products or other products needed to satisfy western tastes.

[Norton]

The next major city will be Bangkok in the next few weeks.

Should be successful. Even though there are plenty of Tescos in the Bangkok area when you take into account the hassle and time involved to shop at one, home delivery will be of value to most.