Struggling supermarket giant Tesco is urging everyone to shop more via mobile, as part of their £1billion investment deal that should help them to fight back against their rivals. Shoppers will now be able to order 75000+ products including books, TVs and clothes from a mobile version of Tesco’s Direct website.
The addition of mobile shopping facilities is the heart of the shake-up campaign that Tesco are using to try and increase profits. Tesco, despite being one of Britain’s biggest retailers, reported that they were experiencing a drop in profits for the first time in decades. Only £2.5 billion was made in profits last year.
Tesco, dubbed ‘Tescopoly’ by critics, was once an all-conquering chain of supermarkets. As they are trying to soften their cold, hard public image they have cut back on the number of new store openings and store expansions. A key aspect of Tesco’s revamp is to shift away from building more stores and focuse more on offering digital services.
Grocery shopping is already possible via the Tesco mobile site, but Tesco are now spending £150 million on selling other Tesco products. Third party products are also set to become available on the mobile site, in a bid to develop their online presence more.
Another service that Tesco is planning to expand is the Click & Collect facility. The number of Tesco stores that will be able to offer this facility is set to double over the next year. 85% of the UK’s stores will now benefit from the extended Click & Collect services.
Philip Clarke, Tesco Chief Executive, revealed that Tesco has seen a 1% fall in their profits over the last year. However, international growth has helped Tesco to increase its pre-tax profits to £3.9 billion. Clarke, a worker at Tesco since 1974, also revealed that 8000 staff are going to be hired and many shops are going to be refurbished so that they have a ‘warmer look’.