Skip to main content

Where Tesco may be going next

Shoppers with an iPhone or iPad could soon be using their Apples to scan in groceries as they walk the aisles of Tesco supermarkets, Tesco.com head of digital Nick Lansley told Computing this week.

His team has already developed home shopping apps, a Tesco store finder app and a Clubcard app. But the mission now is to consolidate to three: transactional apps, banking apps and an app for information on Tesco.

What else is he working on? A mobile device for his in-store stockpickers that tells them where products are in the shops as they pick orders for Tesco.com. The current devices are on the carts that the stockpickers push around. The weakness of this approach is that the carts are bulky and its pickers would prefer to be able to walk nimbly around and bring products back to the carts when the shops are busy. Mobile devices fit the bill. And if you can make that device an iPhone?

Of equal interest is the company's attitude to development. Instead of using outside companies, it tries to develop neat IT solutions in house. In part Tesco has done this because it has been leading the industry. For example, Tesco set up a web site before most people had heard of the internet and it decided to pick orders from the shopfloor because the cost of special warehouses was too great.

The downside to its competitors of this approach is that outside suppliers do not get a look in at the IT developments and Tesco gets to keep its advances in house.

Comments

  1. Rewind 30 or 40 years and it was WH Smith that was at the cutting of distribution technology. A place that they had been at in new trade for 100 plus years. It is sad to see how industry leaders can decline through lack of vision and poor investments. USA, Craftsmiths, Do It All etc.

    I just wonder it the seeds of Tesco's demise have already been laid.

    (The Swindon distribution and computer centre at Greenbridge was a facinating place to visit.)

    ReplyDelete

Post a Comment

Popular posts from this blog

Digital disruption in the UK wholesale space

“Twenty years ago I was driving boxes to the post office in my Chevy Blazer and dreaming of a forklift,” says Jeff Bezos in his most recent letter to shareholders. A blink later and he points out that the company has grown from 30,000 employees in 2010 to 230,000 now. But his ambition is the same. “We want to be a large company that’s also an invention machine. We want to combine the extraordinary customer-serving capabilities that are enabled by size with the speed of movement, nimbleness and risk-acceptance mentality that is normally associated with entrepreneurial start-ups.” Amazon is great at disruption because of its customers focus and the fact that the internet means it needs none (or very few) people between its warehouses and the shopper. The threat of Prime, its membership service, is the biggest challenge facing the UK retail market and the wholesale market by extension. It is both a direct threat and an indirect threat in that is inspiring countless numbers of othe...

New look: big copy small?

The owners of B&Q are talking up how they have cut the price of a store refit from £2.5m to £1m by using wood-effect vinyl instead of wood and painted MDF backboards for displays. Managers are learning to live with grey shelving instead of a warmer-looking cream. Shoppers notice the produce, not the fixtures, suggests one executive. Up to a point! Most local retailers will extract the maximum possible life from their fixtures, sometimes taking too long to change equipment that has become tired. As in all business, it is getting the balance right. Shops need to be refreshed and with a purpose.

What do shoppers see

I read a good post (http://www.newsagencyblog.com.au/2009/08/28/what-do-newsagents-charge-for-faxing.html) asking what price local shops charge for providing a fax service. The blogger had attached a photograph of his sign with his prices on it. What struck me was the message on the sign. "You drop, we fax," it said. "Pressed for time, drop your documents with us and we'll do it for you at no extra charge." That is a message that will persuade most shoppers that you want to give them good value, even if they stay to do the copying or faxing themselves.