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Tesco has reported an 11 percent rise in online sales since last year, one of the few areas of its business to see strong growth. Tesco joins other retailers in this trend, with both Asos and M&S posting strong online sales earlier this year.
The performance of Tesco’s online business was the only good news in the supermarket’s otherwise disappointing annual financial results. Tesco reported a six percent fall in profits for the year to £3.3bn.
It also confirmed it had sold 500,000 of its budget Hudl tablet and intends to launch a second model later this year.
Tesco will be hoping the online side of its business continues to grow after it outlined plans for multi-channel growth at its Investor Day in February, including expanding its mobile offerings and putting aspects of the Internet of Things into practice.
Furthermore, in June last year the supermarket appointed Michael Comish, then head of its on-demand movie service Blinkbox, to lead its online services as group digital officer. Tesco is also building a digital development centre in London to drive forward its web offerings and attract technology skills.
Tesco chief executive Philip Clarke said the supermarket is well prepared to respond to changes in the marketplace. “We are transforming Tesco through a relentless focus on providing the most compelling offer for our customers. Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before,” said Clarke.
In February, Tesco’s online reputation received a hit when cyber criminals used data from previous high-profile hacks to break into thousands of Tesco.com accounts. Customers reported store vouchers being stolen from their accounts after crooks used details from other data breaches to guess their Tesco logins.