South African retail giant Pick n Pay exits Nigerian market, eyes Zimbabwe
NIGERIA - South Africa s supermarket chain Pick n Pay has announced its departure from Nigeria by divesting its stake in a joint venture with ...
Posted - 30 Oct, 2024
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26 Sep, 2024
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UK - Tesco, the British multinational grocery retailer, has launched a new subsidiary, Transcend Retail Solutions, aimed at helping international supermarket chains enhance their online operations.
Led by Strategy Director Oliver Vogt, Transcend will offer both software and hardware solutions, as well as consultancy services, to enable grocers to fulfill online orders directly from their stores. The subsidiary is part of Tesco’s strategy to grow its presence in the global e-commerce market.
Transcend has already secured its first partnership with Foodstuffs North Island, New Zealand’s largest grocery retailer.
The technology provided includes Tesco's cloud-based picking software, which maps the most efficient route for staff to collect items from shelves, optimizing the fulfillment process for online orders.
This technology is now operational in two stores under Foodstuffs' PAK’nSAVE and New World brands, with plans to roll out across 150 locations.
Vogt highlighted Tesco's experience in online grocery operations, noting that 85% of the retailer's more than 1 million weekly online orders are fulfilled from stores.
“Our solutions are tried and tested. We set up Transcend because we truly believe we have something to offer the market,” he said.
Tesco's move into global e-commerce solutions puts it in direct competition with Ocado Group, a UK-based online grocery retailer that has evolved into an international technology provider.
Ocado’s business model centers on creating automated Customer Fulfillment Centres (CFCs) that use AI-driven warehouse systems.
Ocado’s key partnerships include Australia's Coles, for which it is developing robotic warehouses in Melbourne and Sydney, although delays in construction have hindered progress.
The competition between Tesco and Ocado marks a trend among supermarket chains to invest in e-commerce technologies in response to shifting consumer behavior.
Tesco’s approach, which focuses on leveraging in-store infrastructure for order fulfillment, contrasts with Ocado’s investment in automated warehousing.
While Ocado's automated systems promise efficiency, recent reports indicate that some of its major clients, including Kroger and Sobeys, have slowed the expansion of these warehouses due to lower-than-expected demand for online groceries.
Both Tesco and Ocado are addressing the growing demand for online grocery shopping, a trend accelerated by the COVID-19 pandemic.
Tesco has been a key player in this space for decades, having launched its online grocery services 40 years ago. The company now handles over 1 million online orders per week.
The launch of Transcend is part of Tesco CEO Ken Murphy’s strategy to find new avenues for growth.
The venture aims to tap into international markets by offering its tried-and-tested solutions to grocers worldwide.
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