Hudl sales surge gives Tesco boost

Tesco has revealed sales of its own-brand Hudl tablet have reached nearly 400,000 units – and could possibly have been higher if more stock had been available – with 100,000 being sold in the Christmas period alone.
The device, which Tesco chief executive Philip Clarke has dubbed a “damn good product that customers love”, is designed to build “a single and direct relationship with customers”.
Preloaded with the Blinkbox film and TV app, Clubcard TV, as well as its own banking and shopping apps, it is not thought that Tesco is making much profit on each device. However, the Hudl has a dual purpose for the retailer; its low price will make customers feel the brand is offering them a great deal, while it is well placed to mine customer data by giving Tesco’s data business – DunnHumby – an even closer link to consumers’ buying behaviour.
Stock shortages meant demand was so strong that devices were going on sale on eBay for as much as £180, way above the retail price of £119. Tesco is currently developing a second generation Hudl, to be released later in the year.
At its launch, Tesco marketing boss Matt Atkinson said: “Our customers have told us that although they like the idea of the benefits a tablet can bring, they sometimes feel intimidated about using one. So the challenge was clear – to introduce a tablet that is convenient, with a great spec, that not only provides all the features and content our customers are looking for, but is also easy to use and family friendly.”
Internet sales were one of the few bright spots in Tesco’s results announcement earlier this week. The UK’s biggest retailer racked up £450m in online sales in the six weeks to January 4, which was a 14% rise on a year earlier. Tesco took more than 3 million online grocery orders, up 11%, and 1.5 million non-food orders, a rise of 25% over the period.