Tesco is set to retaliate against the expansion of the Amazon Fresh online grocery service by adding free delivery for members of its Clubcard Plus premium loyalty scheme, which was launched last November.
Although the Fresh service was first set up in the UK in 2016, it has so far failed to make any headway in the sector, despite offering Morrisons products as well as grocery items supplied by Booths and Whole Foods.
But this could all change with Amazon’s plans to speed up delivery times to make same-day delivery available to UK grocery customers in some parts of the South East. Some 15 million Brits have already signed up to Amazon Prime and will now be able to order groceries through Amazon Fresh, with free delivery on orders over £40, from this week.
Amazon said the expansion will initially cover up to 300 postcodes, focused around London and the South East, with the service be rolled out to other areas of the UK more by the end of the year.
In contrast, Tesco has increased its delivery slots from just over 600,000 a week to 1.4 million as the coronavirus pandemic caused a massive shift to online shopping but has also brought in a standard delivery charge of £4.50 for all time-slots.
The supermarket giant will be hoping that adding free delivery will boost uptake of the Clubcard Plus service. The company has yet to reveal how many have signed up to the scheme, which costs of £7.99 a month; at launch it claimed shoppers would be able to save over £400 a year by joining.
For that, members get 10% off two big shops worth up to £200 each, every month, plus 10% off F&F, Fred & Flo, Go Cook, Fox & Ivy, Tesco Pet and Carousel all year round, and double data for new and existing Tesco Mobile customers.
Meanwhile, Tesco has also teamed up with the UK Government to launch a fund to protect supply chains and support international workers.
The Department for International Development (DFID) launched the £6.85m “vulnerable supply chains” last week; it also includes Primark, Sainsbury’s, Morrisons and Marks & Spencer who have pledged to “keep vulnerable workers in their supply chains in safe and secure employment”.
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