As of 2016, online sales contributed only 2% to the company’s total turnover. Online grocery shopping is growing at a relatively slow pace, as Malaysians still prefer to shop at traditional markets or grocery stores.
Tesco was the first grocery chain in Malaysia to introduce online grocery shopping two years ago. To date, its delivery coverage has grown to reach 50% of the nationwide population. Tesco Malaysia has also partnered with Lazada and Happy Grocer to extend its online shopping services.
Grocery stores larger than 60,000 square metres are challenging to sustain. The optimal solution, which Tesco is also implementing in some of its stores, is to use space better by offering a wider and improved range of products in a smaller floor space.
In 2017, Tesco Malaysia will be opening two new stores and four to six next generation stores (smaller sized stores with a proportionally wider range of products).
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