The number one online supermarket has announced 28.7% growth for the first half of 2006. Having topped £1000m in turnover in 2005, growth is down slightly from 32% for the year ending 2005, but profits are up to 43.1% in 2006 as economies of scale rise further. Likely sales for 2006 are £1300m (topping €2000m), only behind Amazon for the UK.

Online sales are only 6% of total sales though, compared with Littlewoods 30% revenue from its ecommerce group.

Tesco has piloted specialized order fulfillment centers, which use state of the art Operational Research Software to optimize a order filler's pick up route along specialized pallets and shelfs. In addition to advanced automation to manage shelf stock. Order filler staff follow instructions on a wrist worn PDA, to fill several orders at the same time, with a minimum of movement along ailes.

Tesco is rivalling shops like Argos and Ikea by offering home delivery in two-hour slots, instead of half-day ones, and also the option to collect directly from stores.

Tesco has increased the number of CDs and DVDs it offers online to 280,000. With an additional 8,000 products in the lucrative electronics and household appliances sectors. In fact, Tesco is the highest selling household appliances retailer on the Enclick price comparator site. With close to 300,000 products, Tesco has one of the most comprehensive product data feeds on offer among online merchants.

[Via Guardian Online]