Tesco hasn't been faring particularly well of late. The year started badly for the supermarket giant, with a profit warning being issued following a poor Christmas performance, and then the departure of its CEO.
In its latest results announced today, profit in the UK was down by 1 per cent on the previous year to £2.5 billion. However, Tesco has a grand plan to stop the rot involving a £1 billion investment.
And part of that plan is the creation of the Tesco Market Place, which will sell third-party goods in an attempt to rival online retailing giant Amazon.
According to the Telegraph, shoppers can already purchase plants and gardening tools at Tesco.com from online retailer Crocus - with Tesco getting a cut from the resulting sales on its site.
The Market Place project is likely to see DIY and homeware outfits sign up next, so you'll be able to get light fittings, as well as bulbs and rakes.
Tesco feels it has one obvious advantage over Amazon, given its supermarket stores across the country. Folks will be able to order online, and go into the shop to pick up the item, rather than having to wait for it to be delivered. "Click-and-collect", as it's called, isn't available in every Tesco store by any means, but the chain is intent on expanding the numbers swiftly.
Even given that, and the supermarket's undoubted weight in the retail sector, we can't help but feel that challenging Amazon is still going to be an uphill struggle.
Source: The Telegraph