Tesco is developing a new venture aimed at helping international supermarket chains grow their online businesses.
Transcend Retail Solutions, a Tesco subsidiary headed up by strategy director Oliver Vogt, provides the supermarket’s software and hardware to enable international grocers to fulfil online orders from their stores.
Transcend has signed its first deal with New Zealand’s biggest grocery retailer, Foodstuffs North Island, The Sunday Times reported.
Foodstuffs is using the supermarket’s cloud-based picking software, which receives online orders and uses handheld devices to map the most efficient route for staff to pick products from shelves.
The technology is now live in two Foodstuffs stores with the aim to reach 150 branches.
It is also reported that Transcend is holding talks with other international retailers about similar deals.
Vogt said: “Our solutions are tried and tested. We set up Transcend because we truly believe we have something to offer the market.”
Tesco has been in the online grocery market for 40 years and handles over 1 million online orders per week.
The new online initiative by Tesco is likely to be monitored by Ocado, which has also struck deals with overseas supermarkets to build automated warehouses.
Tesco’s new move is part of chief executive Ken Murphy’s plan to find new ways to grow the retailer.
No comments yet