R E L A T E D C O N T E N T

Tesco homes in on e-retail

Tesco has unveiled plans to use Internet based communication technology as a key weapon in the growing battle between retail giants.

Helen Guyatt, Computing 08 Oct 1999

Tesco has unveiled plans to use Internet based communication technology as a key weapon in the growing battle between retail giants.

The UK's biggest supermarket chain said this week it will let shoppers order goods from home through digital television and Internet based mobile phones.

Tesco is working with ecommerce specialist Unipower to develop TV remote controls and mobile phones with built-in infrared barcode scanners, Unipower chief executive Jack Mark told the IT Directors' Forum on Monday. Shoppers will re-order goods by scanning items they have at home. UK customers could be using both devices late next year, Mark said.

Tesco will not issue barcoded printed catalogues because supermarket prices change so rapidly. The retailer will continue to develop its Tesco Direct Web shopping service.

Neil Withey, Tesco's new product development manager, said home shopping will happen through multiple devices, not just PCs or palmtops. "Why should we be limited to one device? You could be using the phone, the scanner, and the Internet," he said. "Cost per order has to be driven down by getting costs down. [Home shopping] gives you an incredible competitive edge. Our customers want to save time."

Stefan Elmer, senior analyst at the IDC European Internet centre, said that Tesco's home shopping strategy would be a world first for a major supermarket. "Usually you see this kind of initiative only talked about by vendors, so it's good to see someone with the courage to actually do it," he said.

The mobile phone, known as Orderphone, will be marketed at "about the same price as a regular phone," Unipower's Mark said. A remote control prototype will be ready this week, he added.

The Internet phones will use a protocol allowing customers to send barcode data to a server. The supermarket is talking to Nokia about developing a shopping application for phones using the Wireless Application Protocol.

Tesco has already marketed palm sized devices to its customers for online ordering. But at £300 each, takeup has been minimal.

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