Asda announces third party e-commerce collect and delivery service

In an attempt to tap into the double digit growth of the e-commerce industry, US owned supermarket chain Asda has launched ToYou, a service where online e-commerce companies can have a physical presence at the 614 Asda stores nationwide.

Customers of third party e-commerce companies can pick up and drop off goods they have bought online at Asda supermarkets. Online fashion retailer Missguided is the first, Asda hopes, of many e-tailers to buy into the opportunity. A company statement said, “Missguided is expected to be the first of many with new clients expected to be announced in the coming weeks and Asda opening its doors to all retailers.”

Asda is looking to tap into the e-commerce delivery market, where 1.5 billion parcels were delivered across the UK last year. The grocery chain has the advantage of having shops right across the UK at a convenient distance from most households. In having the service at the stores, so it is hoped that customers dropping and picking up goods will also buy other groceries, clothes or home wares from the Asda shops as well. It is hoped that the ToYou service could increase Asda’s footfall by up to 40 million visits a year.

ToYou is powered by US parent company Walmart, and goes into competition with the Post Office, which has a similar scheme through the UK postal operator Royal Mail, where shoppers can pick up or drop off parcels with companies such as Amazon, and Argos where eBay shoppers can pick up their goods. The grocery heavyweight moving into this market will increase convenience for online shoppers, and be a major competitor in the online shopping delivery market. With e-commerce changing the face of the way UK customers shop it is a potentially lucrative market for players with innovative solutions to e-commerce shopping problems.