Tesco boosts delivery capacity by 20%

Tesco has said that despite adding home delivery capacity in response to the pandemic, 85%-90% of food purchases will still have to be done with a physical visit to a store.

Home delivery capacity at Tesco has been boosted by 20% to an additional 145,000 delivery slots. 

The grocer has seen a 30% uplift in UK sales thanks to panic buying, though this has stabilised since the initial rush. 

Dave Lewis, chief executive of Tesco said: “COVID-19 has shown how critical the food supply chain is to the UK and I’m very proud of the way Tesco, as indeed the whole UK food industry, has stepped forward.

“In this time of crisis we have focused on four things; food for all, safety for everyone, supporting our colleagues and supporting our communities.”

While these aspects are good news for the company, it has incurred added costs in recruitment of new staff, distribution and store expenses. This could be in the range of £650-£925 million.

Lewis said: “Initial panic buying has subsided and service levels are returning to normal. There are significant extra costs in feeding the nation at the moment but these are partially offset by the UK Business rates relief.

“Tesco is a business that rises to a challenge and this will be no different. I would like to thank colleagues for their unbelievable commitment and customers for their help and understanding. Together, we can do this.”