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Tesco Turns Rapid Delivery from Threat into Growth Engine

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Tesco has transformed the once-feared threat of rapid-delivery startups into a competitive advantage, as its Whoosh service gains pace and strengthens the retailer’s online business. Five years after warning that fast grocery apps could chip away at supermarket dominance, Tesco now delivers groceries in as little as 20 minutes from its own stores. The retreat of loss-making quick-commerce players has left Tesco well positioned to capture demand, using its scale, store network and marketing power.

Whoosh now operates from about 1,600 Tesco stores and reaches over 70% of UK households, with staff picking orders and delivery handled by partners such as Uber Eats and Just Eat. Sales through the service rose 47% year-on-year in the 19 weeks to early January, adding more than 250,000 new customers, while Tesco’s overall online sales grew 11.2%. Industry estimates show the UK quick-commerce market growing steadily through 2030, reinforcing rapid delivery as a meaningful growth channel.

The success of Whoosh supports Tesco’s broader ambition to regain a 30% share of the UK grocery market, up from 28.7% currently. Investors see the target as achievable if Tesco maintains execution discipline and avoids costly missteps. Despite recent share price gains, Tesco still trades at a valuation discount to global peers, with analysts and shareholders viewing its strong market position and dominance in profits as key strengths going into 2026.

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Tesco Apologises for IT Glitch Disrupting Online Orders and Clubcard Access

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Tesco has issued an apology after a software issue temporarily disrupted access to its website and mobile app on Friday afternoon, leaving many customers unable to amend online orders or retrieve their digital Clubcards. The UK’s largest supermarket chain confirmed the problem was caused by a software glitch that has since been resolved. “We’re sorry for the inconvenience,” a Tesco spokesperson said in a statement to the BBC.

Customers took to social media to report a range of issues, from being unable to modify online grocery orders to problems accessing loyalty vouchers and collecting Clubcard points. The supermarket’s official account on X (formerly Twitter) acknowledged “intermittent system issues” and assured users that its IT team was working to fix the problem. According to Downdetector, reports of technical difficulties peaked shortly after 14:00 BST and began to decline around two hours later.

Although some users said they experienced outages for up to four hours, Tesco made no indication that the issue was linked to a cyber attack. This comes as other UK retailers, including Marks & Spencer and the Co-op, have recently suffered disruptions caused by cyber incidents. Tesco’s Clubcard scheme, which boasts over 20 million members, allows customers to earn points and receive discounts both in-store and online.

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Carrefour to halt Pepsi sales over price rises

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French supermarket giant Carrefour has announced its decision to cease selling Pepsi products in its stores due to what it deems “unacceptable price increases.” The move, affecting items like Pepsi soda, Doritos, and Quaker cereals, was communicated to customers through signs displayed in stores. Pepsi has expressed its commitment to continuing negotiations in “good faith” despite the disagreement.

The disagreement arises amid France’s struggle with rapidly increasing food prices, as indicated by a recent report showing a 7.1% rise in food prices in December compared to the previous year. French Finance Minister Bruno Le Maire has been urging major food companies to lower prices and has even threatened special taxes on what he considers “undue” profits. The government has accelerated the deadline for price negotiations between food companies and supermarkets in an attempt to address the issue.

Pepsi, citing rising costs, has implemented price increases in recent years, with expectations of further hikes in 2024. The company has also faced criticism for “shrinkflation,” reducing product sizes without corresponding price decreases. Carrefour, as the second-largest grocer in France, has been notably resistant to this practice and, in September, displayed signs highlighting “shrinkflation” on certain products, including Lipton Ice Tea, a Pepsi brand.

Carrefour’s decision to no longer sell Pepsi products is accompanied by notices explaining the move as a response to “unacceptable price increases.” Despite this decision, existing Pepsi products on the shelves will still be available for purchase by French consumers. Pepsi has stated that discussions with Carrefour have been ongoing for months, and they remain committed to finding a resolution to ensure their products’ availability.

While public disputes over pricing are unusual, they are not unprecedented. In 2022, Tesco clashed with Kraft Heinz over price hikes for staples like baked beans and ketchup. Similarly, German grocers Edeka and Rewe halted sales of certain Mars products, citing price increases. Edeka also faced a dispute with Pepsi in the previous year, and a standoff between Mondelez, the maker of Milka chocolate, and Belgian supermarket Colruyt resulted in a supply gap last year.

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