Tesco announced plans to open a second Dot Com Only Store (DCOS), a dedicated location for fulfilling online grocery orders, so that it can free up space at busy store locations.
The chain has used a system where products are picked in-store and then delivered by van to customers in the U.K. With the dedicated facility, Tesco is looking to see if it can improve efficiencies all around.
According to a report by Logistics Manager, the DCOS is laid out exactly the same as an operating Tesco store but without the customers. Personal shoppers go through the store picking product for scheduled deliveries. Shoppers work on up to six orders simultaneously.
Discussion Questions: Do you see an advantage of one system for online grocery fulfillment over another -- in-store vs. dedicated facility? Would Tesco benefit by operating an online grocery service in the U.S. in conjunction with its Fresh & Easy division or as a standalone business?