Tesco UK has updated the ways it has adjusted its operations to the covid-19 outbreak, as the business begins to “settle into a new rhythm” after the first week of national lockdown. The retailer has expanded its home delivery and click & collect capacity to around 780,000 delivery slots this week, up from 660,000 two weeks ago, with plans to increase this by another 100,000 in the coming weeks.
The news comes after Tesco enforced an 80 items limit on online orders, reduced promotions and simplified pricing, as grocers in the UK faced an unprecedented demand spike in online services. Tesco has also shared that panic buying seems to have eased. The stock levels in fresh categories have returned to almost normal levels, while in packaged grocery recovery is expected to take a few more days, with a few product areas still to show some gaps.
As retailers adapt their operations to manage the huge demands being placed in stores and online, driven by radical swings in shopper behaviour, CPGs must maintain close communication with their retail customers. Brands must identify priority ranges and pivot production plans, enabling fair distribution of scarce SKUs.
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