Tesco Malaysia sees more consumers going online for their groceries

PETALING JAYA: While Malaysians are generally still slow in embracing digital economy for their needs, particularly when it comes to groceries, but online sales are set to improve this year, in line with Malaysia’s online shopping growth.

Tesco Malaysia CEO Paul Ritchie said on Saturday that the online shopping trend is growing much slower as Malaysians still liked to visit traditional markets or grocery stores.

“Consumers still want the physical aspect of grocery shopping.

“They want to touch, see, smell, and pick groceries by hand,” he said during Star Media Group’s Power Talks Business Series session on Saturday.

Tesco was the first grocery chain to introduce online grocery shopping two years ago.

Since 2014, Tesco Malaysia’s online sales have totalled RM179mil.

Ritchie said he expects Tesco’s online sales to improve this year, in line with Malaysia’s online shopping growth of 18% a year.

With the rapidly changing retail landscape, Tesco is focused on making shopping more convenient to consumers.

Ritchie, who has 37 years of experience, both in Britain and internationally, is responsible for developing and growing Tesco’s business in Malaysia.

He was appointed Tesco Malaysia CEO in Sept 2015.

Prior to that, Ritchie was CEO of Tesco Retail and Property business based in Shanghai, China. It is notable that during his tenure in Shanghai, Ritchie launched the first store-based grocery home shopping service.

Tesco Malaysia celebrates its 15th anniversary this year with 56 hypermarkets, two distribution centres and over 7,000 staff.