Tesco has transformed a potential threat from rapid-delivery startups into a key driver of growth, reinforcing its dominance in the UK grocery market. Five years ago, CEO Ken Murphy warned that quick-commerce services could deliver “death by a thousand nibbles” to Britain’s major supermarkets. Today, Tesco’s own fast-delivery service, Whoosh, is expanding rapidly, offering store-to-door deliveries in as little as 20 minutes.
Whoosh operates from 1,600 Tesco stores, including 180 large outlets, reaching more than 70% of UK households. Tesco staff pick and pack orders, while delivery partners such as Uber Eats, Just Eat Go, and Stuart handle distribution.
Online director Rob Graham said the service has grown significantly, with the option to schedule Whoosh orders boosting customer satisfaction. Sales for Whoosh rose 47% year-on-year over 19 weeks to January 3, adding over 250,000 new customers. Tesco’s total online sales rose 11.2% during the same period, giving the retailer a 37% share of the UK online grocery market.
The UK quick-commerce market, valued at £2.4 billion in 2025, is expected to grow 10.1% annually through 2030, further solidifying Tesco’s advantage. While some ventures, such as banking services, were scaled back, Tesco is targeting a 30% UK grocery market share, up from 28.7% in January 2026. Analysts say the company’s robust infrastructure, advertising reach, and execution edge make this goal achievable.
Source: Reuters
