Well they never give a profit breakdown in their results which suggests it isn't.
Also, paying someone to pick items off the shelf and paying another person to deliver the items to your home has a cost and that cost is not covered by how much they charge for service, which for regular subscribers is negligable.
The grocery market in the UK is highly competative and margins are quite low.
Tesco's share price has done well recently because of take-over speculation after the recent Morrison's buy-out. Other than this it's performed relatively poorly for the past 10 years.
As already mentioned, they don't publish seperate profit and loss figures for home deliveries. There is a good reason for this.
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Tesco seem to be throwing everything at online shopping despite all signs indicating its never going to be profitable for them.
Why couldn't it be profitable for them?
Well they never give a profit breakdown in their results which suggests it isn't.
Also, paying someone to pick items off the shelf and paying another person to deliver the items to your home has a cost and that cost is not covered by how much they charge for service, which for regular subscribers is negligable.
The grocery market in the UK is highly competative and margins are quite low.
During the pandemic they massively ramped up home delivery and they made loads of money. They seem to be doing OK.
Tesco's share price has done well recently because of take-over speculation after the recent Morrison's buy-out. Other than this it's performed relatively poorly for the past 10 years.
As already mentioned, they don't publish seperate profit and loss figures for home deliveries. There is a good reason for this.