Tesco is taking on specialist wine retailers with a new online Wine Warehouse offering 800 wines by the case at rock bottom prices. Tesco.com chief executive John Browett said: "Our aim is to be the best wine by case delivery service in the UK." Tesco is already the biggest online wine retailer through its grocery home shopping site Tesco.com, and a major player in the UK wine market, claiming to control 20% of the off-trade and 30% of sales through the multiples. As the service utilises Tesco's existing fulfilment network, start-up costs have been minimal, said Browett. Orders are sourced from Tesco's wine warehouse in Northampton, taken to stores and then delivered to customers on Tesco Direct vans. "This costs about £0.5m compared to the £10-20m you might expect for setting up something on this scale from scratch." A new range of fine wines is coming online in October to target connoisseurs, while a jargon busting section has been included on the site for less discerning drinkers. Average orders already top £100. The minimum order is 12 bottles and there is a flat delivery fee of £5. {{NEWS }}

Topics