Tesco chases online appeal

Tesco wants to improve the local appeal of its web site

Tesco wants to use next-generation internet technology to replicate the community feel of a local supermarket in cyberspace.

By exploiting new capabilities such as social networking, interactive feedback and user-generated content, Tesco.com hopes to retain its position as the second most popular UK retail site and steal a march on traditional rivals.

So far the site has simply been a way to sell goods, but Web 2.0 technologies could recreate some of the community aspects of a real shop, says Tesco.com IT director Jon Higgins.

‘The web site is a great selling vehicle, but we want to put more heart into it,’ said Higgins.

‘Tesco stores have a range of community initiatives, such as notice boards, and we want Tesco.com to be more local,’ he said.

The first step has been the introduction of Microsoft’s Virtual Earth program, which allows customers to find their local stores on an interactive map.

To improve the speed and security of the site as it develops the new capabilities, Tesco.com will become one of the first UK companies to use Microsoft Windows Server 2008 as the platform for its web, application and database servers. It was also one of the first to make the switch to Microsoft Vista operating systems.

Community involvement in a supermarket web site makes good business sense, says James Roper, chief executive of online retail trade group IMRG.

‘The internet is about people, and people are interested in friends and developing communities,’ he said.

Maintaining online success relies on keeping up with new technologies. Tesco.com’s commitment to innovation is behind its recent success in overtaking Argos to become the second most visited online retailer, says Roper.

Web 2.0 technologies have significant potential for online retailers, but the business case is not yet clear, says Gartner vice president Jackie Fenn. But boosting customer loyalty could be enough justification.

‘The trick is figuring out what will attract more people to a site, but being first will give Tesco.com time to figure out how it can best take advantage,’ said Fenn.