Tesco to sell luggage and furniture in competition with Amazon

Tesco launched a digital marketplace to sell everything from giant chess set to office furniture. The supermarket giant is trying to compete with Amazon’s online.

Tesco has added 9,000 products to its website as it tries to lure shoppers by offering third-party brands such as Hornby Jigsaws and Beko Air Fryer.

Tesco is aiming to become a “one stop shop” for all the needs of its customers.

Tesco’s Marketplace Director Peter Filcek stated that the supermarket is trying to offer customers more choices.

He said: “We are constantly looking for ways to improve our shopping experience, and our new Marketplace offers our customers the same quality and value that they have come expect from Tesco, across an even larger range of products from our carefully selected partners.”

He added that the range will be further expanded in the months to come.

Orders will be filled by third party suppliers. The products are displayed alongside Tesco grocery on the website.

The decision to expand the range of products comes as supermarkets are trying to attract more online shoppers. Sainsbury’s has recently set up new fashion hubs for selling third-party brands.

M&S has focused on increasing sales for other high-street brands.

In the next few years, executives are expected to target revenues of up to £1bn from third-party lines.

Morrisons has also been testing the launch of general merchandise at its stores, including low-priced jewellery and luggage.

The move was seen as a bid to replicate the success Aldi, Lidl and their “middle-aisle” offers which featured limited edition general merchandise.

Tesco has re-engaged in consumer goods after years of retreating from its earlier attempt to launch an online marketplace.

The Tesco Direct website was launched in 2012, but it ceased to trade six years later.

Analysts believe that Tesco’s latest move is a response to Amazon trying to steal customers from the traditional British supermarkets.

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