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Website marketing: Asda takes on Tesco as the digital supermarket war surges

January 27th 2010

Universal Search Marketing News

Asda online is closing the gap on Tesco in an ongoing website promotion battle as the digital supermarket war surges.

It has been more than a year since the eConsultancy blog compiled a list of ten things Asda could do to improve its online shopping service, such as improving images and generally making its site more user-friendly and easier to navigate.

And the supermarket giant seems to have taken eConsultancy's advice after almost doubling its share of online supermarket sales from just 17 per cent in October 2008 to more than 30 per cent in January 2010.

Indeed, Tesco.com could lose its dominance of the online shopping sector to Asda within just six months if consumer trends continue, according one of the UK's leading discount websites.

In July 2009, Tesco enjoyed the majority share of online grocery shoppers, with 41 per cent of supermarket sales through Tesco.com compared to 27 per cent via Asda.co.uk, according to data collected by MyVoucherCodes.co.uk.

However, sales figures throughout January 2010 reveal that Tesco is losing the lead to Asda, owned by American supermarket chain Wal-Mart, with a share of 36 per cent and 31 per cent respectively.

The figures appear to be part of a trend for shopping online overall, with more than 70 per cent of people polled for New Media Age's Online Shopping Survey 2010 saying they would be likely to shop for groceries online.

Sainsbury's was the third most popular online supermarket with a total 13 per cent of sales this month, while Ocado - which also sells Waitrose own-label goods - was in fourth place with nine per cent.

In fifth place was Marks and Spencer with six per cent.

Frozen food specialists Iceland, despite the fact it no longer offers online grocery ordering, was more popular online than Waitrose, with three per cent of sales compared to Waitrose's two per cent.

Retail expert Mark Pearson, managing director of MyVoucherCodes.co.uk said the success of Tesco and Asda was down to their "fantastic online offerings", which made it easy for consumers to find and buy their groceries.

However, he said he believed that Asda's website marketing, which was constantly playing itself off against Tesco as the UK’s cheapest supermarket, was strengthening its brand.

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