Tesco is set to open a stand-alone warehouse dedicated to its online retailing operations.
The move marks a departure in strategy for the retailer which up until now has worked on the store-picking model for it Tesco.com business.
The company has bought a warehouse near the M25 which it intends to turn into a one-stop shop for internet orders in the London area. The scheme is thought to be costing the retailer around £10m.
Tesco has stressed it is intending to only set up one internet-only food warehouse to meet demand in the area. However industry experts said that if the move proves successful, it may pave the way for further warehouses.
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