Tesco has gone into partnership with department store giant House of Fraser as it ramps up its online third party marketplace.
More than 2,000 House of Fraser homeware brands, such as Linea and Pied A Terre, will now be available on the Tesco Direct site, with customers able to choose home delivery or click & collect.
It is the biggest deal Tesco has signed with a third-party seller since launching its online marketplace in April 2012. Tesco has also rebranded the strategy as Tesco Partners’ and it now has more than 50 third party suppliers on board.
The move comes with Tesco expected to stress the importance of its digital strategy when it reports what analysts expect to be another grim set of figures in its first-quarter results on Wednesday, with speculation that its UK sales will fall by 3.5%.
The partnership also marks the first significant strategic deal by House of Fraser since it announced in April that it was being taken over by Chinese conglomerate Sanpower for £480m.
“We want to offer our customers a fantastic shopping experience, however, whenever and wherever they choose to shop with us,” said Ian Caminsky, partnership director at Tesco.
“We want to reward them for their loyalty, so we’re really pleased that we’re now able to offer customers Clubcard points on all of their Tesco direct purchases. We’re also delighted to welcome House of Fraser to Tesco Partners, as we know customers love their fantastic homeware range.”
Andy Harding, executive director, multichannel for House of Fraser, added: “This partnership is an exciting opportunity to share a truly inspirational shopping experience with even more customers. We bring over 160 years of department store retail experience, so there is huge potential to create a great working relationship between our businesses.”