Table: Tesco's Advantage by the Numbers

The secrets to Tesco.com's success are higher margins on groceries, a delivery fee, and lower packing and delivery costs than Webvan.

% TESCO % % TESCO.COM OF SALE STORE OF SALE WEBVAN OF SALE

AVERAGE SALE $123.25 100% $34.80 100% $114.00 100%

MINUS: COST OF GROCERIES $85.66 70% $26.10 75% $ 83.00 73% CASHIERS IN STORE - - $ .87 3% - - OTHER STORE COSTS $15.16 12% $ 4.28 12% - - MARKETING AND ADMIN. $5.67 5% $ 1.60 5% $133.04 117% PICKING AND DELIVERY $17.80 14% - - $ 30.00 26%

PLUS: DELIVERY FEE $7.25 6% - - - - NET PROFIT (LOSS)* $6.21 5% $1.95 6% ($132.04) NM

* Including delivery fee, before taxes

Data: BusinessWeek, ABN AMRO, Schroder Salomon Smith Barney, Booz, Allen & Hamilton, Jupiter MMXI, company reports

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