London, March 9, 2026, 23:31 GMT
Tesco has rolled out Royal Mail parcel lockers outside a handful of UK stores, letting customers collect, send, or return parcels anytime—part of the grocer’s ongoing move to bolt on more services to the weekly shop. Royal Mail kicked off the six-month pilot at locations such as Ashby-de-la-Zouch, Barrow, Burnham-on-Sea, Bury, Cullompton, Horwich, March and Preston, according to a statement Monday.
Timing counts for Tesco. The grocer’s effort to hang onto recent share gains comes as competition in the sector heats up again. In the 12 weeks to Feb. 22, Tesco’s sales climbed 4.5% and market share hit 28.7%, according to Worldpanel figures out last week. Grocery inflation nudged higher, now at 4.3%. Sainsbury’s picked up share too, while Asda slipped.
Royal Mail says its new lockers, installed outside shops, are open round the clock. Labels print instantly at the site—so if you’ve bought postage online or received a QR code for a return, there’s no need for a home printer. Jack Clarkson, managing director for out-of-home and commercial excellence, described the rollout as “great news for shoppers.” Royal Mail aims to expand its parcel collection points, targeting 45,000 by 2030, up from the current 25,000. Parcel & Postal Technology
Tesco described the move as a limited locker-hub trial, adding that Royal Mail joins InPost as an option for customers. A member of Tesco’s strategic partnership team said boosting convenience is now key for UK grocers looking to capture more spending.
Tesco’s rivals are making similar moves. Sainsbury’s struck a long-term deal with Royal Mail for parcel lockers last year. In June, Co-op committed to adding Royal Mail lockers to 100 of its locations. Out-of-home delivery—shipping parcels to lockers or collection points instead of people’s doors—continues to gain traction, as shoppers lean into e-commerce and secondhand platforms.
Tesco’s parcel initiative lines up with its broader push into convenience. Back in February, Rob Graham, the company’s online director, told Reuters that the Whoosh 20-minute grocery delivery service was active in 1,600 stores, now covering more than 70% of UK households and boosting online sales by 11.2% in the 19 weeks through Jan. 3. Tesco has told suppliers it’s targeting a 30% share in UK groceries. Kunal Kothari at Aviva Investors said there’s “no reason” Tesco can’t keep gaining ground, provided execution stays on track. Reuters
Still, there’s a catch. Ben Preston, fund manager at Orbis Investments, warned Reuters that Tesco’s main threat right now isn’t just external — the company could “lose focus” and give competitors an opening. That’s a big deal with services like fast delivery, loyalty pricing, and parcel drop-offs piling up around the core grocery business. Reuters
Things aren’t getting any easier. Reuters on Monday flagged that European retailers are staring down another spike in energy costs, as oil and gas prices climb and squeeze everything from transport to cooling systems and fertiliser. Christian Eufinger, finance professor at IESE, warned that with demand already shaky, rising prices could hit consumers even harder this time.
Back in January, Tesco flagged that it was on track for full-year adjusted operating profit at the upper end of its £2.9 billion to £3.1 billion guidance, thanks to a robust Christmas performance. Chief Executive Ken Murphy summed it up at the time: competition remains “as intense as ever.” The locker pilot? It’s minor on its own, but it’s part of that same crowded battleground. Reuters
