Tesco partners with Loop to launch online reusable packaging system

Date : 15 July 2020

Nick Gladding

Senior Retail Analyst

Tesco has partnered with online returnable packaging provider Loop to launch an online shopping service that delivers products in reusable packaging. 150 products, including sauces, yoghurts, soaps and cereals, will now be available through the service.

What is Loop?

Loop was founded at the World Economic Forum, with the aim to offer a zero-waste option for popular consumer products, whilst also maintaining affordability and improving convenience. The service has been developed by global recycling specialist TerraCycle, a leader in developing innovative recycling services and programmes for hard to recycle products, operating in 20 countries. Leading brands using the service include Unilever, Procter & Gamble, Nestle and PepsiCo.

How does the service work?

  1. The waste free shopping service allows consumers to consume products in brand-specific durable packaging that is collected, cleaned, refilled and reused. Consumers can place their orders at loopstore.co.uk. A deposit is paid on each piece of packaging which is fully refunded on its return
  2. Consumers receive their durable products in Loop’s shipping tote, eliminating the need for single-use shipping materials such as cardboard boxes
  3. After finishing their products, customers place the empty package into their Loop totes, and Loop will pick up directly from their home
  4. The packaging is then professionally cleaned using a method developed by Loop’s team of scientists for safe reuse Loop then replaces products as needed and returns the refills shipping totes to the consumer.

Tesco's 4R packaging plan

The pilot partnership with Loop will help Tesco achieve its 4R 'Remove, Reduce, Reuse and Recycle' plan, a key part of strategy that will see the retailer remove one billion pieces of packaging by the end of this year

Next steps

Tesco will listen to customer feedback and help Loop to develop the service. The range will increase over time and next year some products in reusable packaging could be introduced to Tesco stores. One issue that Tesco may want to address is that the lack of promotions on Loop which can make products seem more expensive. There is also scope to integrate the service into tesco.com.

More insight for Retail Analysis subscribers