Tesco exec predicts merger between ecommerce, physical stores

In light of a new innovation to his company's online store, Tesco CEO Philip Clarke commented that he believes the line between shopping in-person and on the internet is beginning to blur.

Speaking at the recent British Retail Consortium Conference, Clarke made his comments on the importance of an online payment gateway for today's companies shortly after he introduced the extension of Tesco's click and collect service to groceries. He said his company, and many others in the U.K., are pursuing further innovations that make ecommerce payment solutions as much of an everyday solution as a physical grocery or retail store.

Calming the fears of today's brick-and-mortar store owners, Clarke also claimed that he doesn't see a future of competition between online and in-person shopping. Rather, he said, a multichannel approach will be the more likely result, benefiting both the ecommerce company and store-front owner.

These innovations are the result of a rapidly growing online shopping environment in the U.K. The MRG Capgemini E-retail Sales Index found online spending in the country reached £5.2 billion in April, a 20 percent increase from April 2010.