March 11, 20215 yr Expert Peer Review Group Interesting article in FT .. 'Stores still matter when it comes to online groceries' ... Stores still matter when it comes to online groceries | Financial Times (ft.com) Key Takeaways - Whilst online grocery spending has surged during pandemic, profiting from additional revenue is proving a challenge. "Bain estimates companies that use staff to fill online orders in a store and deliver them lose between 10 and 15 per cent on every order, depending on the delivery fees." The most cost-effective method to deliver online orders is to leverage "smaller, automated warehouses, often attached to a store". J Sainsbury, the UK’s second largest grocer, last week announced plans to close its London online fulfilment centre and plans to upgrading online departments in more than 20 London-area store in order to "cut delivery distances and share staff and inventory costs" and "shift to a lower cost model". What do you think? ... are decentralised mini / micro fulfilment centres more efficient ? ... what criteria should be used by retail tenants to determine optimal locations ?
Create an account or sign in to comment