Share solution directions that can help to turn The Online Paradox into a profitable online business model
The Path to success
Leading grocerers implemented multiple initiatives to try to pivot into profitability, with limited success. We believe that online grocery has the potential to be a cost neutral and possibly even profitable business. This is only feasible through a holistic approach, combining best practices of leading grocerers, and optimise the commercial and operational model in parallel. A clean model based on clear choices is key.
An optimised commercial model brings the right value to the consumer while making sure a fair reimbursement in pricing or consumer effort is introduced. However, consumer perception is key to take into account for all commercial improvements.
An optimised operational model makes sure the commercial offering is executed in a cost efficient way. However, transactional cost benefits need to be evaluated with the necessary investments. In addition, strategic decisions define the extent of optimisation possible (e.g. centralised vs decentralised fulfilment).
Sources: Deloitte analysis, company P&L data, annual reports, desk search, expert interviews