Deep dive on the transaction overview, key cost and revenue drivers that lie underneath the online paradox to understand the key issues of different fulfilment options

Margin dilutive home delivery – home delivery drivers

The margin impact of home delivery is driven by the operational model (picking and last mile transportation) and commercial model (delivery fee)

Indicative profitability home delivery of small products

TRANSACTION REVENUE BREAKDOWN % OF AVERAGE BASKET VALUE

AVERAGE BASKET VALUE (€80) 100%

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TRANSACTION REVENUE BREAKDOWN % OF AVERAGE BASKET VALUE

COSTS OF GOODS SOLD 70%

REPLENISHMENT& FTL TRANSP. 6%

RETURN COSTS 5%

OTHER COSTS 3%

4%

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Indicative profitability home delivery of large products

TRANSACTION REVENUE BREAKDOWN % OF AVERAGE BASKET VALUE

AVERAGE BASKET VALUE (€290) 100%

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TRANSACTION REVENUE BREAKDOWN % OF AVERAGE BASKET VALUE

COSTS OF GOODS SOLD 60%

REPLENISHMENT& FTL TRANSP. 7%

OTHER COSTS 3%

-3%

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Sources: Deloitte analysis, company P&L data, annual reports, desk search, expert interviews