Financial Times: Why Online Grocery Retail Must Become Profitable
Mar 4, 2019
The Financial Times wrote a feature on the difficulties of online grocery retail and why selling food online is unprofitable.
Speaking to the FT, Nick Harrison, Global Retail Practice Co-Leader, estimated that it costs upwards of £10 to pick and fulfil each order, whereas delivery charges to the customer are half that amount. None of the big UK players disclose the sales or profits of their grocery delivery businesses separately.
Yet despite unprofitability, online is here to stay.
“It is fundamentally dilutive for the main players, but they have to think about market share. They don’t want to lose that customer to another chain,” Nick highlighted.