Bain's report says the course of the pandemic will help determine that. It plays out three possible scenarios for Covid-19.
The more middle-of-the road scenario anticipates growth in online grocery penetration would be elevated but more modest. It's based on countries emerging from restrictions in stable condition, a vaccine arriving within 12 to 14 months and grocers keeping up with demand and stepping up customer experience.
Regardless of the scenario, the report said, the pandemic resembles "someone pressing the fast-forward button on the industry by several years." That puts grocers on a clock to figure out their business model, it says. For example, in-store grocery sales tend to have an operating margin of 2% to 4%, according to Bain. That drops to -5% for a grocer that picks from a store and has a customer retrieve the order through click-and-collect. It drops even further to -15% if a grocer picks from a store and delivers to the customers' home.grocers must shake off their fear of fees, embrace automation and make money in new ways.
They need to hurry. Amazon is going to eat their lunch (pun intended).
I still believe you can have a successful online and brick and motar business. You just need to find balance between marketing (online) and customer service (brick and motar(
No Masks or gloves are buying your food!
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