Reasons for eGrocery
› Provide existing customers with another channel for doing business with you
› Block other grocers from “stealing” those existing customers who would wish to use this medium
› Recover business from existing eGrocery providers and protect against future losses to any online operation.
› Win new business both in customer type and through the extended radius a store can cover when offering a delivery service. An existing store catchment radius may be 3 to 5 miles, but an eGrocery delivery radius may be up to 15 miles.
› Allow for access into geographical areas where it is not possible to build a store; either economically or through planning restrictions.
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› Create communication channels with new customers and improve existing communication channels – spread your brand to areas outside where you currently operate.
› Can increase overall sales by up to 5%, at a very low capital investment number (approx $1m) if you choose the in-store picking model.
› Complement and enhance the existing store-based business
› Should generate net margin figures, for this additional “virtual” store of between 6% and 10%
› Can achieve profitability within 24 months |