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Online Grocery: The Discounters’ Achilles’ Heel

Online Grocery: The Discounters’ Achilles’ Heel
Photo: LZ Retailytics
Grocery e-commerce is the discounters’ Achilles’ heel: Their concept-inherent strengths lie instore.
Grocery e-commerce is an enterprise that the discounters have been avoiding, if not repressing. Why this inactivity in the channel when superpowers such as Amazon are increasing their focus?

Evidently, grocery home deliveries are costly, especially the last mile. But there’s more. Discounters have a concept-inherent disadvantage online: Home delivery is the reversal of the self-service concept. Sourcing aside, the challenges of online multiply for discounters.

But there are ways out. We are seeing discounters beginning to team up with external service providers such as Instacart and newer delivery start-ups. These visibly separate partners can justify the higher costs of delivery to the shopper, allowing the discounters to keep their slate clean.

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Topics: Amazon Dia Schwarz Group dm Aldi