The Co-op to make debut in online grocery

  • Print
  • Share
  • Comments (2)
  • Save

The Co-operative Group is planning to launch an online grocery service within the next year.

Details are currently being fleshed out but the launch was “within reach”, said Helen Bridgett, The Cop’s head of strategy, insight and planning.

Speaking at the IGD Online Grocery Retailing conference this week, she hinted that mobiles would play a key role in the offer. Describing desktops as online grocery superstores and phones as online c-stores, she said the growth of smartphone use “brings huge opportunities”.

The offer is also likely to make use of the infrastructure already in place for the society’s free home delivery service for customers who spend over £25 in-store. The home delivery service currently operates from 350 stores and has 400 vans.

The main barrier to setting up an online convenience model was likely to be the cost-efficiency of delivering small baskets. However, having a network of local shops making short deliveries would make a convenience offer more competitive, she said.

It would be a smart move for the Co-op to launch an online service, said e-commerce experts. “If it didn’t go online it would be at a competitive disadvantage compared with other retailers,” said e-business analyst Martin Gill from Forrester Research. “It’s not as if it’s starting from scratch logistics and distribution make up the lion’s share of set-up costs and it has a lot of that taken care of already thanks to home delivery.”

But supply chain consultancy Sequoia said there could be downsides to such a model. “Local deliveries may reduce driving distances, but covering a small area would also reduce the number of orders, which could harm delivery efficiency unless they plan to offer wide delivery slots or leave goods on the doorstep,” said technical director David Bosomworth.

“However, the Co-op Group is well placed to offer click and collect: by picking customers’ orders at a central depot, they could combine the SKU range of an out-of-town store with the convenience of a local store pickup.”

Readers' comments (2)

  • I am an employee member,registered 30% disabled and for years have used asda online ordering and delivery..There is no point in sending me discount coupons and share of profits discounts as I cannot attend shops in Dunfermline under your present no online ordering service.. Stan Bell 633174 9100 8151 6310...

    Unsuitable or offensive? Report this comment

  • Please make it soon. My life has been hell since I've had to shop at Asda

    Unsuitable or offensive? Report this comment

Have your say

These comments have not been moderated.

You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment.

Any comment that violates these terms may be removed in its entirety as we do not edit comments.

If you wish to complain about a comment please use the “report this comment” facility or email groceremails@wrbm.com

Mandatory
Mandatory
Mandatory
Mandatory

Related images

  • HELEN BRIDGETT CO-OP
  • Print
  • Share
  • Comments (2)
  • Save
Sign in

Newsletter Sign-up

Free

I wish to receive the following newsletters:

For Members

Become a Gold Member to receive these newsletters:

Become a Finance Member to receive these newsletters:

Become a member of The Grocer

DIRECTORY

The+Grocer+Directory

CLICK HERE to search for the products, services and companies you need in the definitive guide to the UK food and drink industry.

FOLLOW THE GROCER

The Grocer's commentators and opinion makers