PA business transformation expert, Anders Birch, has had an article published in Dansk Handelsblad magazine, discussing the potential of online grocery shopping.
Shopping for staple goods online is becoming increasingly popular among the Danes but Anders highlights how large supermarket chains do not seem to be following the trend – which may have a negative influence on their market share.
Anders says: “We believe that the market for online grocery shopping has great potential. In 2013, online trade made up one per cent of the total grocery market but this is expected to increase to around six per cent – corresponding to a turnover of DKK 7 billion in 2020.”
However, Anders goes on to say that despite interesting initiatives from online grocery traders, the market is expected to be dominated by existing supermarket chains. He also refers to UK figures which show that supermarkets with a multi-channel business model are likely to gain important market share.
Anders adds: “A multi-channel business model makes the most of the synergies that exist between the physical stores and the online platforms. Data can be collected which reveals customer preferences and then transformed into targeted offers […] These supermarkets will no doubt gain market share, but they must ensure an efficient distribution of their goods at a low cost, and deliver a high customer service at the same time.”
Anders Birch is a business transformation expert at PA Consulting Group.