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Thought Leadership

Act Now or Miss Out: Supermarkets Have To Work Together

Mervyn van Dam / August 16, 2017

In July 2017, I read in the Dutch financial newspaper FD that supermarket chain Dirk van den Broek would not go into online ordering and home delivery at this time. Why? Because the costs of home delivery are too high and will result in higher consumer prices in-store. It is indeed more profitable to continue to exploit the physical distribution channel than to offer a home delivery model. Margins are slim, and competition forces delivery costs to be low. But while delivering groceries will indeed cause profits to fall in the short term, I believe this is a short-sighted decision. The loss of customers will have a bigger impact in the long term.