Thursday, 9 May 2013

Sainsbury's: Click & Collect Won't Work For Us

Sainsbury's chief executive Justin King said yesterday that a 'click & collect' service wouldn't work for the chain because of the size and accessibility of its stores.

The observation appears to be at odds with other retailers that have pushed the strategy as a way to get shoppers addicted to online shopping back into shops.

King said Sainsbury's stores were on average smaller than those of rivals like Asda and Tesco and mostly in more accessible areas nearer towns. He said that made journeys more easy and made setting up a click and collect service for shoppers less attractive.

King said yesterday online food delivery sales nearly reached £1 billion in the year to March. He also said the service was profitable and made shoppers more loyal, despite concerns that profit margins are thin and supermarket struggle to make it profitable.

Analyst Clive Black at stockbroker Shore Capital said in a report last year that the cost of the service could be as much as £20 per visit. He said that meant shoppers making the effort to visit supermarkets were subsidising the service. 

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