The Co-op supermarket plans to launch an online grocery delivery service as it seeks to draw a line under troubles at its banking arm and to catch up with rivals.
The supermarket will begin the first of four trials before Christmas as it seeks to size up the best strategy. Food boss Steve Murrells told Retail Week he wanted to rediscover the chain’s trading ‘mojo’.
The magazine said the grocer is under pressure from competitors but has put off the decision for years because its basket size is much smaller than the larger chains at just £6.
Murrells told the Guardian: 'We recognise that the online grocery market is a rapidly growing channel which provides a significant opportunity for us as, primarily, a convenience store retailer.'
The online market accounts for 3.4 per cent of the £163.2 billion grocery market (about £5.5 billion although its is estimated by others to exceed £6 billion).
However, some analysts have also complained that grocery delivery operations do not make any money and could even be loss making if all the costs are taken into account.
But Murrells told Retail Week: 'We need to get match fit if we are going to start to compete again. For the last few years we had lost our mojo and we needed clear leadership and direction.'
Murrells said the Co-op has a market share of about 6.6 per cent.
No comments:
Post a Comment