Retail Innovation Watch: Grocery Delivery
Consumer expectations for quick and convenient shopping — and fast, fresh delivery — are adding pressure to the already expensive supply chain. In a low-margin industry like grocery, the substantial increase in logistics costs creates a major challenge — leading grocers to experiment with different delivery
models to lower costs. Some are partnering with third-party logistics specialists (as Kroger has done with Ocado in the U.S.), while others are building their own logistics capabilities (as Ahold Delhaize has done since its 2001 purchase of Peapod). Others are blending third party logistics with in-house capabilities.
As grocery delivery gains popularity, we will see a proliferation of new models and technologies that aim to lower costs while meeting consumer demands.
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