Loblaw’s is testing a new e-commerce strategy to allow customers to order on-line and have their groceries ready to be picked up at the closest store.
In an effort to compete with both Amazon and Wal-Mart’s e-commerce’s food strategy, Loblaw’s will launch a pilot later this year with 3 stores. The chairman expects the test to be successful and suggested a rollout quickly.
Food e-commerce is a tough business to be successful because of the added costs of providing and keeping food fresh and handling many bulky price-sensitive products. Loblaw’s envisions selling more fresh fruits and vegetables than packaged groceries in their stores.
The Chairman indicated that the concept could also be rolled out to Shoppers Drug Mart. He stated “So instead of the Canadian consumer taking the 20-minute drive to one of our stores, they take a five-minute drive or perhaps even walk to a Shoppers Drug Mart store,” he said. “We think that represents a very significant potential strategic advantage for us ultimately.”
As we all know, everyone is seeking to be more relevant and convenient.