Food Retail Market

Assuming feasible-to-supply areas expand
  • Delivery and fulfilment costs: low
  • Adoption barriers strength: no customers fees, no minimum basket, distribution reaching every populated area
  • Innovations & changes:theoretical model
Assuming feasible-to-supply areas expand
  • Delivery and fulfilment costs: low
  • Adoption barriers strength: low customers fees, low minimum basket, wide distribution reaching less densely populated area
  • Innovations & changes: Increase of automation and centralization, scare through acquisition and partnership, new supply chain models, planned itineraries
Assuming delivery fees change
  • Delivery and fulfilment costs: reduced by automation and centralization
  • Adoption barriers strength : average customers fees, low minimum basket, urban areas
  • Innovation & changes: supermarkets taking a ‘true customer lifetime value’ view of their customer and offer free delivery to some customers
Under current conditions
  • Delivery and fulfilment costs: high and pressuring margins
  • Adoption barriers strength : high customers fees, high minimum basket, urban areas
  • Innovation & changes: driven by incumbents losing money to try to steal share