Why Amazon is a major threat; the saturday essay

Despite its relatively small market share, retailers and brands should be wary before writing othe threat the company poses to established business models. In the low-margin world of grocery retail these additional costs leave many supermarkets making a loss on online orders. supermarkets. consequen...

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Bibliographic Details
Published inGrocer pp. 24 - 47
Main Author Hassold, Christian
Format Magazine Article Trade Publication Article
LanguageEnglish
Published Crawley NLA Access Media Limited 13.03.2021
NLA Media
Subjects
Consumers
Market shares
Supermarkets
United Kingdom
United Kingdom > UK
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Summary:Despite its relatively small market share, retailers and brands should be wary before writing othe threat the company poses to established business models. In the low-margin world of grocery retail these additional costs leave many supermarkets making a loss on online orders. supermarkets. consequently have two alternatives - invest in automation or raise delivery fees. The scale and eciency of its logistics operations are likely to provide it with a competitive advantage in driving down costs, while at the same time its huge cash reserves enable it to absorb losses on delivery for longer than the traditional supermarkets.
ISSN:0017-4351