In a recent Citywire interview, ex Sainsbury's CEO Justin King discussed the importance of supermarkets to the grocery operators.
Key takeaways:
- Omnichannel stores (facilitating in store shopping and online fulfilment) are key for sales generation and online distribution
- Supermarket yields trade far above that of distribution warehouses - despite omnichannel supermarkets offering similar characteristics as last mile logistic centres
- The Amazon purchase of Whole Foods highlighted the importance of well located bricks and mortar stores for a successful grocery business