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Ocado puts brakes on expansion as online grocery demand eases

Clicks need bricks: A major strength of the omnichannel model used by the UK’s major grocers to fulfil online grocery demand, is its ability rapidly adjust capacity to meet the changing demands of customer shopping behaviour.

This Financial Times article highlights some of the challenges of the centralised customer fulfilment centre (“CFC”) model as shoppers return to stores post pandemic.

Andrew Gwynn at BNP Paribas comments “If [operators] are unsure where online demand is going and about the profitability of CFCs. It’s surely safer to stick with in-store picking.”

Read the full article here.

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