Picnic, will this be the future?
Picnic is possible competitor of Albert Heijn and other supermarkets. A lot of startups tried to accomplish to be an online supermarket. Picnic is one of them. The different with Picnic is that the delivering costs are low because of a good logistic system, unlike other startups. Picnic does not have francize companies and does not have expensive buildings. Overall, this can lead to a low cost online supermarket company (z24.nl, 2015). Online shopping will be the new standard as if people are getting used to the fact that the daily groceries at scheduled times are delivered to the door. The consumentus digitalis is coming. Albert Heijn was for a long time the only supermarket with a delivery service. Nowadays, Jumbo also Jumbo started online shopping and a delivery service. Picnic is the first company that get guarantee very low delivery costs.
The online supermarket phenomena has a quite interesting history. In the United Kingdom, according to research of IDG, less than 5% of the daily groceries ordered online. So overall, as if it is possible for consumers to order groceries online, firms are losing money. In Netherlands less than 2% of the consumers orders daily groceries online. But, as I told before, as if people are getting used to it, it can be the new standard. Overall, selling food over the internet is not easy, but there are more products of which everyone mistakenly thought that no one would buy them digitally. A very good example is shoes. Zalando disrupted this market.
On the other hand, Albert Heijn targets consumers also in a inventive way. Albert Heijn opens stores, which are close to the consumer in terms of location and product offering. Molenaar (2013): in the Netherlands, we see a growth of one-person households. Smaller quantities, get something to eat on the go and not necessary eating at home are characteristics of this people. AH to go creates value for this kind of consumers.
What do you guys think? Will Picnic be the next big thing? I’m curious what the future holds.
FD (2015). Boodschappen bezorgen heeft de toekomst. Available at: http://fd.nl/ondernemen/1115647/boodschappen-bezorgen-heeft-de-toekomst
Z24.nl, (2015). 3 redenen waarom Picnic Albert Heijn en Jumbo pijn kan doen. [online] Z24. Available at: http://www.z24.nl/ondernemen/3-reden-waarom-picnic-met-succes-albert-heijn-en-jumbo-kan-kietelen-580179 [Accessed 22 Sep. 2015].
Rijlaarsdam, B. (2015). Zo maak je Albert Heijn weer succesvol. [online] NRC Q. Available at: http://www.nrcq.nl/2015/01/16/dit-is-de-to-do-list-van-de-nieuwe-directeur-van-albert-heijn [Accessed 22 Sep. 2015].