In-store and online grocery near profit parity

Online grocery is now profitable for supermarkets with total costs reduced to levels recoverable from customer charges, according to new research from Atrato.

The study found that in-store and online profits are now at near parity, with the coronavirus pandemic driving five years of growth in online grocery across just five months.

The research revealed that the near doubling of online grocery demand has halved delivery costs from omnichannel stores.

More than 80 per cent of online grocery sales are now estimated to be fulfilled directly rom stores.

Atrato said that omnichannel supermarkets have emerged as the "last mile grocery winners" with locations adjacent to large catchments and minimal delivery drive times.

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