Skip to content
Search
AI Powered
Latest Stories

52% of UK grocers can’t return a profit from online orders

Despite the rising consumer demand for digital, over half (52 per cent) of UK grocery retailers aren’t currently able to fulfil ecommerce orders via the store network profitably, the latest research from electronic shelf label (ESL) provider, Pricer, shows.

With the latest data from Edge by Ascential suggesting that the growing demand for digital will prompt retailers to dedicate up to a third of their store space globally to ecommerce order fulfilment, original research of 100 senior UK retailers by Pricer, showed that in response to the rising demand for online, almost three quarters (72 per cent) of grocers have increased replenishment through their store network, and two thirds (64 per cent) have increased stock allocations in-store to keep up with rising ecommerce demand.


Meanwhile, over half (54 per cent) of UK supermarkets have increased store staffing to allow them to pick and pack online orders fulfilled from the store, with almost a quarter (23 per cent) saying staff are having to perform more tasks to service ecommerce orders at store level.

However, less than half (48 per cent) say they are currently fulfilling online orders from the store profitably. And, while almost three in ten (27 per cent) expect to return a profit from ecommerce orders fulfilled via bricks-and-mortar networks within a year, five per cent say they don’t expect ever to be able to achieve profitability with these types of orders.

At a time when inflationary pressure is being felt across retailers’ manufacturing, supply chains and labour costs, further squeezing already tight margins, 45 per cent of the senior retail Operations executives polled said that maintaining margin and keeping online orders profitable while meeting customer demand for digital was one of their main challenges. And half of UK retailers (50 per cent) say they have looked at cost saving exercises elsewhere as they don’t make money on online orders fulfilled through the store.

“Retailers are walking a fine balance between what consumers are now demanding from the store and what is operationally sound – and profitable – to offer," sad Duncan Potter, CMO at Pricer. "There’s no denying that shoppers are continuing to demand digital – but making digital pay when it is being fulfilled from the store network is a conundrum many are still to solve.”

More for you

Bira engages with Treasury on Budget fallout, business rate reform
(Photo by Christopher Furlong/Getty Images)
Getty Images

Bira engages with Treasury on Budget fallout, business rate reform

Independent retailers association Bira has held a meeting with members of the Treasury team to discuss concerns following its robust response to the Government’s recent Budget announcement.

The Budget, labelled by Bira as "devastating" for independent retailers, was met with widespread indignation from Bira members.

Keep ReadingShow less
East of England Co-op achieves 70 per cent productivity boost with Electronic Shelf Labels

East of England Co-op achieves 70 per cent productivity boost with Electronic Shelf Labels

East of England Co-op said it has improved labour productivity whilst improving customer service delivery in-store with an Electronic Shelf Label (ESL) solution from Pricer, the leading in-store automation and communication solutions provider.

Established in 1861, East of England Co-op is now the largest independent retailer operating in the East of England. In addition to the 120 food stores it operates in the region, the regional cooperative also offers customers specialist services, such as funerals, security, travel agents and petrol filling stations across Essex, Suffolk, Norfolk, Cambridgeshire and Hertfordshire.

Keep ReadingShow less
PayPoint

PayPoint delivers strong half-year results; retail network crosses 30,000 sites

PayPoint Plc has on Thursday has announced a robust financial performance for the half year ending 30 September, making continued progress towards achieving an underlying EBITDA of £100 million by the end of FY26.

The company’s UK retail network increased to 30,151 sites during the period, from 29,149 at the end of the previous fiscal year. 70 per cent of these are independent retailers, and the rest in multiple retail groups.

Keep ReadingShow less
Johnson & Johnson office

Johnson & Johnson office in Irvine, California

Photo by Mario Tama/Getty Images

Johnson & Johnson risks UK lawsuit over talc cancer claim

UK claimants announced Wednesday legal action against US pharmaceutical and cosmetics giant Johnson & Johnson, alleging that women diagnosed with cancers were exposed to asbestos in the company's talcum powder.

J&J risks UK court action for the first time over the allegations, having faced a series of similar lawsuits in North America.

Keep ReadingShow less
Glebe Farm Foods: 'best-in-class' for Food Safety Standards

Glebe Farm Foods: 'best-in-class' for Food Safety Standards

Glebe Farm Foods has announced that its site has been awarded AA+ grade following the recent unannounced audit against the BRCGS V9 standard.

The BRCGS Global Food Safety Standard is a globally recognised certification program designed to ensure the safety, quality, legality and authenticity of food products. This was the first unannounced audit for the site and included all the production facilities; de-hulling, flaking and flour, oat drink manufacturing and Tetrapak filling, and new to the scope was the manufacturing and packing of Granola.

Keep ReadingShow less