Co-operative to debut online grocery business

Co-operative: Launching on online grocery business
Co-operative: Launching on online grocery business

The Co-operative Group plans to launch a grocery home-shopping business next year in an effort to increase its 'share of wallet'.

The 3000-store convenience retailer is 'investigating opportunities' to create an online transactional business, which will be ready to go live by 2012, according to Helen Bridgett, head of strategy, insight and planning at The Co-operative.

'We can be a bit different from other retailers' online offer. We are a small-store proposition and customers buy certain products from us more,' she told Marketing at the IGD (Institute of Grocery Distribution) online retailing conference last week.

Bridgett, who spent seven years at, latterly as head of marketing, said The Co-operative was trialling a 'number of things' and had the benefit of seeing what was working for other retailers.

However, she added that it was unlikely to run a TV campaign to promote the service's launch, instead favouring other channels, such as social media.

'The big ad campaign might not be appropriate; we will look at what is better suited. We will never be a £70-basket store or a global retailer, but we can increase our share of wallet. Some people question the point if you're selling only a few products online, but look at Domino's - it has built a bloody good business,' she said.

'People say they are willing to buy groceries online through their mobile. But are they more likely to spend £70 or £25? I think £25, and they will probably buy less, more frequently.'

She concluded: 'Convenience is mobile; the mobile phone is the new convenience shop.'

The online launch would not be from a standing start. The chain already offers a delivery service from 260 stores, whereby customers shop in-store but the groceries are delivered later. This was a service offered by Somerfield, prior to its acquisition by The Co-operative.

Last week, the company announced it was adding QR codes to fresh-produce packaging to provide extra information about suppliers and nutritional content.

However, Bridgett said that, while the content was rich, she was not convinced people were using the codes. 'Maybe when more people have smartphones, it will work. I would say the jury is still out; QR codes haven't worked yet for us,' she added.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message