Monthly Archives: April 2014

Will “Click and Collect” Solve the Delivery Headaches for Grocers?

High delivery costs of standard online shopping will force grocers to invest more in click and collect services (TheGrocer).

How easy is it to order and pay form your groceries and then collect it from your favorite grocer? The money that the grocer saves by not delivering can be passed on to you, both you and the grocer are winning here.

What is the cost of delivering for Grocers?

Delivery costs are a hurdle for grocers making items more expensive. Adding delivery costs to the price can curtail online impulse buys.

If you are delivering goods to your customers you may be at risk losing them if the delivery is not on time, or the wrong items are packed. If your customers collect their purchase, problems with the purchase can be sorted out at the collection point.

Is Click and Collect the way forward for grocers?

Customers making use of “Click and Collect” can give supermarkets an advantage over pure online retailers because of their store network, warehouses and logistics. So, a customer coming to collect may sometimes browse in-store (Fin24).

According to TheGrocer, currently 35% of UK shoppers use click and collect, but it will rise to 76% in 2017.

Challenges that are facing Click and Collect grocers.

The implementation of collection facilities by grocers may pose new challenges (Fin24, The Telegraph):

  • Customers still have to wait at up to a day to collect their purchase;
  • Queues at the collection points is as long as queues at the tills in the shops;
  • Cost of staff picking the order from the shop;
  • Picking from the store disrupt inventory control.

The “Click and Collect” service that grocers implement is symptomatic of the pressures that online shops exert on them.

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Small Businesses Take a Risk by Not Having Business Plans

Results of recent research conducted among small business in the UK, showed that 70 per cent of companies with a business plan had made a profit, compared to 52 per cent of businesses not having business plans.

The don’t care attitude of small business owners

Ben Lobel, writing for smallbusiness.co.uk  mentioned that more than a third (34 per cent) of SMEs say they do not have a business plan in place, with 68 per cent of those citing the reason as ‘I don’t see the need’ with a further 10 per cent saying ‘I didn’t know I required one’.

It seems that more than a third of small business owners do not care about planning their business or does not know about a business plan. I think the situation may be even worst here in South Africa.

Reasons given by the owners why they do not have business plans

The research results also pointed out the reasons given by the small business owners why they do not have a business plan:

  • Creating a business plan take up too much time (23%);
  • Not aware there is help available (8%);
  • I am not good with numbers (5%).

Lobel reports that: ‘The fact that so many SMEs do not having business plans is worrying, not least in light of the fact that much of the UK economy depends on their success, representing over 99 per cent of all private sector businesses.’

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