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Overall, the threat to food retailers from online stores is limited. This is because the sanitary requirements for selling fresh and frozen food are relatively high. A recently developed concept is the online ordering system with pickup at the facility at a later stage. This concept is gaining traction in France and England where about 2% and 4% of sales volume respectively is generated this way. In a margin-driven business, while sales volume generated through online activities increases, it would probably only have a marginal impact on the overall company results as the costs associated with this service are high.
Retailers without their own-brand products will most likely be unable to develop a meaningful online presence. In the same context and in related retailing activities, low-margin products (books) and media with a limited lifetime (fresh-food, newspapers) will be unable to develop a lasting mobile presence.
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