Food and Drink Internet Retailing in Norway

PROSPECTS

Growth is strong but profitability yet to be achieved

Food and drink internet retailing continued to record strong growth in 2018, with this expected to continue over the forecast period. However, the channel has yet to achieve profitability in Norway.

Delivery concerns require innovative solutions

Inventory management, food waste and storage temperature requirements are typical concerns in grocery retailing, and while food and drink internet retailing adds further specificities to these problems, solutions are being found and adjustments made. When it comes to delivery, companies are trying out innovative solutions.

Pure food box models may be too narrow to survive

Food boxes are fun and save consumers the hassle of picking up various ingredients in-store, or so the advertisements say. Food boxes are convenient; however, the customer still needs to buy some basic ingredients.

COMPETITIVE LANDSCAPE

Kolonial’s debts grow faster than its sales

Kolonial is a pure online grocery retailer. Its main competitor, Marked.

Meny’s online store struggles to attract customers beyond Oslo

The supermarket Meny doubled its online retailing value sales in 2018. However, the online channel still accounted for less than 1% of its total turnover.

The dense network of grocery retailers hampers stronger penetration

The main obstacle to stronger growth and also one of the main reasons hindering profitability is the dense network of discounters and supermarkets in Norway. Food and drink internet retailing entails high delivery costs which cannot always be passed on to the end customer.

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