Leshop.ch achieves new sales record
Leshop.ch, Migros' online supermarket, increased its sales by 6.6 percent or CHF 11 million in 2015. Customers shopped at Leshop.ch for a total of 176 million francs.
Switzerland's largest online supermarket has thus posted a significant increase in sales for the third year in a row. Growth was driven by orders from smartphones and tablets, the expansion of delivery services and more precise delivery times, according to a statement on Monday.
The strong franc left its mark on the retail trade in 2015, with many Swiss buying food abroad. Around 10 percent of Swiss retail sales, or 11 billion Swiss francs, are said to have flowed abroad, according to a Credit Suisse estimate. Pressure on prices also increased due to foreign e-commerce providers pushing into Switzerland. Contributing to Leshop.ch's nevertheless sustained growth trend has been the spread of smartphones and tablets across all age groups. More than 40 percent of Leshop orders already come from mobile devices. In addition, the expansion of services boosted the growth of Leshop.ch: Together with Migros, the online supermarket launched eleven PickMup pick-up points in Migrolinos, Migros shopping centers, and fitness centers in pilot operations in June 2015. At these locations, online customers can pick up their purchases ready-packed the day after they place their order.
LeShop.ch - Results 2015:
| 2014 | 2015 | 1st semester 2014/15 |
Development 2014/15 |
|
| Sales (million CHF) | 165 | 175.9 | + 6.5 million / + 7.8% | + 10.9 million / + 6.6% |
| CO2 savings* (tons) | 1292 | 1373 | + 17 / + 2.6% | + 81 / + 6.3% |
| Share of mobile orders** (smartphone, tablet) |
37% | 40% | + 4% / +11.4% | + 3 % / + 8.1% |
* LeShop collective delivery compared to motorized individual shopping.
** In each case for the month of December
Ernst Dieter Berninghaus, Head of the Retail Department at the Federation of Migros Cooperatives, says: "Experience shows: The more seamlessly we link online and offline offerings, the more loyal customers become. Those who use in-store shopping, home delivery, and pick-up services in combination buy more than twice as much as traditional in-store customers. That's why we're building on the cross-channel strategy as a Group."
From October, Leshop.ch also specified its delivery times: In over 40 Swiss cities, customers can choose between significantly smaller time windows for home delivery. Leshop.ch delivers in the morning between 9 a.m. and 12 p.m., at noon between 12 p.m. and 2 p.m., or in the afternoon between 2 p.m. and 5 p.m. In the city of Zurich, there are even four additional 1.5-hour time slots available in the evening from 4.30 to 9 p.m. The new time slots will be available in the afternoon. In this way, Leshop.ch aims to reach new customers: Offices or daycare centers have their purchases delivered in the morning, while professionals who work long hours use the time slots in the evening. At the same time, in October Leshop.ch became the first online supermarket in Switzerland to launch nationwide home delivery on Saturday mornings from 9 am. The two Leshop.ch Drive pick-up centers in Studen BE and Staufen AG developed solidly and also contributed to sales growth in 2015.
Growth spurt expected in online grocery trade
In Switzerland, the market potential for online grocery is far from exhausted. The e-commerce experts at Credit Suisse expect strong growth in the coming years: in the "Retail Outlook 2015" study, they forecast that the online share of the grocery trade will double from 1.7 to 3.5 percent by 2020. Leshop.ch CEO Dominique Locher says: "The cake that has not yet been distributed is big, and everyone wants to secure the biggest piece now. In this environment, we can win new customers with precise and fast services as well as cross-channel initiatives with Migros." A look at nearby countries shows that the market for online grocery shopping is on the move: In England, France, and Germany, various new providers are preparing to enter the market, including online giant Amazon with Amazonfresh.
