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11.4.2020 Katrijn Gielens, Els Gijsbrechts and Inge Geyskens Big box stores have spent years developing technology capabilities to compete with Amazon and other digitally savvy competitors. While no one could have foreseen Covid-19, these chains’ investments in click-and-collect technology allowed them to cash in when the coronavirus pushed sales online. Order fulfilment is a costly and difficult challenge that must be mastered for online grocery success.
Digital disruption is changing the way brands are sold to consumers (Gielens and Steenkamp 2019). One development that offers both great potential as well as poses significant challenges to brands is the rise of the digital (“online”) sales channel (Steenkamp 2020). In many industries ranging from books and apparel to electronics and music, online sales account for a large portion of total brand revenues (Web Retailer 2019).
1.8.2020 Jonne Y. Guyt and Els Gijsbrechts Bigger is often better when it comes to retail promotion innovations: Amazon’s Prime Day and Kroger’s Cart Buster (also known as mega sales) are cases in point.
Pressured to defend their sales against (hard) discounters such as Aldi, Lidl, or Walmart, traditional grocery retailers have increased their promotional activities considerably in recent years (Gauri et al. 2017; Planet Retail 2016). Studies suggest, however, that simply offering more or deeper discounts hardly generates incremental increases in traffic or sales.
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