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Home » Ahold CEO Discusses Where the Internet Is Taking Retail and the Grocery Business

Ahold CEO Discusses Where the Internet Is Taking Retail and the Grocery Business

July 11, 2013
McKinsey & Co.

"To understand global trends in retail, you have to look at things from the perspective of a customer who can get everything via the internet," Boer says. "Ten or twenty years ago, you had to go to a hypermarket. I opened my first hypermarket in the Czech Republic in 1998, and it was a big event. We had traffic jams outside the store. We had 50,000 to 60,000 SKUs in one store, from electronics to food. Today, you can get many of these things online, so you don't need to go to the store.

"What we've learned over the past ten years is that supermarkets ought to focus on the experience of fresh foods. That's the name of the game for supermarkets because it gives the customer a reason to go to the store. I also think convenience"”having your goods readily available and near the customer"”is important. Supermarkets are convenient for weekly shopping trips, but smaller stores are a great opportunity to get closer to the customer. On top of that, you have to have an online offering as an extension of the store. Customers want to be surprised at what they can find online"”maybe the authentic Tuscan olive oil isn't on the store shelf, but you can find it online. So that's my view on food retailing today: freshness, convenience, and a large online offering are key."

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Keywords: retail supply chain, supply chain management, online retailing, e-tailing, online grocery shopping, logistics & supply chain

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Business Strategy Alignment Global Supply Chain Management Consumer Packaged Goods Food & Beverage High-Tech/Electronics Pharmaceutical/Biotech Retail
KEYWORDS Business Strategy Alignment consumer packaged goods Dick Boer E-Tailing Food and Beverage Global Supply Chain Management High-Tech/Electronics logistics & supply chain McKinsey & Co. online grocery shopping online retailing Pharmaceutical/Biotech Retail retail supply chain Supply Chain Analysis & Consulting Supply Chain Management Supply Chain Management: Retail
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