Trade publication LSA reports that Carrefour is preparing to extend the coverage for its home delivery in its home market to all urban areas with more than 10,000 inhabitants by 2020.
Two-hour service to be the standard
According to the reports Carrefour will offer a two-hour delivery service or for orders to be ready for collection in-store in the same timeframe, for shoppers making grocery orders. Non-grocery orders will be able to be collected in-store in two hours, due to the lower cost impact for Carrefour. The retailer has also said the initiative has been trialled in Spain and has helped bring back lapsed shoppers to its stores.
To meet this initiative, Carrefour will invest strongly in its supply chain to enable it meet shoppers’ demands for fast paced fulfilment and for delivery to multiple locations. To meet its 2020 target, Carrefour will offer home delivery in 45 cities, before extending it to all cities with more than 10,000 inhabitants for 2020. To enable non-food orders to be added to 189 stores initially, Carrefour will provide a more transparent view on its in-store stock levels, while from the beginning of July it will align prices between its online store and those charged in-store. The retailer is hoping the new service will lead to the number of click and collect orders to reach more than 800,000 by the end of 2019, up from nearly 30,000 in 2018. By 2020 it is targeting 1.35m orders.
Different fulfillment options to enable orders to be collated
To meet expected demand Carrefour is set to open a new online-only fulfillment centre to the south of Paris, while more hypermarkets will be used to fulfill orders as well. Indeed, it is likely that Carrefour will use dark stores for high density areas like Paris or Lyon, while in-store picking will support fulfillment in low population density areas. At the end of 2018 Carrefour collated orders at 52 stores, including 23 hypermarkets, while by the end of 2019 the service is expected to be extended by the addition of 42 further stores, including 26 hypermarkets.
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