Picnic, a Dutch pure play online retailer has launched in Germany.
App based service
Picnic has been launched in the Dusseldorf region and offers low prices and free delivery. In October 2017, the retailer first launched a trial in Germany under the Sprinter Supermarket brand, offering the service to a limited number of households. Following positive feedback from German shoppers, it is now officially launching under the Picnic name. By the end of 2018, Picnic plans to expand to up to five German cities and then to a further 20-30 by the end of 2019. It will also be building a dedicated distribution centre in Viersen.
Picnic's rapid expansion in short time frame
The online retailer, which was only established in 2015, has also been rapidly expanding in its home market. Most recently, it began delivering groceries in Amsterdam earlier this month. It also serves a further 30 Dutch cities, including the Rotterdam area. Commenting on its expansion to Germany, co-founder Michiel Muller said, ‘The pilot results are promising and we’ve set up a completely German infrastructure that’s fully able to handle the demand’.
German online market growing
The German online channel has been slowly growing and since the launch of Amazon Fresh, the major retailers have increased their focus on this opportunity. Both Edeka and Rewe have recently announced developments in the channel, reflecting the increased interest from shoppers. Picnic sees lots of potential in the German market as online supermarkets have not yet become fully established, meaning there is a lot of room to grow. Additionally, the German grocery market is significantly larger than the Netherlands, providing a big opportunity.