As the collaborative economy develops, leading Scandinavian discounter REMA 1000 has developed VIGO, a new convenient shopping and delivery solution in Denmark.
- Choose from over 1,000 products
- No minimum spend for delivery
- Receive deliveries between 08:00 and 21:00 daily
- Embedded functionality through the existing REMA 1000 app
Online, REMA 1000 emphasises how the purpose of the new solution is to pool common resources so people can help one another.
Ahead of the launch on October 25th, the retailer is running a recruitment competition to encourage people to become deliverers. By signing up to participate, entrants can win a Macbook Pro, an Apple iPhone 7 or a scooter. Recruits can typically earn DKK 40 - 70 (€5.37 - €9.38) per hour depending on how many products are ordered.
Our view: convenience using a low cost model
This initiative should allow REMA 1000 to reach a wider audience of shoppers who are looking for increasingly convenient delivery solutions, while paying people depending on the volume of goods delivered helps tie in with the retailer’s low cost operating model.
The move also helps REMA 1000 stand out in a crowded grocery retail market and offer a delivery solution, without the significant level of investment in an online full service, as shown by competitor Coop Danmark and pure play online retailer nemlig.com.
IGD identified the peer inc. economy demonstrated here as one of the trends to watch in 2016. It has the potential to disrupt traditional business models, the way people shop and their desires, as people move away from buying goods and products to buying services and/or hiring out their services and skills. To read more about this and other global grocery trends, click here.
Potential concerns about freshness and substitutions
However, some shoppers may have concerns about third-party staff shopping and delivering on their behalf, for instance, whether participants have been trained to select the freshest products and what might happen if a product is out of stock.
Who else is doing something similar?
Elsewhere, in September last year, Amazon launched a similar delivery model, Amazon FLEX which enables anyone over the age of 21 with a car and a valid driving license to deliver goods to its Prime Now members in Seattle. Amazon claims it has attracted thousands of partners to the scheme and is rolling out this service in the UK.
REMA 1000: next phase of online investment?
In its home market of Norway, last month REMA 1000 acquired a 10% stake in pure play online retailer, Kolonial.no as it looks to capitalise on growth of the online channel. REMA 1000 has supplier Kolonial with products since 2014.
|This article was written by Harriet Cohen, Senior Retail Analyst. Harriet is responsible for shaping IGD's research into Scandinavia; as well as contributing to IGD's broader European research programme. Harriet regularly travels to markets in the region, visiting stores and engaging with retailers and manufacturers. She brings five years of experience working for leading UK retailers to IGD. To learn more about how IGD's research can benefit your business further, please get in touch. |
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