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4 | The Grocer | 10 August 2019 Get the full story at thegrocer.co.uk
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Co-op paves way for
nationwide online
shopping rollout
The Co-op has ramped
up its use of couriers for
on-demand delivery, in
a move that could pave
the way for a nationwide
online shopping rollout.
The convenience
retailer is increasingly
working with specialist
fulfilment firms that link
its software with that of a
network of courier com-
panies including Stuart,
Gophr and City Sprint, as
well as taxi firms.
A partnership with one
such firm, Lineten, has
recently been rolled out
from three Co-op stores
to a total of 15 across the
country, including in
London, Glasgow and
Bristol, providing deliv-
ery of in-store shopping.
The Co-op also con-
firmed this week it was
working with a second
such company, Bringg, toprovide the online shop-
ping service it launched
earlier this year at shop.
coop.co.uk.
So far that’s limited
to London, but using
Lineten for home deliv-
ery of in-store shopping
elsewhere in the UK
means the infrastruc-
ture is already in place to
bring those stores online
as Lineten specialises in
integrating courier firms’
software with retailers’
e-commerce sites.
Meanwhile shop.coop.
co.uk was due to roll out
from nine London stores
to a further 13 across the
capital “in the next few
months,” a Co-op spokes-
man said.
So far Bringg had inte-
grated the Co-op’s site
with couriers Stuart and
eCargo, but the “capa-
bility exists to integrate
more couriers throughthis service”, according
to the spokesman.
“The Co-op will review
both [Bringg and Lineten]
offerings during these tri-
als as it works to explore
last mile opportunities to
deliver ease, choice and
convenience that meet
the shopping needs of
members and customers
in its communities,” said
the spokesman.
The Co-op is also tri-
alling Deliveroo at more
than 20 stores, includ-
ing in Manchester and
London, and delivery by
robot in Milton Keynes.
But those trials involve
orders being placed on
the delivery provider’s
website or app, while
using couriers through
companies like Bringg
can enable the expan-
sion of the Co-op’s own
e-commerce operation,
potentially nationwide.Steve FarrellPoundland claimed the
discount was a ‘proposal’
Poundland has
demanded a 2% discount
from suppliers backdated
almost a year in a move
branded “straight bully
boy tactics”.
In a letter to suppliers
dated 26 July, Poundland
head of trading Tim
Bettley explained the
company was outper-
forming the market
before demanding a 2%
rebate backdated to 1
October 2018.
The letter, seen by The
Grocer, also demanded
an ongoing 2% dis-
count, payable in quar-
terly rebates. The first
payment, covering the
backdated period, was
demanded by 9 August.
Bettley’s letter pointed
to Poundland’s fixed
price points and result-
ing inability to manage
‘margin through price
increases’ as the need for
the demand.
‘That’s why we would
like, as a matter of impor-
tance, to discuss how
we share the benefits of
the volume growth that
we’re currently provid-
ing, to properly reflect
a business model that’s
different to most other
retailers,’ said the letter.
Poundland faces
‘bully’ claims
over backdated
cost demands
‘We are therefore pro-
posing a 2% rebate on all
cost of goods sold into us
from 1 October 2018 until
end of July, payable by 9
August.
‘We also propose an
equivalent 2% rebate
on all cost of goods
ongoing, payable end
of September 2019 and
quarterly thereafter
(December 2019, March
2020, June 2020) etc via a
cash transfer to cover the
balance of this financial
year and on-going.’
One supplier source
said: “With the fur-
ther weakening of the
pound, and the burden
of an offer with a ceiling
price on a large percent-
age of its merchandise,
it is not a surprise that
Poundland is feeling
pressure.
“But what they are
doing is either an act of
desperation or straight
bully boy tactics, which
are not acceptable and
likely not to be effective
in the longer term.”
A Poundland spokes-
man said the 2% dis-
count was a “proposal,
not a unilateral demand”.
He said the letter was
sent to suppliers in the
Far East via its general
merchandise sourcing
operation Pepkor Global
Sourcing.
“As it makes clear,
we’re performing well,
and GM suppliers are see-
ing the benefit of that and
unlike other retailers,
as a simple price point
retailer, we’re unable to
increase prices.”The Co-op is using online delivery specialists that could enable nationwide expansionSteve Farrell
TAKING A POUNDING
What they are doing is either an act of desperation or
straight bully boy tactics – supplier source