Kernel
Posts: 395
Joined: Sat Mar 03, 2012 12:53 pm

Re: Tesco Homeplus Subway Virtual Store in South Korea

Fri Mar 16, 2012 7:05 pm

http://www.littledoremi.com/te.....uth-korea/

This is quite interesting - and time-saving now while you wait you can browse the store

(you can also browse the stores using smartphone apps in most countries but it isn't the same feeling!!)

User avatar
tzj
Posts: 302
Joined: Thu Jan 05, 2012 3:09 pm
Location: Barnsley, SY, UK

Re: Tesco Homeplus Subway Virtual Store in South Korea

Fri Mar 16, 2012 7:35 pm

there"s me thinking tesco was just a UK affair
http://www.themagpi.com <---- Checkout the MagPi
(The MagPi - Co-Founder)

Skygod
Posts: 211
Joined: Wed Sep 21, 2011 7:22 am

Re: Tesco Homeplus Subway Virtual Store in South Korea

Sat Mar 17, 2012 3:51 am

Big in Thailand as well. New stores opening all over the place.

Link

User avatar
riffraff
Posts: 307
Joined: Tue Sep 27, 2011 3:17 am
Location: Newnan, Georgia, US

Re: Tesco Homeplus Subway Virtual Store in South Korea

Sat Mar 17, 2012 8:31 am

Margins in this type of enterprise are extremely thin. Only works in small areas with extreme population density. We had WebVan, an internet grocery, in our city in the late '90's that quickly went belly up. I worked at a pharmacy at the time, and our wholesale pharmaceutical distributor, McKesson, had an almost identical operating model. Same delivery vehicles, same tote bins, same type of handling machinery in their warehouses.

Margins for pharmaceuticals are far better than groceries, and even McKesson was refining their delivery system, selling off their private fleet and switching to contracted owner-operators for deliveries.

It was just a tragedy to lose the grocery service. Though the prices were on the the high side, sitting down at a computer and precisely planning your menus for an entire week or two saves a bundle in the long run. In retrospect, that very behaviour may have contributed to their downfall.

The one thing that these guys may have going for them is their point of purchase model. It lends itself to impulse buying, and that may make the difference in success and failure for them.

Return to “Off topic discussion”