How dark stores keep their promise of 10 minute grocery deliveries and how data can help them in the long run
Dija, Gorillaz, Cajoo. These companies are newly founded European startups that have raised tens of millions of dollars (Gorillas had raised around 330M$ just 10 months after it was established) on the promise of delivering groceries in 10 to 15 minutes within their catchment areas.
Part of the challenge lies in finding the best locations for their warehouses
What’s their secret? The answer is as simple as the roll out is complex: these companies decided to set-up dark stores (converted supermarkets or former supermarket spaces converted into e-commerce warehouses offering no physical retail experience) throughout cities in order to bring a carefully targeted and priced supply closer to the demand.
Therefore, part of the challenge lies in finding the best locations for their warehouses.
In this “winner-takes-all”, business oriented, low margin market, execution is key. A company must open multiple stores at the same time in order to take the market, but they have to keep an eye on future profitability by selecting viable locations (eg. well positioned locations able to serve the greatest number of people whilst not exceeding the 10 minute delivery promise).
The expansion team is tasked with opening tens of dark stores across Europe, hoping that the abstract criteria designed today will be validated tomorrow by the successful roll out of the business.
They know their target: individuals between 15 and 45 years old, connected, enjoying median purchasing power, and accustomed to food deliveries. But how can one precisely locate this crowd and when (if?) found, how does one make sure that the dark store will be right in the centre?
If the competitive pressure were not as big, a company could take the time to run census data analyses city by city to find the perfect location, but this is not the case.
What if a solution existed that let you connect to a software, select geographical locations, list all your criteria, and let AI do the work of finding the best down-to-the-meter locations for you?
At sympas.io, we firmly believe that data can and should be at the heart of every retail-location decision and our tool has been designed with this vision in mind.
Symaps is an AI-powered location intelligence platform that helps you find the best locations for your business.
With a strong focus on retail, FMCG, and real estate, Symaps combines the power of machine learning & AI and acts as the backbone of companies for whom location matters when it comes to making key strategic decisions.
Our proprietary machine-learning algorithm actively learns what drives your business success and offers advanced data capabilities and predictive technology to empower a company of any size to perform in-depth market research and gain strategic insights in a matter of minutes.
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