Dutch online supermarket Picnic has shown that free delivery can be profitable with efficient last-mile organization. Founder Michiel Muller reveals that the company’s recent profit milestone is attributed to investments in robotization and collaborations with industry leaders like German retailer Edeka.

Picnic’s focus on urban areas has significantly boosted delivery efficiency, allowing for up to six deliveries per hour compared to competitors managing only two or three. By optimizing the last mile, Picnic maintains its commitment to free deliveries, emphasizing that their efficient approach outweighs the costs competitors pass on to customers.

With a strong customer retention rate, Picnic benefits from loyal clientele who continue to order regularly. The company’s success in the Netherlands has prompted plans for expansion into larger markets, with a strategic eye on countries with substantial consumer bases.

Despite its domestic achievements, Picnic faces challenges in international markets. Northern France presents economic complexities, while the shopping habits of Parisian consumers differ from those in other regions. In Germany, executive recruitment remains a hurdle for the company’s expansion efforts.

Looking ahead, Picnic is prioritizing growth in Germany and France before considering further European expansion. The company’s long-term strategy involves targeting major markets rather than smaller territories, positioning Picnic for sustained success in the competitive online grocery sector.

Stay informed with the latest retail news by subscribing to our newsletters for updates on industry developments.