Trade
Per Andreas Juell (62) were among the pioneers for groceries on the net, but was forced to stop. Now accuse him of the newcomers for it locked.
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In the nearly 20 years he sold groceries on the web through the trademark Right to your Home. Now it’s over for Per Andreas Juells Directly Home to Norway.
In the course of the last couple of years, this part of the retail market turned on its head with new entrants in the Market.en and Colonial.no.
– The new players have helped to destroy a good shop. The whole basis is gone. It is wistful, sad, and unfair. Such is life, ” says Andreas Juell.
All dagligvareaktørene on the internet have in common that they do not serve money, partly because of price pressure and partly because of the high distribution costs to the customers.
– We could not continue, ” says Juell.
Alexa
Now the dealer Directly Home to Norway with creditors to avoid bankruptcy. The online store to the Right Home is now taken over by the “Totally obvious on the job” owned by Euromiljø group and Ole Anders Aagaard. The concept is adapted and operated on in conjunction with another business in the group.
Juell is critical to how new entrants as Colonial.en and the Market.now destroy the market while the driver with the current deficit.
We have done a good business for many years, until we got competitors that do not need to earn money. It will never be possible to make money with those prices, he says.
He emphasizes that he is not against the competition.
– the Normal competition is only healthy, but in this case it does not matter what you do. It would not have been possible for anyone to earn money with the current price level, regardless of turnover, ” says Juell.
He believes that the Right Home has been a good purchasing terms, but claim that the new players must add on the price with a minimum of 20 per cent from the current level to drive profitability.
– the Way they get the drive with the help of investors, make sure they can sell many goods cheaper than we could buy in for. They’ll only run on while we that can’t operate at a loss must go to heaven.
Need to put down the prices
Karl Munthe-Kaas, who is the founder and chief of the Colonial.no, thinks the newcomers have a completely different offer than the Right Home. The price level is lower and that the selection and the customer experience is something completely different, according to the Colonial commander.
– the Goal is to build a large scale to have low costs and low prices, ” says Munthe-Kaas.
He claims that Colonial has already been more than ten times larger than the Right Home.
No one in this market, hide the fact that they lose money. The price level is still set to keep in the long term. E-commerce with groceries today is something completely
Several companies are now trying to establish themselves within the groceries on the net:
- Colonial.en: Gründerfellesskap’ve got external investors such as Retail and private equity funds. Approaching a turnover of 500 million a year, according to the company.
- Market.en: Sten Erik hagen’s netthandelselskap Complete.en is the largest owner in the Market.now in the year will have a turnover of under 100 million. Other investors have mindretallsaksjonærer.
- Norgesgruppen: Supermarkedkjedene Save and Menu have started online shopping with coverage located on the Eastern part of norway in the first phase. Menu has the ambition to come up in a half a billion relatively quickly.
- Several smaller companies and matkassetilbydere also operates the sale of groceries on the web.
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other. To build this as an industry, we need to invest, and it is the investors with.
Stine Røsand, who is the chief in the Market.now, also think it is possible to make money in the long term.
– At the market you can easily shop for groceries at fixed, low prices. It goes without saying that we can’t take 20 per cent higher price than the Rema, Kiwi and Coop Extra. Then we had not delivered on what we say that we should be – easy and cheap. We have a business model which will eventually provide the economic operation with current price levels, ” says Røsand.
the first wave
Originally was the Right Home an attempt from Stein Erik Hagen and Hakon Gruppen on to establish the groceries on the net during the first wave in the late 90′s. As one of the key people got Juell the opportunity to buy the Right home when the Ica dropped further matsalg on the web in 2004. In the years that followed was Follo-the man the sole owner in the Right Home.
In the many years went Straight Home with the profits by selling groceries in the residential and in the business market – all the way to the new nettaktører came on the field.
Dropper home
The new owner of the online store will not operate the home delivery of goods to retail customers how the newcomers do.
– We will not run the same race as Directly Home to Norway. We will not bet on the private market, ” says Jan Geir Emanuelsen.
New Law Home turns instead towards the business market where they cover some other needs. In addition to that the company now has taken over the online shop with a selection of groceries, has Euromiljø group in several years built up a larger business based on kantinemat, lunches and jobbfrukt.
– In this market, it is just a price competition. We believe not to compete with Colonial and Market. There is not enough money in the to pick and run out the goods. We do not anticipate this will turn around over night, and will not be on the prisgaleien, says Emanuelsen who work in it in the takeover company Euromiljø.
Juell is critical that the Colonial has received support from Innovation Norway.
Those who have been innovative are the ones who started first.
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