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Delivery hurting Grocers

Grocers charged into delivery to meet a surge in demand sparked by the coronavirus crisis, though many haven’t figured out how to get food to customers’ homes profitably and some wonder if they ever will, according to the Wall Street Journal. Retailers have modified their operations to manage the jump in delivery demand, hiring thousands of additional workers and devoting some stores to fulfilling online orders. That work is pushing up costs that eat into the margins on delivery sales, echoing trouble restaurants have had in delivering food to customers while also trying to protect their bottom lines.

  • Delivery remains popular with consumers: Online grocery sales rose 65% to $6.6 billion in May from March. About 43 million customers shopped online last month, up from 39.5 million in March. [WSJ]

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