Co-op quits online grocery service

Co-op FoodA year ago the Co-op announced plans to launch an online grocery shopping service. Now, today’s Evening Standard reports that they’ve quietly dumped the attempt having found that it merely cannibalises instore spending.

According to the Standard, the Co-op will now focus on revamping their smaller stores aiming to win market share from Tesco Express and Sainsbury’s Local. However don’t think that the Co-op are ignoring the Internet entirely, they still have their banking and funerals as well as their insurance travel and Electrical stores online and of course they still have the Co-operative Food website, it’s just not transactional.

The Co-op are also hosting Amazon Lockers in many of their local stores which must increase footfall and they don’t ignore eBay either. Although you won’t find a Co-op branded shop, they trade as Electrical 123 on eBay and since July 2012 have amassed almost 50,000 feedback.

Having trialled click and collect, the Co-op still have their “Spend £25 in-store and get free home delivery at a time of your choice” service running.

The Co-op may attempt to launch a click and collect grocery service again at some point in the future, but for the moment, for one business at least, the Internet would appear not to be the cash cow everyone assumes it always is.