Billa to Discontinue Czech E-shop, Focus on Courier Partnerships
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The Billa retail chain will cease operations of its direct e-shop in the Czech Republic on January 31, 2025, ending delivery of food and other goods to customers in Prague, Brno, and surrounding areas. The company will instead concentrate on sales and delivery facilitated through partner courier services like Wolt and foodora, aiming to expand its reach. This decision comes after the e-shop contributed to a notable loss for the company in 2023.
Shift to Courier Services for Wider Reach
According to Billa spokeswoman Dana Bratánková, the move to partner with courier services is driven by efficiency and increased customer access. Bratánková stated that while billa’s e-shop reached 1.5 million households, utilizing courier services expands that reach to 2.5 million households.
“Investments in technology and expanding the number of delivery points are so high that it is more efficient to deliver goods via courier services,” Bratánková explained.
Financial Losses Prompt Change
Billa experienced a loss of almost 63 million Czech crowns in 2023, a substantial downturn from the net profit of approximately 459 million crowns reported the previous year. According to Bratánková,the e-shop was a primary contributor to this loss,and the financial strain was expected to worsen in the following year. The financial information is available in the Collection of Documents on the Czech Ministry of Justice website.
Competitive Landscape of Online Grocery in the Czech republic
Billa’s decision reflects the competitive landscape of the online grocery market in the Czech Republic. Several other supermarket chains also offer online food delivery or pickup options:
* Tesco: Offers food delivery services.
* Albert: Provides food delivery to customers.
* Coop: Offers food delivery options.
* globus: Enables online order pickup at select branches in Prague (Zličín and Čakovice) and Ostrava.
* Penny: Collaborates with courier services for delivery.
The largest players in the Czech online grocery market remain Rohlík.cz and Košík.cz.
Pilot Program and Future Outlook
Billa launched a pilot version of its e-shop in the spring of 2023. The company assures customers that the e-shop will continue to function without interruption until its closure on January 31, 2025.
The shift to a courier-based model represents a strategic adjustment for Billa as it navigates the evolving Czech grocery market. By leveraging existing delivery infrastructure, Billa aims to improve efficiency and expand its customer base while addressing recent financial challenges.