Thread by @_inpractise

Why don't US grocers use in-store picking to serve online customers similar to the UK?

$OCDO $WMT $KR

The Big 4 in the UK all use in-store picking to serve online customers.

UPH for in-store picking

UK = 140
US = 40
$OCDO OSP = 180

Both Tesco and Sainsbury's chose in-store picking vs a centralised fulfilment method online.

Is this just an interim solution?

It's estimated that in-store picking is 3% of sales which is similar to $OCDO cost even though Ocado UPH is 180 vs 140 in-store

US Grocers are operating at around 40 UPH which suggests there is huge upside to picking more in-store, improving UPH, save costs on CFC buildout and ship from stores which are closer to customer?

This also leaves an interesting question as to the endgame for Instacart?

inpractise.com/articles/ocod-…