Denmark: Føtex will soon be launching an online store
Online grocery sales are still not a particularly large market compared to physical grocery sales, but the area is growing, and several large chains such as Coop, Bilka and Netto are already “on the ball”.
- Føtex is a Danish chain of supermarkets.
- The name "Føtex" is a mix of the Danish words "Fødevarer" (daily groceries) and "Textil" (textiles).
- Herman Salling opened the first Føtex shop in 1960 in the city of Århus in Denmark.
- Føtex entry into the Danish market revolutionized the way in which the Danes shopped: This was the first time the Danes saw a non-food (textiles, clothes, perfumes, books etc.) and a food department gathered under one roof.
- The chain consists of 103 stores located all over Denmark.
And now Føtex's chain director, Thor Jørgensen is considering the idea of launching a click-and-pick solution for online shopping, writes Dansk Handelsblad.
Online drives loyalty
Thor Jørgensen says that there is not much money in selling food online:
"But we see that it drives loyalty in the long run. So, we need to be available to customers wherever they are across all formats. Digital presence is important to increase and maintain relevance. At the same time, we must constantly focus on and expand the classic retail virtues in the physical stores," says Thor Jørgensen to Finans.dk.
Salling group facts
- Salling Group A/S (formerly Dansk Supermarked A/S) is Denmark's largest retailer with a market share of 35%.
- Salling owns several chains of stores - Netto, Føtex, Bilka and Salling.
- All operate exclusively in Denmark except Netto.
- Netto has expanded into Germany, Poland, Sweden (sold to Coop).
- Netto made two unsuccessful attempts at operating in the United Kingdom.
Jørgensen says the profitability in online food sales is low. The former consultant is regarded as a number crusher of rank and in a short time has climbed almost to the top in the Danish grocery industry.
He will try to speed up Føtex shops and is responsible for the digital development of the Salling Group, Denmark’s largest retailer-group.