Grocery Checkout

KEY ISSUES

The main issue was to either consider a new expansion opportunity or look into selling GCO to an interested party.   There are a number of different suggestions to help expand the company; one of the options was whether the Western location was a good decision and if the cost of the expansions will benefit the company’s future, financially.  

ANALYSIS

Grocery Checkout Overview

Grocery Checkout is an online grocery service marketed towards Western University student, professionals, families, disabled and those who demand quick grocery delivery to avoid actually having to physically go to a grocery store.   His has successfully grown since it was founded in 2005 to a company by 2009 having generated $1,056,724 in sales.   When orders are placed GCO ensures quick next day delivery within one hour times slots that their consumers choose.   In order to keep costs low GCO has low overhead keeping staff and inventory storage low.  

GCO main competitors are Loblaws and Valu-Mart, however both are not within walking distance for students.   There is no actual direct competition other than another company in the GTA.   This proves GCO to be its own direct competitor within its field and allows for easier access to market towards consumer demands for quick, efficient service of quality groceries at a comparable price.  

Customers wanting to place an order can go online to GCO’s website, sign in and begin searching for household products they are in need for.   Everything is laid out in categories and is easily accessible, prices and descriptions make it easy for customers to choose between specific products and sizes.   A minimum of $50 is required, and on average customers spend around $110.   Delivery and taxes are added on.   Customers can then choose a two hour time slot when they would like to receive their groceries and that same morning they will receive a reminder in order to keep a positive communication between the customer and GCO....