🤖 Picnic Hits First Gross Profit
In June 2024, Dutch online supermarket Picnic reported its first gross profit since its inception in 2015. This achievement was attributed to significant investments in robotisation, according to CEO Michiel Muller. He emphasized, “This is an important milestone for us.” The company’s EBITDA (gross profit before deductions) turned positive, marking a significant step for the company.
📈 Efficiency Through Robotisation
The key to Picnic’s success lies in its advanced robotisation of distribution centers. So far, 30% of Picnic’s volume is handled by robots, doubling order processing efficiency. Muller aims for 100% robotisation within the next decade. He warns, however, that while gross profits have improved, this won’t necessarily lead to a threefold increase. The company continues to invest heavily, which means net profits are still not expected soon.
📊 Growth in E-commerce
Muller believes Picnic is well-positioned to capitalize on the growth of online grocery shopping. In the Netherlands and Germany, e-commerce in food is projected to grow from 8% to 15% by 2030. “The underlying trend of online grocery shopping is very strong; we have no merit in that. But if you already have something up and running now, you will soon have a very good position,” he noted. Picnic aims to leverage its early start to maintain a competitive edge.
🏃 Competitive Landscape
Despite the positive developments, Muller doesn’t foresee new competitors entering the market soon due to the high investment costs. He explains that in most countries, the competition is limited to a few players. In the Netherlands, for instance, Picnic competes with Albert Heijn and Jumbo, while in Germany, it’s Rewe, and in France, E.Leclerc. This limited competition allows Picnic to strengthen its market position further.
Will other supermarkets follow Picnic's path to robotisation?
