Billa limits delivery: Future for Foodora & Click & Collect?
Billa limits delivery: Future for Foodora & Click & Collect?
Billa, an important player in the Austrian food retail trade, has decided to drastically restrict his delivery area from economic considerations. From December 1st, the house delivery, which was previously offered nationwide, will only be available for Vienna and some parts of Lower Austria and Burgenland. This decision marks the end of a nine-year phase in which Billa tried to expand its business model in the online area at the national level.
In an interview, David Renker, head of the online team at Billa, confirmed in an interview that the company has expanded the online business in recent years. "The demand in e-commerce has not broken in in the country, but it has not grown any further," he told the "Kurier". Renker sees Vienna the greatest growth potential and plans to double online sales in the next three years despite the restrictions.individual case and external effects
With the new delivery area, many external deliverers who work for Billa will be affected. The remaining delivery area extends from Mistelbach in the north to Wiener Neustadt in the south and from St. Pölten in the west to Bruck an der Leitha in the east. In the future, customers in Vienna, Graz, Linz, Traun and Innsbruck will also be able to receive smaller orders through the delivery service Foodora. This service will also be available in Salzburg from November 26th.
Billa also plans to optimize the Click & Collect option. By the end of the year, special pick-up switches and parking spaces for online customers are to be set up in all Billa Plus branches. This type of purchase enables customers to pre -order their goods online and then conveniently pick them up in the shop.
The transfer to online retail began for Billa in 2015. In the following years, camps in Vienna opened to support online orders. Online trading experienced a boom, especially during the Covid 19 pandemic. With the return to normalcy and the increased cost of living, however, this trend has been reversed.
in a highly competitive market in which Billa compete against competitors such as Hofer, Interspar and online retailers such as Alfies and Gurkerl, it can be seen that even established companies have to adapt their strategies. Interspar and Hofer already offer delivery in certain regions and compete for market share in Vienna and the surrounding area.
Despite the decline in online trading, Billa 2023 achieved an online turnover of 78 million euros, while BIPA, another subsidiary, implemented 25 million euros. This was compared to a total turnover of 10.45 billion euros, which increased by 9.6 percent in the same year. Although the online share of total sales is still low, Billa believes that it would be "fatal" to give up this type of sales. The latest developments are a clear indication that adjustments in the business model are necessary in order to remain competitive in the future. For detailed information, see the report on www.diepresse.com .
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