Confectionery wholesaler Hancocks is to keep four of its depots permanently closed after the coronavirus pandemic led to a shift towards online ordering.
The firm closed all 19 of its branches at the end of March due to safety concerns, with it ramping up its online delivery operation to meet customer demand. Hancocks said earlier this month that its e-commerce business had been “performing strongly” with sales doubling since the lockdown began.
The group has started reopening its depots with six now operating and others starting up in the weeks ahead.
However, its depots in Coventry, Stoke, Croydon and Reading will not reopen after the coronavirus crisis has passed.
A statement from the firm said: “The current pandemic has accelerated online shopping trends, with the convenience of online shopping appealing to more and more customers, which Hancocks has responded to by lifting our capacity and maintaining good service.”
It added: “To be successful, Hancocks must respond to the trend of blending online convenience and a great retail experience. We are investing heavily in our remaining cash & carry sites, as well as providing an industry-leading online service, which has over 3,000 confectionery products at cash & carry prices.”
NAM Implications:
- A no-brainer pointer for all…
- Just think a combination of outlet profitability and online growth.
- Also keep in mind the inherently lower profitability of online vs. physical outlets…
- …everywhere.
