Provided by: Deloitte LLP
Date Added: Jan 2010
This case study looks at the example of a retail corporation and its business on the internet. With the internet, a number of retail companies have able to generate profitable e-business opportunities. This case study considers some pertinent questions related to retail business on the web. For instance, if the Internet portion of retail business is really making money, or does a company have a strategy that would differentiate it in the online market. Retailers on the internet have become profitable. In particular, online grocery shopping has picked up tremendously across North America. This case history delves on the acquisition of Grocery Gateway by Longo's in Canada. Longo's is a family-owned grocery chain with 14 grocery stores in the Toronto area. Family members of the company that owns it continue to visit the Ontario Food Terminal six days a week before sunrise for purchasing. But simultaneously, Longo's president Anthony Longo was aware that it would be difficult to fight competition from bigger chains that provided one-stop shopping. He therefore engaged Deloitte to come up with a corporate e-business strategy to provide a better shopping experience to consumers in Toronto. To start with, they wanted to build an online grocery business from scratch. But when GroceryGateway.com was put up for sale, Deloitte and Longo's took advantage and made a successful bid. Deloitte suggested that Longo's acquired this valuable ebusiness as 'Intellectual property'. This included the web site and the customer base. With these things already in hand, the company was able to enter the online grocery business race with a jumpstart.