Delivery is not a defendant

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Soon we'll see the little factory stores on the best street corners and delivery apps.

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Take it for her, boy, take it for her

Tell her about our song

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Take It For Her — Criolo

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Stores that nobody sees, storage areas inside conventional stores occupying spaces that were sales areas.

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Does retail use the metric Same Store Sales as measured in square meters of sales area. It is used to compare performance between stores, how they convert their sales space into results.

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But at the moment several networks are converting sales areas into storage areas aimed at online sales, compromising future comparisons by Same Store Sales.

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This distortion in the metric is just a small sign of the ongoing changes.

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Um Recent post by the retail specialist at Gouvea Malls, Luiz Alberto Marinho, draws attention to the Micro Fulfillment Center (MCF) format, adopted by the Raia Drogasil network.

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The chain already has 700 stores adapted to this format and intends to expand.

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This is not an isolated case and may go back to the arrival of Amazon to physical retail, with the Amazon Store bookstore and the Whole Foods chain.

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In both cases, Amazon started using these. physical points also as a storage area for quick delivery of online purchases.

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In 2019, the GPA network began integrating its physical retail networks with online operations.

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It was clear that the difference between physical and online retail would end, expressions such as Physical retail and omnichannel began to be used to describe this movement.

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As a result of this trend, the Micro Fulfillment format is expected to go Grow 20 times by 2030, comprising up to 65% of the store base.

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Another aspect of this movement is the Dark Stores expansion, warehouses without a store totally focused on delivery.

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Investors are betting big on new networks, such as Daki, which operate exclusively in this format.

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At the other end the Current networks set up defensive strategies, as if a new retail was emerging.

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Finally, we return to the industry, which sees in this movement the possibility and reach the final consumer directly and start operating stores and advanced delivery points, such as meat and protein chains Swift from JBS, As Bernese sausage shops, until the strategy announced by BRF to open Mercato Sadia stores, presented as a new moment for the company.

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Not long ago, the experience of visiting a consumer goods industry ended at the factory's little store, where we found the whole mix of products at incredible prices.

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Now let's find the little factory stores on the best street corners and delivery apps.

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We follow the next and last article in this series: Think small.

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Access the first article in the series here, A ship that's about to leave.

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Article originally published on Update or Die!

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