Canadian eTailer Grocery Gateway is looking to improve its long-term position by finding a bricks and mortar partner. Grocery pureplays are becoming increasingly disadvantaged in the online world, as supermarket giants expand their Internet operations.
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A partnership would offer significant benefits to the company, allowing it to increase its distribution network while at the same time cutting costs. The only pureplay companies likely to be viable as standalone operations in the long run are those with very specialized niche markets.
Source: Datamonitor, 2001: “Exploiting eFMCG Opportunities”
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