This quote from Kroger executive crossed my desk today – it rationally makes sense, but i had not seen it published before. I immediately went to the question – does this apply to AMZN and wholefoods? and secondarily, how does this apply to other retail segments, e.g., apparel?
Quote: “It takes 3 years to profitability with customers who switch to online “…when a customer first switches to online, it typically takes three or four years before that customers profitability is the same as when they shop in the store. But what we find is we get a significantly higher share of that customer’s total household spend. And there isn’t anything that we’ve seen that wouldn’t cause us to believe that the new e-commerce shopper doesn’t feel that way and a lot of those customers are telling us they intend to continue to shop more e-commerce than before.” – The Kroger (KR) CEO Rodney McMullen