The supermarket chain’s customers enjoyed the delivery service for nine years. For many people this is now over. From December 1, self-delivery is only possible in Vienna and parts of Lower Austria and Burgenland.
Billa said that with the two large warehouses in Vienna, “a third of all customers in Austria” could be reached. The Click & Collect activities and the collaboration with delivery service Foodora are being expanded.
Market leader sees too little growth potential
According to its own information, the Rewe subsidiary Billa is the market leader in online grocery retailing in Austria. “The demand for e-commerce in the country has not collapsed, but it has not grown further either. We simply do not see the same growth potential here as in Vienna,” Billa Online boss David Renker told the “Kurier” (Wednesday edition). Renker wants to double online turnover over the next three years, despite supply restrictions.
The end hits external delivery providers hard
From the beginning of December, Billa’s delivery area extends from Mistelbach in the north to Wiener Neustadt in the south and from St. Pölten in the west to Bruck an der Leitha in the east. The end of home delivery throughout Austria has consequences for delivery drivers employed by an external company.
Smaller Billa purchases are also delivered in Vienna, Graz, Linz, Traun and Innsbruck with the Foodora delivery service. From November 26, this is also possible in the city of Salzburg. You can order via the Foodora app. The supermarket chain sees potential in Click & Collect. By the end of the year, all Billa Plus branches throughout Austria will have their own counters and parking spaces for Click & Collect customers. With Click & Collect you order online and pick up your purchased items in the store.
The pandemic’s online boom is waning
Unlike its competitors, Billa relied heavily on online business. The online shop was expanded in 2015 and national delivery in Austria has since been offered. In 2017, the supermarket chain opened its first warehouse for online business in Vienna, and in 2020 a second online warehouse was added.
In the early years of the corona pandemic, including the lockdowns, online retail and home food delivery boomed. However, once the pandemic and inflation crisis subsided, the online boom in this country came to an end.
Very competitive market
In Vienna, in addition to Billa, Hofer and Interspar, online grocers Alfies, Gurkerl and Hausfreund are fighting for market share. Interspar delivers in the Vienna region as well as in the city of Salzburg and the surrounding area. The Hofer discounter offers grocery home delivery in Vienna with the Roksh delivery service.
Two pioneers in the domestic online grocery business – namely the Tyrolean supermarket chain MPreis and the Upper Austrian local supplier Unimarkt – have completely closed their online store this year for economic reasons.
The share of online in total turnover is still low
In online trading, Billa’s turnover in 2023 was EUR 78 million and Bipa’s was EUR 25 million. In the short term there is no potential to make a profit from this, but it would be ‘fatal’ not to offer this sales channel, Billa/Bipa CEO Marcel Haraszti explained this spring. By comparison, the gross total turnover of Billa, Billa Plus, Bipa, Adeg and Rewe Austria Touristik increased by 9.6 percent to 10.45 billion euros in 2023.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
