Running a supermarket at the center of New York City is not an easy task. The high cost rent of NYC real estate properties and limited selections of products due to insufficient amount of spaces have plagued retailers frequently. FreshDirect, an online supermarket based in NYC, capitalizes on the wonder of technology and overcomes the difficulties of high rent and limited selections of products.
Firstly, the company focuses its business only in NYC and its neighboring areas. In order to lower the cost of rent, this online supermarket rents a huge warehouse with the size of five football fields in the industrial zone at Queens. This huge warehouse enables the company to offer a selection of products five times more in comparison with that of its main competitors at NYC. In addition, the location at lower rent industrial region helps the company to save considerably in terms of rent expenses.
Secondly, the company manages to maintain the freshness of its products. As for freshness, consider that while the average grocer may have seven to nine days of seafood inventory, FreshDirect’s seafood stock turns each day. Stock is typically purchased direct from the docks the morning of delivery in order to fulfill orders placed the prior night. The firm buys what it sells and shoplifting can’t happen through a website, so loss from waste and theft plummets.
Thirdly, the extra expenses of FreshDirect are low in comparison to traditional grcery shops. The company does not have to install the money and energy sucking open-air refrigerators since all customers purchase online. Moreover, shoplifting does not happen at FreshDirect because thieves cannot steal away products from an online storefront.
Nowadays, the service of Freshdirect is so popular that many apartments at NYC are redesigned with common refrigerators in order to receive delivery from FreshDirect when customers are not home. In the past five years, the number of grocery stores has decreased nearly 30% since the presence of Freshdirect.