Picnic is already profitable in two German cities
Picnic, the online-only supermarket from the Netherlands, launched its business in Germany one year ago. Now, the e-commerce company is already profitable in two German cities, Ecommerce News reports. In Mönchengladbach, the supermarket makes even more revenue than at the best location in the Netherlands.
Picnic is only four years old, but it looks like they are here to stay. The company was founded in the Netherlands in 2015 and just two years later, its four founders raised 100 million euros to expand further domestically and internationally.
With that funding money, Picnic launched its online-only supermarket in Germany in 2018. It started its pilot project in the Dusseldorf region and later on it expanded its reach in North Rhine-Westphalia. After one year, Picnic has about 26,000 customers in this region.
In Neuss, one-quarter of all households have already subscribed to the grocery service of Picnic, while in Mönchengladbach this threshold had already been reached after three months, RP Online writes. And at this last location, the Dutch company is generating more revenue than it does at the best location in the Netherlands.
While many consumers seem to find their way to Picnic, the ecommerce company still have lots to aim for as the online market share is just under 2%. Many customers thus need to be convinced to order their groceries online, Frederic Knaudt, CEO Germany at Picnic, says.
Picnic is still growing fast in Germany. Currently, the company is looking for a location for a second logistics center in North Rhine-Westphalia and the supermarket is also busy opening its business in other cites. “It takes us four to six months to be profitable in a new city. Something we already are in Neuss and Gladbach”, Knaudt shares.