A Canadian company's ambitious plans to shake up the grocery industry could also rattle retailers in other sectors. Grocery Gateway is attempting to build a profitable online grocery business - something companies around the world are struggling to accomplish. But if Grocery Gateway can deliver where others can't, then the company will roll out even bigger plans - to sell all sorts of consumer goods on line. We want to be your e-commerce provider. At the moment, Grocery Gateway is scrambling to get its grocery business working smoothly in the Toronto area.
Orders have to be picked efficiently, with special attention to produce.
During delivery, frozen food has to be kept cold - and separate from, say, bread. The company says about 95 per cent of orders are satisfactory. But the firm also says that isn't good enough to build an online grocery business. At the University of Toronto, Dunne warns investors in the United States have turned sour towards online grocers. He expects Grocery Gateway will face pressure soon.