Strategy consultant Roland Berger has warned auditors could start to question traditional property-based retailers’ depreciation policies as soon as home shopping reaches critical mass.
It says traditional operators will have to view their target shoppers as their core assets and not their store locations.
There continues to be a split in the grocery market between whether in-store picking or the dedicated warehouse route is the way to go until critical mass is achieved. Sainsbury’s plans to open a warehouse in Park Royal, north London by early summer. Asda plans another two centres in the M25 area by the end of the year. Another 11 are planned for a national roll-out of its home shopping over 3-5 years. Somerfield is adding a new warehouse in Park Royal plus another two by the end of the year.
Financial Times 15/03/00 page 14
