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W.W Grainger’s Attempt to Compete in Amazon Power Struggle
Click： Time：2021-06-06 15:46:17
One office supplies company who are looking to directly address the rise of Amazon and Amazon Business within the sector is W.W Grainger. In order to keep up with customer demand and attempt to join in with the power struggle against the e-commerce giant, Digital Commerce 360 reports that Grainger have cut their pricing structure and made several revamps to their online strategy.
Due to these changes, W.W Grainger reported a boost in overall sales and a reduction in gross margins. This is evidenced in their fourth quarter results released towards the end of last month, and estimations made by the company that they will retain between $38.10 (£29.30) and $38.70 (£29.76) in gross profit from each sale made in 2019.
The changes have come at the expense of Grainger restructuring some of it expenses and follow a $139 million (approx. £107 million) non-cash impairment charge attributed to their UK based Cromwell business.
It can be easy to suggest that the business has been facing pressure from the rapid growth of Amazon’s business-to-business offering, Amazon Business, which was first introduced in 2017. But looking at the overall picture, a renewed focus on its online strategy and presence has helped them remain in the fight taking place on the current office supplies battleground.
