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Striking a balance between online growth and profitability

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What’s the cost of online growth? In today’s InternetRetailing newsletter, we report on Ocado and Sainsbury’s as they report the strategy behind their double-digit online growth in their latest figures, and on French Connection, as it reports a fall in sales – but reveals how it is planning for future growth both on and offline.

We’re also writing about fast growth in the subscription market – is the regular box the ultimate in convenience shopping?

But while online sales are growing fast, and opening up new markets for innovative retailers, this growth could come at a price. A new report suggests that the cost of fulfilling the growing number of online orders is likely to dent retail profits in years to come, unless retailers find new and cost-effective ways to manage fulfilment.

Greg Zemor of Neteven is the author of today’s guest comment, on what the future holds for UK ecommerce, while we focus on marketplaces in today’s IRX 2016 preview.

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