Migros Turkey: Scaling Online Operations (A)

Case Solution

Antonio Moreno, Gamze Yucaoglu
Harvard Business School ()

The case will open in November 2019 when Ozgur Tort and Mustafa Bartin, CEO and director of large format and online retailer of Migros Ticaret A.S. (Migros), the oldest and one of the largest supermarket chain in Turkey, is considering the best fulfillment format and delivery model for the company’s growing online arm, Sanal Market, and its grocery service arm. less than 30 minutes, Hemen. Migros’ online business had grown more than 50% in the previous three years compared to the previous year; 100% growth was targeted by 2020. In the context of all these considerations, Bartin and Tort had to decide which levers to pull for the last mile and compliance to best serve the future of Migros. The case documents the founding and growth of Migros and Sanal Market and lays the foundation for food and grocery retailing in Turkey with competitive prospects. The case then provides a detailed description of how Migros has built online channels, Sanal Market and Hemen, recently introduced, and how Tort and Bartin have thought about compliance and delivery, as well as the omnichannel mindset. The case goes into detail about the three different compliance models that Migros will test in 2019: Subsidiary Pick Microfulfillment Center and Dark Store. While online shopping and consumer preferences were changing rapidly around the world, especially with regard to the type and frequency of online purchases and the speed of food delivery, Migros was looking for the optimal model for compliance. and last mile delivery.

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