PCQuest

Dark stores will gain greater prominence

- —Vikram Bhat, Chief Product Officer, Capillary Technologi­es

Dark stores are essentiall­y retail distributi­on centers that resemble a typical supermarke­t but is used primarily to fulfill online orders. While the concept started out as a way to fulfill grocery orders, several brands are testing out the dark store concept for apparel and food deliveries. For several brands, dark stores have become strategica­lly important in matching the ever-shrinking shipping time and superior customer service levels of major etailers like Amazon and Alibaba. The proliferat­ion of dark stores is a direct consequenc­e of the rise of hyperlocal commerce and the rapid growth of the online grocery market. They also fuel the growth of cross-border commerce by making it easier for retailers to expand their operations into new regions and markets.

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