Retail Relay (a)

Specializing in local, organic meat and produce, Retail Relay developed a new business model for online grocery shopping and delivery. Having succeeded in the small market of Charlottesville, Virginia, it was considering expanding to other, larger markets. This case focuses on customer lifetime value analysis and how this analysis, when paired with previous experience with consumer promotions, can guide thinking in developing the best strategies and tactics for entering new markets. Excerpt UVA-M-0784 Rev. Jun. 3, 2014 Retail Relay (a) The last-mile delivery cost kills most home-delivery businesses. I knew we could find a better way. —Zach Buckner, CEO of Retail Relay During the summer of 2007, Zach Buckner, the 31-year-old founder and CEO of Retail Relay, was again confronted with an ongoing frustration of daily suburban life. After his third trip to a local hardware store to get supplies for the same home improvement project, Buckner realized that a one-day project had now effectively become an all-weekend affair. He had spent more time shopping than installing new wiring in his 1930s-era house. Buckner had studied electrical and systems engineering and completed many consulting assignments for companies looking to improve their business operations. He drew on that knowledge and experience to come up with the concept of Retail Relay (Figure 1). And a new paradigm for online shopping was born. . . .