E-Commerce has taken the world by storm and has disrupted many industries. However, one industry, in particular, is often overlooked that we believe has tremendous online potential - the grocery industry. We like the Canadian company Goodfood Market Corp. (OTC:GDDFF) (TSX:FOOD) due to its measurable competitive advantage over traditional brick and mortar stores. Goodfood Market Corp. is a provider of online subscription meal kits and private-label groceries and they currently have a 40-45% market share in the Canadian market. Keep reading to find out what potentially makes it a good long-term investment.
Goodfood Stock Analysis
Goodfood has a strong operational advantage over its larger brick and mortar competitors and it will most likely continue to see strong growth in the years to come thanks to its strong brand loyalty, operational excellence, and the ongoing shift in consumer trends. We estimate that it is worth anywhere from C$7.33-8.38 which translates to $5.50-6.29 in USD.
Currently, the company has over 300 private label items to choose from as well as 6 meal plans with 35 meals to choose from. The high quality of their offerings combined with the added convenience has allowed the company to generate 91% of their gross merchandise sales from recurring orders.
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