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Grocery shopping moves from the shop floor to the sofa

Grocery shopping moves from the shop floor to the sofa

2020 was the year of the grocery delivery. From getting a hallowed prime time slot during lockdown to supporting local farms and producers through veg boxes, grocery deliveries are playing an increasingly important role in how we shop for food.

The move to food delivery is here to stay

It seems as if it was only a matter of time before the world of instant (or almost instant) gratification at our fingertips made inroads into the grocery sector. And thanks to the pandemic, it certainly has.

Whether it be via meal kits, fruit and vegetable boxes or takeaways, we have been consuming more food through delivery services than ever before. According to Cardlytics’ data, at the height of lockdown one in April 2020, spend on meal kits and grocery boxes soared 114% as people stayed indoors, while takeaway spend increased by 39%. But this wasn’t a one-off, it’s a trend we saw way before the pandemic. For the last few years delivery services have consistently outperformed the dining sector year with spend up 19% in 2018.

Beyond the boom in demand, coronavirus has also elevated customers’ expectations of delivery. The pressure for fast and free delivery has only accelerated, with previously satisfactory same-day, or even hour-long delivery slots making way for promises of fresh groceries in just 15 minutes from new app-based grocery brands.

This week in the UK, Asda launched a One Hour Express Delivery option for customers, while expanding its partnership with Uber Eats to serve more stores nationwide. This is the latest move in an industry-wide shift towards faster grocery deliveries. In the last few months alone, Waitrose quit their own rapid service to focus solely on their new partnership with Deliveroo. Rapid grocer Fancy revealed its own UK expansion plan after being acquired by US rapid grocery delivery service Gopuff, while market leader Just Eat has indicated an intention to move into grocery delivery in the UK, following its launch of a grocery service in Germany last week.

The platform market for grocery delivery services is booming – from the household names to new brands like Getir, Weezy and Beelivery, who are hoping to change the face of grocery shopping once and for all. Claims of fresh produce, fast and a more ‘environmentally’ friendly shopping model is tempting consumers to take note.

What’s clear is that businesses are listening to the needs of their customers who want fast, hassle-free services that come at a decent price and with minimal human contact.

Grocery brands looking to cash in on this new trend should take pause

The rise of the 24 hour fast and free grocery delivery is perpetuating the trend for lower-value, more frequent, smaller basket shops, rather than fostering greater spend, bigger baskets or more customer loyalty which grocers ultimately yearn for. And, with so many new players on the grocery delivery scene discounting is deep and rife, which makes it a competitive market to play in.

It’s clear that grocery is in the middle of a delivery services revolution, but making food arrive at our doors faster is not the only way to entice new customers in the battleground of grocery delivery.

Marketers need to double down on creating lasting loyalty amongst customers who put the most in their trolleys, most frequently, rather than those who jump from delivery service to delivery service shopping around for a cheaper deal. In the long term, the former will add far more value to a brand.

Finding new ways to offer customers value, without creating a hard-to-break cycle of discounting is key. Delivering potential and existing customers tailored rewards for delivery services on the grocery brands they use most frequently is part of the answer.

2020 was the year of the grocery delivery. From getting a hallowed prime time slot during lockdown to supporting local farms and producers through veg boxes, grocery deliveries are playing an increasingly important role in how we shop for food.

The move to food delivery is here to stay

It seems as if it was only a matter of time before the world of instant (or almost instant) gratification at our fingertips made inroads into the grocery sector. And thanks to the pandemic, it certainly has.

Whether it be via meal kits, fruit and vegetable boxes or takeaways, we have been consuming more food through delivery services than ever before. According to Cardlytics’ data, at the height of lockdown one in April 2020, spend on meal kits and grocery boxes soared 114% as people stayed indoors, while takeaway spend increased by 39%. But this wasn’t a one-off, it’s a trend we saw way before the pandemic. For the last few years delivery services have consistently outperformed the dining sector year with spend up 19% in 2018.

Beyond the boom in demand, coronavirus has also elevated customers’ expectations of delivery. The pressure for fast and free delivery has only accelerated, with previously satisfactory same-day, or even hour-long delivery slots making way for promises of fresh groceries in just 15 minutes from new app-based grocery brands.

In the last month alone, Waitrose has quit their own rapid service to focus solely on their new partnership with Deliveroo. Rapid grocer Fancy revealed its own UK expansion plan after being acquired by US rapid grocery delivery service Gopuff, while market leader Just Eat has indicated an intention to move into grocery delivery in the UK, following its launch of a grocery service in Germany last week.

The platform market for grocery delivery services is booming – from the household names to new brands like Getir, Weezy and Beelivery, who are hoping to change the face of grocery shopping once and for all. Claims of fresh produce, fast and a more ‘environmentally’ friendly shopping model is tempting consumers to take note.

What’s clear is that businesses are listening to the needs of their customers who want fast, hassle-free services that come at a decent price and with minimal human contact.

Grocery brands looking to cash in on this new trend should take pause

The rise of the 24 hour fast and free grocery delivery is perpetuating the trend for lower-value, more frequent, smaller basket shops, rather than fostering greater spend, bigger baskets or more customer loyalty which grocers ultimately yearn for. And, with so many new players on the grocery delivery scene discounting is deep and rife, which makes it a competitive market to play in.

It’s clear that grocery is in the middle of a delivery services revolution, but making food arrive at our doors faster is not the only way to entice new customers in the battleground of grocery delivery.

Marketers need to double down on creating lasting loyalty amongst customers who put the most in their trolleys, most frequently, rather than those who jump from delivery service to delivery service shopping around for a cheaper deal. In the long term, the former will add far more value to a brand.

Finding new ways to offer customers value, without creating a hard-to-break cycle of discounting is key. Delivering potential and existing customers tailored rewards for delivery services on the grocery brands they use most frequently is part of the answer.

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