Talking Retail Grocery and product news for independent retailers
The HIM & MCA Insight UK On Demand Convenience Market Report 2020 found that currently 54% of consumers have never heard of delivery from a convenience store through an app and 59% have never heard of delivery directly from a convenience store. However, nearly half of consumers would use convenience store delivery, despite never trying it.
In addition, the report found 70% of consumers that are already using convenience store home delivery services plan on using it more often in the future, with just 6% planning on using it less. Among current non-users, 46% say they will start using convenience store delivery services in the future.
The three biggest barriers to consumers using on-demand convenience services are product cost, delivery fees, and wanting to walk to the store.
The report reveals consumers expect to pay a 33% premium when using convenience delivery compared to supermarkets. Adding exclusive promotions to the delivery channel will help boost price perception, the research shows. Retailers could also implement a loyalty system whereby consumers can unlock discounts the more they use the service.
Meanwhile, the report reveals that 27% of respondents said that convenience store deliveries would replace takeaway delivery at least sometimes. Therefore there is an opportunity for higher price point items, such as premium bake-at-home pizza, which can replicate the experience of foodservice delivery.
Blonnie Walsh, head of insight at HIM & MCA Insight, said: “On-demand convenience opens up a great opportunity for retailers to capitalise on the recent surge in demand for online grocery delivery services – a trend that is forecast to continue once lockdown ends. However, despite high demand for these services, awareness remains low, with over half of consumers unaware that convenience store delivery exists.”
“In order to maximise footfall and awareness, promotion of the service needs to focus on the key benefits that distinguish it from other forms of grocery delivery i.e. fast delivery and smaller minimum spend. However, as well as driving awareness, it is critical that retailers get the balance of their offering right. There are clear thresholds when it comes to product cost and delivery time/fee that, if not implemented correctly, will deter consumers from using the service.”
