Channel Pulse: A winning week for delivery
03rd June 2020
Here we have our findings from week 10 (w/c 25 May 2020) of Channel Pulse - our weekly measure of consumer and shopper behaviour across all UK food and drink channels.
A strong week for grocery delivery
Grocery delivery has had a good week, with share growth across all meal occasions compared to the previous week. We see this as a result of both demand from shoppers who are sticking to this new behaviour adopted through lockdown, as well as supply fuelled by significant capacity investment on the part of retailers. In our recently released Recovery Report [LINK to report page], we identified increased usage of online grocery services as a likely legacy behaviour post lockdown and into ‘adjusted normality’.
One recent example of a retailer adapting its online offer is M&S. The retailer has announced that it is expanding its range of delivery food boxes following strong demand since the launch of the service in March.
Meal delivery hits a milestone share
Out of home delivery reached a milestone >10% share of the all-important dinner occasion this week (10.3%). This represents an increase of 2.7pp vs. last week and is the highest share reported yet, against a previous high of 9.9% (w/c 11 May 2020). In the last few days there have been several foodservice reopening announcements, with Wagamama offering delivery and collection from around half of its estate; KFC now standing at 700 re-opened sites; and McDonalds will have all of its drive-thru restaurants open within the next few days.
Shoppers prioritising choice
In terms of shoppers’ needs when buying food for in home consumption, ‘choice’ has increased in importance in the latest week. This is most notable at snack occasions (+7pp) and lunch (+4pp), but also at breakfast (+3pp) and dinner (+2pp). Given we are now ten weeks into lockdown, it is no surprise that shoppers are getting bored with home meal preparation and seeking variety.