Channel Pulse: Grocery delivery on a roll and a positive outlook for recipe boxes
10th June 2020
Here we have our findings from week 11 (w/c 1June 2020) of Channel Pulse - our weekly measure of consumer and shopper behaviour across all UK food and drink channels.
Grocery delivery on a roll
Grocery delivery has had another strong week, with a record share of 20.3% achieved at breakfast (+2.4pp vs. the previous week); as well as share growth at dinner (+2.0pp) and snack (+0.6pp). It’s clear that lockdown restrictions have changed the way consumers shop – with the rise of the main shop and fewer, bigger baskets – which aligns well to the online grocery channel. Furthermore, the channel offers a convenient solution for those shielding or not wishing to venture out to physical stores.
We anticipate increased usage of grocery delivery will be a legacy behaviour as we come out of lockdown, evidenced by 20% of shoppers who anticipate using online grocery shopping more post-lockdown.
Shoppers increasingly seeking value
Good prices are consistently one of the top three needs when shopping for groceries, together with familiarity (‘it’s where I always go). This week we’ve seen good prices increase as a need at breakfast (+4pp), as well as at dinner (+2pp) and snack (+2pp). Retailers will need to promote a positive price perception in order to reassure customers that they offer good value for money, particularly as restrictions are lifted and shoppers might consider visiting stores that are slightly further from home.
Positive outlook for recipe boxes
This week recipe boxes have seen their highest positive swing so far (+28%) in terms of which channels consumers expect to be using more of in the following week. Gousto has announced that it is re-opening registration for new customers, having limited its service to existing customers only during lockdown due to exceptional demand.
The Channel Pulse Crystal Ball shows a narrowing of the pack in terms of which grocery channels consumers expect to use more of in the following week. Supermarkets have the slight edge, followed by convenience stores, discounters and online supermarkets – in that order.
On Demand Convenience Report
This report will explore the opportunity for suppliers and retailers to win in the On Demand Convenience channel, a relatively new route to market which includes delivery from convenience stores (both direct and via partnerships) and direct to consumer solutions