The Grocer – 20 July 2019

24 | The Grocer | 20 July 2019 Get the full story at thegrocer.co.uk

comment & opinion

W hat do you make of M &S’s plastic toy giveaway?

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concessions in WH Smith?

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● Could be a winner

● A strange pairing

● M&S should focus on M&S

55%

Kids will love it

1%

Should increase spend

44%

Plastic? Seriously?

polling station

mover here, as Co-op has been

partnering with Deliveroo since

last year. The Co-op’s focus is

narrower, focusing on booze,

snacks and confectionery, but

it’s clearly a route to market with

huge potential. Amazon is also

attempting to invest in Deliveroo,

though the C M A has requested a

pause to this integration.

What these manoeuvres indi-

cate to me is that, thanks to the

longer-term shopper trend of

higher frequency and smaller

baskets, consumers are now

comfortable with using a variety

of providers to satisfy their food

and beverage needs.

Uber Eats, Just Eat and

Deliveroo are now becoming

an important part of the super-

market/grocery delivery ecosys-

tem. Consumer demand for these

brands is massive and growing.

Food delivery was worth £8.1bn

Harry Walker is industry head of

grocery retail at Google

Delivery disruption

D

eveloping a profitable

online fulfilment busi-

ness is a huge chal-

lenge for grocers – the resources

required are immense. Only the

large retailers can aff ord their

own off erings, and even then,

they might not fi nd the effi cien-

cies to make it worthwhile.

As I’ve previously written, a

key to winning in this challeng-

ing environment could well be

partnerships. Most recently I was

fascinated by the expansion of

the Asda and Just Eat relation-

ship. Originally in place to deliver

pizzas from Asda stores, the part-

nership now allows customers

to actually order groceries from

the Just Eat app, with which they

may well be already familiar.

Off ering delivery of groceries

from 100 lines within 30 minutes

of order, the partnership creates

an online proposition that actu-

ally has a chance of meeting gro-

cery missions that are yet to be

satisfi ed online – that’s to say

convenience missions.

Asda, however, wasn’t the fi rst

talking shop

in 2018 – up 13. 4% yea r on yea r –

and contributed to 8% of the food-

service market [MCA Foodservice

Delivery Report 2018].

Consumer behaviour when

using food delivery apps is a

mixture of discovery and intent,

whereas online grocery tends

to be intent-driven. Grocers

and supermarkets that can tap

the discovery equation stand

to benefi t. For example, scroll-

ing through the Just Eat app and

seeing that Asda is an option

could attract new customers and

a higher frequency of ordering.

Partnering with food deliv-

ery operators clearly works – the

Co-op expanded its trial from

Manchester to London earlier

this year. These tie-ups dem-

onstrate once again your new

competitive set is now the best

consumer experience that your

consumer has ever enjoyed.

Just Eat, Deliveroo and Uber

Eats have created new expecta-

tions. It makes sense to leverage

their capabilities to give your

shoppers what they want in the

way they want it.

“Just Eat et al are

now an important

part of the grocery

ecosystem”

Harry Walker

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Volume: 241 Issue Number: 8415