How to maximise the rapid grocery delivery opportunity

How to maximise the rapid grocery delivery opportunity 1
The “Q-Comm” channel has emerged, Q being for quick

Rapid grocery delivery, or q-comm, has taken the UK by storm over the last couple of years following a shift in consumer behaviour, predominantly driven by COVID-19. 

And with consumers now returning to their busy lifestyles convenience has never been higher on shoppers’ agenda. Q-comm is naturally meeting this need and the data is backing this up. 

 

Spend on rapid grocery delivery has increased +123% in 2021 H2 vs -22% at traditional convenience stores and platforms that our Trading Team speak to on a regular basis are all reporting like for likes being up in 2022 as well.*

If you are considering using rapid grocery delivery channels, or currently using them, and would like some ideas on how to maximise your opportunities, we have created some thought-starters below:

Route to market

Your route to market is fundamental for you to consider, as products often need delivering to multiple sites instead of one central DC. These lower order quantities will have a significant impact on your cost to serve.

Working with a distributor offers a solution to this, however it is important to think about ways of working between yourself, distributor and retailer to ensure you are nurturing the listing.

The above will be applicable for your regular pureplay operators such as Gopuff, Gorillas and Getir who pick via their own dark stores. This will of course be different for companies such as Deliveroo or Beelivery as they are the delivery intermediary between shopper and retailer and do not store their own physical product.

Making life easy for the buyer

This fast moving and ever changing channel will mean your buyer is even more time constrained. Think about how you can make their life easier. For example, make sure you get the basics right when it comes to product set up, avoid code and packaging changes where possible and do not be too reliant on promotions to drive your volume.

Get your forecast right

Availability is absolutely critical due to the ease in which shoppers can switch platforms if they cannot find what they are looking for. Work on your forecast at least weekly with any available data and ensure you have visibility of any upcoming site openings.

Basket spend is another major focus as it helps the rapid delivery apps manage their costs. Think about which pack sizes are best for this channel and ensure your price and promotional strategy is not too reliant on promotion led sales.

Top tip: Getting involved in their corporate marketing calendar is a great way of engaging with them and gaining greater exposure on their platforms.

Being agile and flexible

Both opportunities and challenges can present themselves on short notice and it is important you are set up to respond accordingly.

Have a look at your internal decision making and sign-off process, will it support this fast paced environment? Does your budget and planning process allow for last minute opportunities?

Understanding the market

The key question that we are hearing many of you ask is; are they here to stay, or is it just a fad?

Due to this sector consistently changing, the answer is not so simple. However, we have identified five trends that we believe will continue to shake things up:

  1. A broader range of delivery times and price points

  2. A wider product selection to capture more spend

  3. Additional verticals to boost engagement and appeal to more shoppers

  4. An increased number of partnerships or own label offerings

  5. Continued consolidation of platforms

*Data taken from Internet Railing, their reference is Cardlytics.
We are here to help

This can be a complex channel to navigate, but if managed correctly the rewards can be high. We have spoken with a number of brands lately that are generating more sales in rapid delivery than they are with their more traditional accounts.

If you are unsure where to start, we can advise on the best logistical and commercial design to ensure you are set up for success when it comes to approaching, on-boarding and scaling your brand within the q-comm channel.

To learn more about how we can help with this or how ot tackle other commercial challenges, contact the YF Trading team at [email protected].

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