A new study by HIM & MCA Insight has found that seven in ten UK shoppers plan on using convenience store delivery services more often in the future, however half admit that they are unaware that such services exist.
According to the UK On Demand Convenience Market Report 2020, some 70% of those that are currently using convenience store delivery services will continue to avail of them, with just 6% planning on using said services less in the future.
Widen the Customer Base
Among those that currently don't use convenience store deliveries, 46% plan to use these services more in the future, opening an opportunity for retailers to widen their customer base.
The study also found that consumers expect to pay a 33% premium when using convenience delivery services compared to shopping in-store, noting that promotions and added-value campaigns aimed at users of delivery services could help improve price perceptions in this channel.
More than a quarter (27%) also say that convenience store deliveries replace takeaway deliveries, at least sometimes, which again opens opportunities for businesses to explore the development of higher price point items, such as premium pizzas.
A Great Opportunity
“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," commented Blonnie Walsh, Head of Insight at HIM & MCA Insight.
"However, despite high demand for these services, awareness remains low, with over half of consumers unaware that convenience store delivery exists.”
As well as driving awareness of convenience store delivery services, retailers need to 'get the balance right' when developing their offering, Walsh adds.
"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," she says.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
