Sarah Coleman, Director of Communications at TWC presented at FWD Live!, the Federation of Wholesale Distributors conference, on 30 June 2022.
Our task was set the scene on rapid delivery ahead of a panel with representatives from AF Blakemore, Millennium Group and Snappy Shopper. Some of the key takeouts from the presentation were:
- There is a high level of consumer interest in rapid delivery solutions, with around half of consumers finding the concept appealing. Appeal – and usage – is highest in London
- Rapid delivery attracts a younger demographic than convenience stores; as well as appealing to those with children. Basket spends are higher: 60% of users reported spending more than £20, compared to a typical c-store basket of <£10
- However, cost is a major barrier for non-users. And this will only intensify with the cost-of-living crisis. Over half of GB consumers are having to reduce their spending to pay their bills
- Rapid delivery remains a city-based model, even in high density areas many operators are struggling to find a path to profitability and consequently we are seeing consolidation amongst operators as well as players exiting markets, scaling back expansion plans and reducing headcount