Restricted budgets and decreased anxiety around coronavirus have led to a decline in convenience delivery usage from 2021 to 2022, a new study has found.
The Lumina Intelligence’s Convenience Delivery report has also found that price has become increasingly important to consumers, with a 7 per cent increase in its importance year-over-year.
However, the report highlights potential opportunities for convenience delivery providers. Seasonality is a key driver for convenience delivery, with colder weather expected to prompt an increase in usage. Spend per item saw a peak at Easter 2022, displaying additional opportunities around seasonality.
Overall, younger shoppers aged 18-24 are the key group to target, as they over-trade by 13 per cent compared to the total convenience market.
The report found that shoppers are most likely to use convenience delivery for ‘top up, meal occasions’, ‘treats’, ‘entertainment’, and ‘gifting’ missions.
Furthermore, shoppers who purchase in convenience via delivery spend the most on entertaining, with the largest over-trade for ‘top up’ and ‘treat’ missions. These missions are key to focus on to drive higher margins.
In terms of operator’s performance, Co-op is the leading retailer in the convenience delivery market, accounting for 39 per cent of occasions. The continued expansion of Co-op's delivery channel and partnerships with Deliveroo and Just Eat have led to its success throughout 2022.
Such collaborations between operators will be critical to boosting delivery volumes and opening new routes to the market, offering benefits such as access to a larger customer base and better service levels and enhanced shopper satisfaction, the report noted.
