A recent survey has revealed that 70% of consumers intend to use convenience store delivery services more in the future, following the impact of the coronavirus pandemic.
According to the brand-new HIM & MCA Insight UK On Demand Convenience Market Report 2020, it was also revealed that over half of respondents admit that they are unaware of the availability of home deliveries to them.
Currently, 54% of consumers have never heard of delivery from a convenience store through an app and 59% have never heard of delivery directly from a convenience store.
Product cost, delivery fees and wanting to walk to store are the three biggest barriers to consumers using store delivery services, however, nearly half of people said they would order online, despite never previously trying it.
Amongst current non-users, 46% say they will start using convenience store delivery services in the future, while only 6% plan on using it less.
Blonnie Walsh, head of insight at HIM & MCA Insight said: “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.
“In order to maximise footfall and awareness, promotion of the service needs to focus on the key benefits that distinguish it from other forms of grocery delivery i.e. fast delivery and smaller minimum spend.
“However, as well as driving awareness, it is critical that retailers get the balance of their offering right. 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.”
Consumers who use these services are expected to pay a 33% premium when using convenience delivery vs supermarket in-store.
Exclusive promotions and loyalty systems that unlock discounts to the delivery channel will help boost price perception, encouraging more shoppers to use the service.
The survey also revealed that 27% said that they believe convenience store deliveries would replace takeaway delivery at least sometimes.
Further information on HIM & MCA Insight’s UK On Demand Convenience Market Report 2020 can be found on their website.
