Instant retail. The ‘now’ economy.
It will come as no surprise that a pandemic had some serious impacts on our day-to-day shopping habits. While one hour delivery wasn’t anything new in 2020, our greater reliance on it to bring our essentials could have changed the retail landscape forever. How has this new way of shopping affected us, retailers and who gets left behind?
LET’S LOOK AT THE STATS
Internet sales have seen a steady increase (punctuated with a huge spike, no prize for guessing when) over the years. In September 2019 online sales as a percentage of total retail was just 18%, by March 2021 it’s 32.8%. That’s almost a third of all retail spending that’s happening online. It’s no small chunk of the market.
So, long before toilet paper became a luxury item, we had already began a shift to shopping online. No more acutely was this change felt than in the younger generation. 56% of GenXers and 55% of Millennials prefer online to physical stores. Whether it’s convenience or the power to find the most competitive price; it’s been a lasting change to shopping behaviour.
GREAT EXPECTATIONS
It’s not just the youth where this trend will continue to dominate. Across the board customer’s choices are being influenced by delivery options. Think abandoning a basket because you can’t get what you’re looking for that day, (or in some cases, in the next couple of hours).
In the US, 1 in 2 consumers would be encouraged to shop with a retailer if they offered same day delivery. 74% percent said it would make them likely to repurchase with a retailer in the future. Not only that, 47% are willing to pay more for it too, and those who are more likely to pay? You guessed it – millennials. Over half are willing to part with their cash for speedy delivery options.
This is where it really helps to listen to your customers. Our client, Southeastern Grocers, heard the message loud and clear, evolving with the times to offer their customers a new way to shop with home delivery. We worked with them to launch a new retail service – E-Commerce. Building on their research, we created the strategy, concept and design to launch their online delivery service into the U.S. market.
PAY TO PLAY SURVIVE
Deliveroo, Uber Eats, goPuff (which just raised $1.15 billion in funding in the US), Getir UK, InstaCart, Shipt, Door Dash, Dumpling, Weezy, or ex-Sainsbury’s CEO Justin King’s bet – Snappy Shopper – the list goes on with new additions it feels like every other day.
The message is clear to retailers, if you’re not offering delivery options yourself, you need to dial up a third party who can do the heavy lifting for you. The best thing is that these platforms can bring your brand to a whole new audience who may not have access to it otherwise.
This potential increase in visibility is a goldmine even for those retailers with already robust delivery models of their own. These platforms can give thousands of new customers access to a retailer’s products, increase brand visibility in their area and allow them to get their piece of the market that’s usually cornered by big supermarkets.
IS CONVENIENCE KING?
The pandemic saw a huge boom in the world of grocery retail with record sales and new customers. Interestingly as we’re now coming out of a period of real scarcity, where convenience and availability are no longer the top concerns of consumers.
Now as we re-emerge into a sense of normality, the pendulum is swinging back towards value (more on that in a future piece from our Founder, Judy Andrews). This newfound shopping confidence has switched our priorities once more, and this plethora of delivery platforms which made sense in a pandemic might not all be as relevant in an increasingly competitive landscape. It’ll be interesting to see which of the many newfound delivery services goes the distance.
Tell us your view, what do you think the long-term effects of instant retail will be? Is there a chance for the many third party platforms to play nice and exist side by side? We’d love to know your thoughts. Share with us @weareticketyboo on Instagram and Twitter.