Efficient delivery support crucial for independent stores, says IGD analyst

Following the boost that the pandemic gave to local stores, the support and discipline of delivery and symbol group packages are now more important than ever for independent retailers, a leading analyst said on Tuesday (8).

As per Patrick Mitchell-Fox, senior business analyst at IGD, in the post-covid world, delivery is an important aspect in the retail market.

“Delivery is such an important capability in the route to market” Mitchell-Fox wrote in Kam City.

“It is about having an effective and efficient supply chain for products to reach independent retailers – but much more than that, it is also the key platform for raising the standards and driving improvement in retail execution. 

“Combined with the retail support functions and format development of a symbol offer, it’s what has been transforming the competitive capabilities of independent retailing in the UK.

The expert added that delivery is all the more critical for store owners who are managing more than one stores.

“Cash & carry also has a significant role to play in the route to market and remains an attractive option for some retailers but for any retailer managing one or more stores above 1,500 sq. ft., delivery is a critical service to maintaining an effective professional operation,” he said. 

“Coupled with electronic ordering systems, it is the critical link that brings suppliers closer to retailers offering data and visibility to help shape more effective sales strategies.

Mitchell-Fox mentioned increasing deployment of checkout-free technology and growth of rapid delivery services with proliferation of specialist operators such as Getir, Gorillas and Go Puff as the main trends trends “we’ll be keeping a close eye on in 2022”.

“There’s no doubt that the main opportunity for these specialists lies in the impulse mission traditionally catered for by convenience stores. It’s also clear that shopper demand for delivery remains high, with shoppers valuing the service increasingly alongside price and choice as a driver of their shopping decisions.

“We can certainly see the potential for these new entrants to take share from the traditional store-based retailers, but the opportunity in the market is perhaps at least as accessible to convenience retailers themselves as those delivery specialists. Indeed, we have already seen retailers driving significant incremental sales by using ready-made third party ordering platforms such as Snappy Shopper.”

The analyst added that while not all retailers are prepared to commit to operating such a delivery service, the increasing numbers that do are finding sales boosted by an average of over £2,000 a week, driven by transactions that are typically twice the size of in-store purchasing.