A recent study has found that home delivery is a significant revenue stream, equating to 7 per cent of total sales on average for retailers who offer the service.
For Adeil Hussain, One Stop franchisee from Motherwell in Scotland, this shoots up to 25 per cent of his turnover, with about 135 deliveries a day and growing.
The store went live with Snappy Shopper on February 4, 2020, at the time when talk of the pandemic was building, and the model instantly proved successful.
“One Stop has got fantastic offers and the products have worked so well. We simply add a £3 delivery charge, which covered the cost of using self-employed delivery drivers. Customers quickly found they could choose One Stop for their weekly shop, as we had the range and choice at a good price,” Hussain said.
Working with Snappy Shopper has attracted, not only customers that are further away from his shop who may never have shopped there due to distance, but also customers more local to the store have used the platform too.
Whilst Hussain might have been ahead of the curve by introducing deliveries as a convenience retailer, the pandemic acted as a catalyst for home deliveries to become a staple requirement.
“During the first lockdown customers couldn’t get slots from the larger supermarkets but with us they discovered they could get the same products for the same price and all delivered within an hour, often with a cheaper delivery cost,” he explained.
“We went from four deliveries in week one, to eight, then to 16 and by the time we went into lockdown in March we had over 50 deliveries a day,” he said. “It’s just boomed and we now have about 135 deliveries a day and growing!”
Hussain has since established himself with his customers and new customers as a primary location to use for home deliveries.
He expects consumers to continue using online apps even as they come out of lockdown in near future.
“Home delivery is a massive avenue that convenience retailers need to tap into. With One Stop we have had the best of both worlds. We’ve had the flexibility to do what is best for our customers and area but had the support of a national retailer behind us,” he said.
“We projected our online retail business would account for 25 per cent of turnover by 2023, but we’re two years ahead of this. In the three years we’ve been with One Stop our business has grown by 112 per cent and there are so many opportunities still to explore.”
John Miller, head of franchise at One Stop, added: “Adeil’s One Stop in Motherwell is a real success story for online shopping, this proves how well the One Stop range and offers stand out from other competitors.
“With the growth it shows how convenient shopping on the app is for customers that are up to 4-5 miles away from the store and how well people can tailor our franchise model to find solutions to meet the needs of their customers and store’s demographics.”