Editor’s comment: Delivering the goods

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The news that former Sainsbury’s boss Justin King is to invest a “substantial” sum of money in home delivery platform Snappy Shopper – and become a special advisor to the group – comes as a ringing endorsement of the independent convenience sector as it faces up to the challenges of the post-pandemic retail landscape.

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The sector is facing massive competition for on-demand groceries at the moment. On the one hand there are the big multiples such as Waitrose, which has just expanded its deal with Deliveroo to more than 100 stores, offering groceries in as little as 20 minutes.

Then there are new operators such as Getir and Weezy, who are looking to deliver from a network of their own ‘dark stores’ around the country and effectively put independent corner shops out of business.

King’s investment, however, shows he believes the existing network of independent retailers across the UK has what it takes to win this new turf war – largely because it already has the necessary infrastructure in place, while the newcomers are having to start from scratch.

Independents already have their own premises from which to fulfil the orders, staff to pick them, stock to fill the baskets, customer loyalty and the means to market their services through door-drop leaflets and in-store posters.

King believes that with Snappy Shopper’s help on the technology side of things, this existing army of independents can be mobilised successfully to take on the challengers and win.

The numbers also look pretty good for independent retailers. According to Snappy Shopper, the average basket spend for an online customer is £27, compared with £7.60 for someone walking into a store.

Its top 10 retailers have been generating more than £17,000 a week in delivered turnover, marketing director Philippe Rondepierre tells Independent Retail News (see Retail Technology feature, page 64).

Delivery is a game-changer for convenience, he argues, because it is the one initiative that will add thousands of pounds to a store’s weekly turnover and “will enable retailers to tap into a customer base beyond the physical catchment area of their stores”.

Of course, home delivery has been given a huge boost by lockdown, but King’s endorsement shows this industry veteran at least believes it’s a trend that’s most definitely here to stay and has the potential to bring boom rather than bust to the independent corner shop.

David Shrimpton | Editor