NOW THAT’S A GOOD IDEA…
OUT THE BOX FOOD BOX DELIVERY
FOOD BOX DELIVERY NEW INSIGHT FROM CACI SUGGESTS THAT SIGNIFICANT GROWTH IN FOOD BOX DELIVERIES COULD OFFER GROWTH OPPORTUNITIES FOR LOCAL RETAILERS.
WHAT’S THE BIG IDEA? Food Box deliveries. Online delivery and local convenience channels have fared particularly well under lockdown but local retailers haven’t yet fully embraced the growing food box delivery opportunity.
SAYS WHO? Says Val Kirillovs of CACI, formerly of HIM. Kirillovs says the food box delivery concept is driven by three big trends in the grocery sector: a demand for convenient solutions, personalisation and being able to transact online.
IS THE CONCEPT NEW? No, it’s been a part of the grocery channel for a while but really came into its own in 2020. A recent consumer survey by CACI suggests that in 2020 some 16.5% of respondents ordered a food delivery box and 56% of those who use food boxes order at least fortnightly. A total of 38% of those ordering food delivery boxes said one of the main reasons for doing so was to avoid going to the supermarket.
THAT’S A LOT OF PEOPLE... Yes, and it was operators that were able to scale up the delivery infrastructure that won big in 2020, according to Kirillovs. They scooped up the initial share of the market – but competition is now intensifying as more retailers sniff the opportunity.
ARE THERE OPPORTUNITIES FOR LOCAL RETAILERS? There is clearly come scope for growth in the convenience channel. CACI says food box delivery services are now serving a variety of consumer needs, from routine grocery top-ups, to value boxes, to unique dining-in experiences. Local retailers could easily cater to these consumer needs.
WHO’S DOING IT NOW? 2021 has already seen Morrison’s move into the space with a £30 food box offer targeting families. Booths launched its ‘Let’s Cook’ boxes and Parsley Box securing over £5.2m to expand and target baby boomers.
26 I SLRMAG.CO.UK / ISSUE 42 / WEDNESDAY 10TH FEBRUARY 2021
