AMAZON SET TO BECOME SIXTH BIGGEST SUPERMARKET?

RESEARCH: TWC

AMAZON SET TO BECOME SIXTH BIGGEST SUPERMARKET?

THE INAUGURAL TWC TRENDS REPORT SUGGESTS THAT AMAZON COULD BE IN LINE TO BECOME THESIXTH BIGGEST GROCER IN THE UK.

Intelligence and technology consultancy TWC launched a new series of planned regular reports last week with the headline-grabbing prediction that Amazon could become the sixth largest supermarket in the UK. All it would take for that to happen, said TWC Development Director Tom Fender, is for existing, committed Amazon customers to do just one big grocery shop with Amazon a month.

The inaugural TWC Trends Spring 2021 Report also suggests that supermarkets may start to lose their dominance in the future, especially with the younger generation and more affluent shoppers. It also highlights that the online delivery trend that is here to stay and will only get bigger with convenience stores needing to increase their participation in order to combat Amazon growth.

The report, which is available to buy here reveals the very latest perceptions, thoughts and behaviours of 1,200 consumers in convenience retail, hospitality, foodservice and wholesale. The company says it responds to a market gap for straightforward sentiment research and opinion mining on current and future trends, and that the research has been overlaid with incisive interpretation and calls to action.

Fender said the report digs into what is happening in the market – and most importantly why – and identifies emerging future trends.

“We believe that although Amazon is discussed a lot as a threat to our channel, the fact that 72% of the population has an account really emphasises that threat. And now, it is now a double threat with the launch of Amazon Fresh and a triple threat with its investment in Deliveroo.

“Their online platform may not impress Gen Z but their food-to-go and delivery solutions are sure to be winning hearts and minds in this consumer cohort. What we are most impressed with is the knowledge Amazon has on its customers which all comes from an obsession to gather, analyse and interpret data. This is something which many people in retail overlook. It is the fuel of their engine!”

What we are most impressed with is the knowledge Amazon has on its customers which all comes from an obsession to gather, analyse and interpret data. It is the fuel of their engine.

In the report TWC has segmented shifting trends into five themes that operators must focus on and gives clear indicators of what the future holds and explores how retailers, wholesalers and the supply chain can adapt to thrive. The five themes are:

1. ONLINE EXPLOSION

The Digitalisation and Delivery of Food and Drink and the impact on Convenience and Foodservice

2. EXPERIENTIAL HOSPITALITY & ‘RETAILTAINMENT’

Re-thinking the role of bricks and mortar as customers seek personalised, engaging experiences out of home.

3. DO GOOD FEEL GOOD

Working for a Better World. Social Impact and wellbeing influences consumer choices.

4. DATA & PERSONALISATION

Data is the new oil, one size does not fit all.

5. SAVE V SPLURGE

Balancing value as well as premiumisation to meet divergent customer needs.

“This report deliberately focusses on the long-term impacts on consumer behaviour” says Fender. “We believe that the immediate aftershocks of Covid-19 have been copiously covered and the industry has a firm grasp of the likely sales patterns for 2021.

“Meanwhile, there is a paucity of analysis of the seismic shifts that are taking place beneath the surface that will fundamentally and irrevocably change our sector. We predicted that this period of uncertainty would change the way consumers and shoppers will behave for years to come. The changes have important implications for our industry and our report highlights some of the opportunities that will help prepare you for this new normal.”

A further report will be published in October 2021 as part of TWC Trends twice yearly tracker study.