INSIGHT OPINION

from Retail Express - 8 August 2023

MAKING MONEY

Max Schwerdtfeger, insight editor, Newtrade Media

“ACCORDING to a Newtrade Insight report published in 2022, ‘Home Delivery: What is Driving Growth?’, 30% of retailers said their revenues from home delivery had fallen since July 2021, while 31% of retailers said revenue from home delivery had increased and 43% reported that it had stayed the same.

“It perhaps shouldn’t be surprising that revenue has been, and continues to be, stubborn. Almost half (47.3%) of retailers said they hadn’t invested in their home delivery service at all since July 2021.

“The rest have invested in a mixture of areas, the most popular being in advertising their home delivery services, at 17.3%. This is also where they plan to invest in the future, with 34% saying advertising is going to be a priority.

“It is also the area in which they want help from suppliers, delivery partners and fascia groups, with 43.3% saying so, and this creates reasons to be optimistic for home delivery. Almost half (49.2%) of retailers who said they want help with marketing their services also plan to invest in advertising, with 20% of that number claiming to have already done so.

“Retailers who identify marketing as a challenge are also more optimistic for home delivery’s potential, with 56% saying they expect revenues from home delivery to increase in the next 12 months. This is higher than the number of retailers who believe they will increase – 44% – and it indicates they believe the potential for home delivery is there, they just lack the means to scale it up and promote it.”

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