“Before the pandemic, many retailers hoped consumers’ unhurried embrace of online grocery would give them a few years to develop a business model that wasn’t so dilutive,” says a report by global management consulting firm, Bain & Company, “but now they need to find a much more rapid fix for the broken economics of the channel – and at the same time ramp up their e-commerce capacity to meet the surging demand.”
Not easy. But many are doing a good job at it. Maybe the most impressive result of these adjustments is the surge in “click and collect” options, and orders, which is clearly evident as the pandemic has shifted the way consumers want to shop. They want to pre-purchase goods and spend as little time as possible instore. Therefore, retailers with a smooth and quick click and collect offerings are well-positioned for success in the future.
And for some, it’s already the present.
Due to coronavirus lockdowns in mid-March, Kingfisher’s UK stores, including B&Q and Screwfix, as well as those in France, had closed. So, it quickly shifted to click and collect, and home delivery options. Online sales surged 202% in May and 225% in June for the company, beating industry averages significantly.
According to its CEO, Thierry Garnier, who joined the business late last year – digital is a key focus for all its brands. “Our clear intent is to become a more digital and service orientated company, using our strong store assets as a platform,” Garnier said. Yes, “Stores as a platform”. Is SaaP going to become a thing?
“We will continue to develop our own exclusive brands as a differentiator, cater for diverse local customer needs and each retail banner will have its own positioning and plan. We will ‘power’ these banners as a group. This is our new strategic direction, ‘Powered by Kingfisher.”
Also, Malmesbury Town Team spokesperson, Gordon MacPherson, clarifies that “click & collect will continue to grow – perhaps with opportunities for towns to create an online collective platform for businesses which operate in bricks and mortar only.”
“Increased online options and delivery services will be welcomed not just by the elderly or shielding but also the additional people now working from home, which may continue for them for some time,” she added.
Grocery Click and Collect
They are not alone, of course. “It has been a great way to increase options for customers to shop with minimal contact, and while we see some of that demand dipping from current levels, we do see it continuing to be above pre-COVID-19 levels longer-term,” says a Waitrose Supermarket spokeswoman.
And Sainsbury’s says it is “fulfilling more click & collect grocery orders in a single day than we were fulfilling in a full week prior to lockdown.”
While Simon Gregg, Asda’s VP for online grocery, said earlier this year, “We expected to see people picking up forgotten items from their weekly shop, or basics such as bread, milk, nappies, and last-minute dinner ingredients. In reality, it has been used for everything from a small weekly shop to those just wanting to pick up a few essentials.”
Across the pond in the US, retail giants, like Best Buy and Walmart, poured money into both home delivery and click-and-collect — otherwise known as curbside pickups at the start of the pandemic.
Necessity is the mother of invention, and in this case, also of convenience.
