DEEP DIVE

DEEP DIVE HOME DELIVERY

HE COVID-19

Tpandemic accelerated many trends that were already happening, and the growth of online shopping and home delivery is one. With most of the population only leaving their homes for very specifi c reasons during lockdown, and often with more time and, in many cases, more disposable income on their hands as a result of not having to commute, demand for online purchases increased rapidly and, with it, for delivery to their door. And it looks like this is here to stay following the easing of lockdown.

After a year of disappointing growth in 2019, and a slow start to 2020, online sales grew signifi cantly, rising year-on-year by 23.8 per cent in April, 32.7 per cent in May and 41.3 per cent in the week during June when many non-essential stores reopened, according to analyst fi rm IMRG.

Such growth was inevitably infl uenced by the fact that all non-essential stores were shut during lockdown, but the ongoing threat of coronavirus and the prospect of people working from home on a more regular basis means home delivery is likely to be a more prominent part of our lives in future, alongside the potential for more local shopping.

For small fi rms, off ering home delivery can add greater choice for customers, and could prove essential should physical premises be required to shut down again. Research by FSB from April, during lockdown, found 9 per cent of all small fi rms had started making deliveries to customers as a result of the crisis, with the number rising to 11 per

71%

The amount of customers who want free home delivery, according to a report by TWC.

38%

want the minimum spend limit removed The amount of retail sales in June that were online, according to the Offi ce for National Statistics

Covid-19 has ushered in a new era where it is rapidly becoming the norm for items to be delivered to 24% The proportion of our front doors. Small businesses that fi rms will hope to benefi t launched a new delivery service during Door lockdown, according to Quotezone.co.uk

to door

The number of Starship robots that have been pounding the streets of Milton Keynes, delivering groceries and dinners to customers

27%

The growth in sales by Ocado in the fi rst half of 2020, on the back of online shopping and home delivery

The increase in online sales from February to June 2020, according to the O ffi ce for National Statistics – equivalent to a rise of £943.5 million a week 10,500 The number of roles created by home delivery fi rm Hermes in July, including 9,000 freelance couriers

82% 69.9% 750% The increase in UK Google searches for ‘cream tea delivery’ during May. Other prominent delivery searches included cupcakes, pick and mix, and cocktails, reports the BBC 13% The number of people who say they will continue to use home delivery in future, TWC fi nds

The amount of the UK grocery market that is now online, up from 7.4% pre-Covid-19, market research fi rm Kantar fi nds

The proportion of employees who say they would be happy to work from home permanently, according to Winckworth Sherwood

cent among fi rms that expected to remain open.

Many businesses have off ered home delivery for some time, and those used to trading via online marketplaces such as Amazon and Etsy have built their whole business model around this, using the services of third-party delivery fi rms to ship products. Books, clothes, gifts and food are all frequent arrivals on doorsteps.

However, the pandemic has also created demand for new items to be delivered, including those which may previously have not been considered by either customers or more traditional businesses. Deliveries of fl our or baking products soared during lockdown, as did meals from restaurants and even luxuries such as afternoon teas, cocktails, chocolates or speciality cheeses.

While this could pose problems for some businesses, particularly those with presences in areas that have seen reduced footfall, the rise of home working and home delivery off ers the potential for small fi rms to carve out a niche with a lower cost base. It may be that home delivery proves something of a saviour for many, in an otherwise tough landscape.