Online grocery doubled its market share to 12.5% last December, increasing by 6.7% in comparison to the year before. Experts believe the demand for online grocery will remain in the coming year.

According to Miya Knights, the co-author of Amazon and Omnichannel Retail, grocery retailers are going to get smarter with their tech. Now that retailers have a large customer base online, they can utilise data to improve their marketing tactics. Retailers plan on enhancing their smart and digital technologies to deliver interactive, personalised marketing offers and content in-store. These new enhancements will connect in-store with online marketing to create a better relationship and experience for shoppers.

Supermarkets have benefited during consequent lockdowns, with the closures of cafes, pubs and restaurants. The amount spent in grocery retailers increased, as the entertainment and restaurant experiences were put to a halt.

However, online shopping might not be a retailer’s first choice. Online grocery appears to be less profitable due to the natural competitiveness in ecommerce, especially when a retailer is not already well established. In order for retailers to grow online they need to hire extra staff, find a location and pay for packing facilities, and ensure that they follow COVID-19 safety measures to fulfil orders. In the last year, retailers have put a lot of time and effort into online grocery, but are now returning their focus to their physical stores.

In preparation for the return of normal life, ASDA announced plans to shut online warehouses and reduce head office roles. This would result in around 5,000 jobs being lost if it goes ahead. Sainsburys plans to cut 500 head office jobs, along with their 650 jobs currently at risk due to the closures of online grocery packing centres.

It is expected that the demand for supermarkets will fall dramatically as the lockdown roadmap continues. However, with the latest figures from Office for National Statistics, the UK unemployment rate was estimated at 5.0% (1.7 million people). These figures do not include the millions of people who are still on the government’s furlough scheme until September 2021. With many looking to save as much as possible, consumers will continue buying in-store and online after realising the large expenses of restaurants and pubs.

Supermarkets are aware of the benefits when combining online and in-store shopping. By choosing to Click and Collect, retailers can save in different ways. The British market is highly competitive but by using Click and Collect, supermarkets can promote convenience to attract customers. This collection service is preferable to retailers, as it saves time and money while still encouraging the shopper to go in-store.

Since the start of the pandemic, supermarkets have encouraged people to shop online to reduce the spread of Coronavirus. Online services adapted to try and meet the surging demand. Supermarkets such as Morrisons have now introduced delivery slots on their apps. However, there is a limit to the number of orders a retailer can fulfil. In March 2020, supermarkets struggled to meet delivery demands and were forced to limit the slots for delivery. 

Grocery retailers have also increased their delivery prices, generating an incentive for people to shop in-store.

Customers have had to change their shopping habits. According to a study by Alvarez & Marsal and Retail Economics, around 17.2 million consumers in the UK have considered permanently changing their habits after embracing new ways of shopping since the first lockdown in 2020.

While some UK supermarkets offered Click and Collect and delivery options before the pandemic hit, it has been clear for a while that shops need to adapt in order to keep up with the change in shopper behaviours. By adapting and offering Click and Collect, retailers will also accommodate younger consumers who already have developed strong habits to shopping online.

It is critical to have data-driven insights across every channel with integrated electronic point-of-sale (EPOS) systems to understand and improve a retailer’s inventory management, manage cross-channel payments, and learn about shifts in consumer preferences.

The ready meals market lost £75 million during the pandemic, with people working from home and having more time to cook from scratch. 62% of people are cooking more meals from scratch in comparison to 2019. This has changed the food-to-go culture; people now want more than just a sandwich and a coffee.

Food Boxes are very convenient as they are time saving and are a safe option for those who do not want to shop in-store during a pandemic. Recipe boxes are also handy for those looking to cook healthy meals in a short period of time, or to help those who need some cooking inspiration. The boxes come with recipes that are easy to follow, along with fresh, pre-portioned ingredients.

Morrisons offers different types of boxes, from essential boxes to ones for special occasions and even surprises.

The ingredients and recipes are delivered directly to a shopper’s door, without any hassle. Morrisons sources local ingredients where possible, so consumers can enjoy fresh food, reduce food waste try new exciting flavours.

Both services can be ordered weekly, fortnightly, or on a monthly subscription.

As adults are going back to the office and children are back in school, free time will be limited. Food Boxes from Morrisons and Eat Fresh are a great solution to eating healthy, fresh meals at a low cost.

Want to hear some exciting ways to reach Morrisons’ customers online? Request a Proposal or email us at hello@MorrisonsMedia.com