Peter Veash, CEO at The BIO Agency, asks just how does a continued revolution look for online supermarket shopping?
Eight years on from the fiscally challenging days of ’08 and despite the economy’s slow and steady move forward, shoppers’ lust for a bargain is as strong as ever. But alongside their discounted deals, the savvy shopper of 2016 demands quality produce and a credible shopping experience. Emerging online habits echo these shopping needs, and supermarkets are looking at other avenues to gain customers and cash in on the click to brick spend.
A clear example of this is Morrisons’ announcement that it will supply groceries to Amazon customers in the UK under a new deal with the US online giant. Following this announcement Morrisons’ shares rose 5.91% – demonstrating the power of strong brand partnership, and continued confidence in online shopping.
With the British grocery markets already feeling the pinch from the brutal price war and changing shopping habits, the time was right for Morrisons to diversify, and learn from what it didn’t do (quite so well) previously. Before this bold move, the company was way behind Tesco, Sainsbury’s and Asda. But this isn’t just a massive attempt at gaining back the market share, it could also revolutionise the way people buy their groceries.
The move is indeed a smart one. Amazon benefits from the existing, loyal customer base of Morrisons and vice versa. Would you be comfortable buying your fresh produce from Amazon, with no track record of food offering? Quite possibly not. But by teaming up with Morrisons, Amazon suddenly becomes a credible player in the grocery sector. With 13.5m UK adults now buying groceries online in a typical week, that’s 8% of UK grocery spend – no wonder they want to tap into the market. Morrisons’ own benefit is a no brainer, they get a point of difference from other supermarkets and an existing base of passionate online shoppers.
I believe more collaborations of this ilk will follow, with more companies working together to offer the full customer experience. In order to diversify, create their own path and be market leaders in this continued digital revolution, other supermarkets will be looking at Morrisons’ share rise and wondering ‘what’s next for us?’
So this could be a game changer and heavily impact the grocery sector. The next question is how can supermarkets make the consumer journey more enjoyable, fuss free and convenient in the future. Now there’s an exciting conversation we could have.