Scoot and Peckish are filling a gap left by the retreat and withdrawal of Getir, Gopuff, Gorillaz

 

After years of standing still, the independent convenience delivery space is a hive of activity again. Last week, Booker announced it was rolling out a new rapid service and online ordering platform called Scoot, which will be exclusive to its symbol estate. And this week, The Co-op announced the launch of Peckish, a grocery delivery app aimed at independents.

The moves come at a time of declining sales across the UK independent convenience market. As the discounters and supermarkets open more neighbourhood stores, independents are less able to play their convenience trump card to charge a premium.

But a higher price becomes far more acceptable when groceries can be delivered in as little as 30 minutes, creating a new form of convenience. And wholesalers have woken up to the opportunity.

So, is this the next battleground for the sector? Online delivery proved its potential during the pandemic, with about 65% of convenience stores pivoting towards a delivery model, according to the Association of Convenience Stores, as 600,000 grocery deliveries were fulfilled every week – via independent specialist Snappy Shopper as well as mainstream aggregator apps Deliveroo, Uber Eats and Just Eat.

Peckish — screen ( _ )

Co-op has now relaunched the app as Peckish, with plans to sign up 1,000 stores in its first year

It was a peak time for the market, but as lockdowns were lifted demand eased, and today just a third of convenience retailers offer these services.

“The market as a whole is still niche,” says Leon Whittaker, owner of delivery player Flash. “But if you’re not delivering in three years, you’re not going to be about. The industry is where takeaways were four years ago. You wouldn’t open a restaurant now without delivery, and grocery will be exactly the same. It’s on the edge of exploding.”

Rapid grocery delivery is set to jump 29.6% to £2.89bn by 2029, according to Statista. And with Getir, Gorillas, Zapp and Gopuff retreating or falling by the wayside, it offers a big opportunity for incumbent convenience stores to work with wholesalers to drive sales.

 

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Nisa jumped on the bandwagon last year with the launch of pilot delivery app Nisa To You. Its owner, Co-op, claimed it offered retailers competitive commission rates in comparison with rivals such as Deliveroo, Uber Eats and Snappy Shopper.

Co-op has now relaunched the app as Peckish, with plans to sign up 1,000 stores in its first year. “I truly believe Co-op’s at the forefront of quick commerce,” says e-commerce director Chris Conway. “We do see a lot of our competitors ‘fast follow’ us in this space, which is quite unique for our organisation.”

Booker bares its teeth

He’s pointing to Booker and Scoot in that regard. But Scoot’s exclusivity to Booker’s symbol retailers is its USP, especially when allied with competitive commission rates.

Booker hopes it will help Booker attract more retailers. “Scoot is just one of the many benefits and services we can offer them to support and grow their business,” says Booker Retail MD Colm Johnson.

Another benefit for the wholesale giant is that Scoot offers it the capacity to push more stock via curated ranges and deals. “Scoot offers app-exclusive promotions that retailers can opt into, with reports available to help identify sales opportunities and the ability to load their own unique retail promotions and local products,” Johnson adds.

 

Nisa Local Bury Road_Nisa fascia

Peckish was piloted as Nisa To You

Going in-house for home delivery clearly has its perks. But as wholesalers venture into this space, what will be the impact on existing players?

Snappy Shopper remains “a market leader”, says Snappy Group CEO Mike Callachan. “For a long time, we were doing Snappy and wondering why no one else was doing it too. But big businesses are now seeing convenience home delivery is going to be an important part of the market. On the surface, Scoot does look very much like Snappy. They say imitation is the greatest form of flattery, and that’s how we’ve viewed it.”

Ultimately, he adds, retailers should choose Snappy over Scoot because “we’re a tech business, we’re not a retailer, a wholesaler or owned by a large corporate organisation. We’re not doing it for any reason other than to support independent retail. It’s a choice for the retailer – do they want to work with a specialist or take another product from their wholesaler?”

Flash, on the other hand, has a different USP, says Whittaker: “I don’t see us losing customers to Scoot, because everyone has their own territory with us. We’re still the only provider that only allows one store per area. It means if you’re making £20k a week in online sales, another retailer can’t jump on the platform and take your sales.”

Looking holistically, though, Whittaker feels Scoot and Peckish “inject healthy competition” into the market.

“It’s good for us,” he says. “We’re in a niche right now, but the more competition that comes, the more it won’t be niche any more, and more retailers will follow suit. Delivery’s not just a flash in the pan, and more competitors are going to be entering the market.”