Rapid convenience player Zapp is expanding its senior team and has established new dark stores, in the wake of global retreats by some of its major quick commerce rivals.
The rapid convenience brand currently has 20 live vacancies – including director roles across product; data science; demand forecasting; and its retail media effort Zapp Media Services. Several category manager and buyer positions are also set to be filled.
It’s also opened an undisclosed number of dark stores – all in London – since the beginning of the year.
“We’re seeing the benefits of our differentiated strategy through the continued growth we are experiencing as the leader in premium online convenience in London,” Steve O’Hear, Zapp’s SVP of strategy told The Grocer. “With the recent opening of new stores, the vacancies will support this expansion. As we further develop our platform, we are continually expanding our team, bringing on board the relevant experience to set Zapp up for long-term success.”
Zapp launched in late 2020 with a single dark store – or ‘Zappstore’ – in west London, and now operates several micro-fulfilment centres across the capital. It was one of a wave of rapid grocery brands launching in the UK at the time, and has survived swingeing consolidation of the market, which saw rivals Weezy, Jiffy, Gorillas and Fancy all acquired or shuttered. In April, one of the sector’s biggest players, Getir, confirmed its exit from the UK (as well as Germany, the Netherlands and the US) to “focus its financial resources on Turkey”, claiming the abandoned markets generated only 7% of its revenues.
Zapp remains a relative minnow compared with surviving rapid grocer Gopuff but has prospered, it says, by focusing on “premium customers” in London. This distinction was behind its present success, O’Hear said.
“Zapp has always been focused on establishing a strong foundation in London as the leading premium convenience provider delivering 24/7, and this strategy has proven to be the right one,” he said. “In the past 18 months, Zapp’s business in London has more than doubled, underscoring that there is a huge customer desire for our offering and that the customer demand is far from being a pandemic-driven phenomenon.”
O’Hear says the departure of players like Getir hasn’t affected Zapp’s fortunes either way.
“While it’s unfortunate to see other businesses collapse, we’ve always operated a different business model and targeted a different customer base, which is why we haven’t been impacted at all by other players exiting the market,” he said.
The model sees Zapp “steadfast in targeting customers in London who value and are willing to pay for a superior customer experience” and the offer of a “differentiated and premium product selection” O’Hear added.
In 2022, Zapp launched Zapp Boutique, a luxury-focused ‘store within a store’ on the main Zapp app, featuring brands like Antinori, LVMH, Apple, Dr Barbara Sturm, Bamford, SkinCeuticals and Cipriani. The wider Zapp catalogue – which goes beyond food to include beauty, gifting, electronics and other categories – has expanded to include around 4,000 SKUs.
Late last year, Zapp undertook a major rebrand to boost its appeal to affluent, central London customers. The rebrand included a new font, logo and colour scheme, and new tagline: ‘Elevate Your Everyday’. Alongside the rebrand, Zapp has launched a desktop version of its app, allowing customers to purchase products via justzapp.com – a rarity in the quick-commerce and courier delivery sector.
Earlier this year, Zapp said it had seen average order value on the app and website reach £37. That figure had now reached £40 – “achieved without the need for discounts or promotions” O’Hear said – helped in part by customers who spend hundreds or thousands on orders, which can include items like Château Pétrus Pomerol 2000 (£5,499.99), Apple AirPods Max (£549.99) and Cohiba Robusto Tubos Cigar (£99.99). The company claims a customer retention rate of close to 70% month on month.
The new Zappstores enable the brand to cover more of central London in a “doubling down” in the capital.
O’Hear indicated Zapp’s present expansion was far from over.
“We’re excited to bring Zapp to other markets in the future as we continue to capitalise on the enduring demand for rapid, premium convenience services,” he said. “Our priority remains doubling down on our success in London, where we are already operationally profitable, before taking the Zapp playbook and applying it to other suitable convenience mega-cities in the future.”
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