06 May 2020
Posted in Consumer
Ocado should expect further shift towards bulk and value-positioned products going forward
Following today’s news (May 06 2020) that Ocado reported a 40.4% rise in revenue since April 2019;
Ryan Whittaker, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view on what this means for the UK’s grocery market:
“By placing itself as the quintessential online-only UK grocery retailer, Ocado was well-positioned for the shift in consumer behavior due to the COVID-19 pandemic. In fact, GlobalData’s survey found that 25% of UK consumers admitted to spending more time shopping for groceries online. As a result of COVID-19, the UK online food & grocery retail market is now forecast to grow 25.5% in 2020 – significantly ahead of the 8.5% previously anticipated, according to GlobalData.
“Ocado, like all of the supermarkets, was initially overwhelmed and had to institute sales limits on products to prevent panic purchases. While panic buying has now subsided, grocery e-retail remains in high demand as lockdown continues.
“Furthermore, employment, and therefore disposable income, has become more precarious, which has created a shift in how consumers shop. Consumers are now moving towards a new normal – normal amounts of essentials, fewer premium products, and more bulk and value-for-money items. As a result of this shift, e-retailers such as Ocado should expect to see an increase in demand towards bulk and value-positioned products going forward.”
*GlobalData’s coronavirus (COVID-19) Tracker Consumer Survey – Week 6 (May 5) – UK – spending more/significantly more/or all day responses combined