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Online grocery sales are expected to increase more than a quarter this year as the coronavirus blockade prompts more families to shop from home.
Supermarkets have stepped up online operations to cater to millions more shoppers, as fears of catching Covid-19 have fueled demand for vulnerable shoppers, including the elderly, as well as families trying to avoid trips to stores. .
Only Tesco has more than doubled its number of delivery slots, including click and collect, to 1.2 million in six weeks, and Sainsbury’s is on track to increase its number of slots by more than 75% to 600,000 this week. Asda, Morrisons, Iceland and Waitrose have also significantly increased their deliveries.
On Thursday, Waitrose will open a new six-acre warehouse in Enfield, north London, as he prepares to part ways with Ocado, the online grocery specialist who currently sells food from the supermarket. The facility will allow Waitrose to double online grocery deliveries in the capital in September with an additional 13,000 weekly slots.
Thomas Brereton, a retail analyst at research firm GlobalData, suggested the switch to buying from home was unlikely to be reversed even if the government-imposed blockage to prevent the spread of the virus is eased later in the year.
“The online grocery market is now forecast to grow 25.5% in 2020, significantly above the 8.5% previously anticipated,” Brereton said. “In addition to the initial increase in volume demand (around 30% in April), a continued reluctance to venture into stores for the rest of the year will drive growth in the online market over a longer period than in-store.”
The latest prediction came after it emerged that online sales grew to represent 10.2% of the grocery market in the three months to April 19, up from 7% previously, according to market analysts Kantar. Their regular survey found that older shoppers, in particular, had gone online shopping, increasing their spending on online groceries by 94% year-over-year.
Despite rapid growth, supermarkets have admitted that they cannot keep up with even higher demand.
Time is needed to develop the infrastructure to handle home deliveries, including additional vans, staff to pick up food from shelves, or new “dark stores” or warehouses.
Ocado, the online grocery specialist, for example, has struggled to expand his service as it relies on robot-powered facilities that take months or years to build. Supermarkets with brick-and-mortar stores have been able to adapt more quickly by reserving time when supermarkets are closed to pick up online orders or by extending click-and-pick or home delivery services to more outlets.
The effort to meet demand has become more pressing as consumer rights groups and people with disabilities have warned that thousands of people are not getting the help they need during the pandemic.