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The UK grocery sales are ruled by these “big four” – Sainsbury’s, Tesco, Asda, and Morrisons. According to Statista in May 2022, Tesco, Sainsbury’s, as well as Asda had around 27%, 15%, & 13% of market share in the UK grocery store. In contrast, Symbols & Independent and Ocado have the lowermost market share of 1.8% apiece.
Investors have funded more than £5B in the grocery delivery applications like Getir, Zapp, Fancy, Gorillas, Dija Dija, Jiffy, Beelivery, and Weezy within the UK. These quick grocery delivery applications provide shorter delivery time, as lower as ten minutes, together with deeper discounts to request customers. For instance, Weezy, Getir, and Gorillas claim a delivery time of 10 minutes and provide promo codes for an initial order. You can also have discounts if you invite family and friends.
For more insight about the UK Grocery space, we have analyzed 5 Grocery sellers and Q-Commerce companies for understanding trends and pricing in the competitive market. Let’s explore what data we have found and which retailer has won competitive pricing war.
Data Scraping period: January to June 2022
Retailers followed: Ocado & Tesco
Apps observed: Weezy, Getir, and Gorillas
Categories followed: Drinks, Beverages, Alcohol, Fresh, Frozen, Health, Wellness, Grocery, Smoke shop, Home Care, Packed Food, and Snacks.
Ocado and Tesco were price front-runners in maximum categories compared to Getir, Gorillas, and Weezy.
Between Ocado and Tesco, Ocado liked price leadership across different categories; for 4 out of 6 months, we tracked prices. Tesco engaged in the top position for merely balancing two months.
Tesco was a price leader in the Alcohol category having about 40% of the products priced at the lowermost compared to additional retailers. They were price leaders in the type of Smoke Shop.
Ocado had price control for the outstanding six categories, having a borderline gap between the retailers.
According to the Guardian, Grocery inflation in the UK has reached a 13-year high, and food pricing rise might hit 15% in the summer – running the highest level in over 20 years. Cereals, dairy, meats, fruit & vegetables are expected to get the worst exaggerated. Keeping that in mind, we have tracked the Price Index across five retailers to measure how prices have changed in the six months from Jan to June 2022.
Ocado and Getir had the Price Index, which was the most optimum, sitting in the 95% to 105% range.
Gorillas came with the lowest price index, between 88% and 90%.
Weezy has the maximum Price Index – they were dealing at a minimum 30 to 40% premium over the other retailers! Possibly it’s their fast delivery service which justified the high prices? Unlike other apps with lower delivery fees but long delivery times, Weezy provides a delivery service of 15 minutes, and customers are ready to pay for the convenience! Wheezy takes delivery fees of £2.95, a minimum of £1 above other platforms.
Ocado Supermarket is now playing catch up to compete with Q-Commerce and fast delivery service. Ocado has just launched new “Zoom” services promising delivery within 60 minutes, and Amazon is also delivering groceries on the “same day” (but after spending a minimum of £15)
Competitive pricing is essential for winning an eCommerce battle. Competitive pricing associates tracking competitors’ prices and strategically changing your prices without affecting margins. We have followed month-wise average Pricing changes from Jan to June 2022 for all five retailers to observe which retailer was doing pricing changes and at which frequency.
The key observation was – during the last six months, all the retailers were possibly tracking each other’s pricing and making small pricing changes accordingly – the requirement of an hour in the hyper-competitive environment.
Gorillas made essential price changes between Jan to February and Getir from May to June.
Though customer acquisition begins with creating awareness, giving discounts is a proven way of attracting customers quickly. Advertising discounts can endorse customer acquisition, long-term customer devotion, and better customer time value if approached with the right strategy. However, deep discounting could risk margins and generate more difficulties than benefits. We needed insight into discounting trends in the Grocery space; therefore, we have analyzed our data, and here are the results:
Getir provided by far the maximum discounts compared to Gorillas and Ocado. In most cases, they offered deals near 2 to 3% higher than a retailer with 2nd highest discounts!
Our data presented that Gorillas provided the lowest discounts. According to The Sun & other sources, new Q-Commerce players, including Gorillas, have been offering users discount codes, and that’s why this data has surprised us!
We analyzed the previous Price Index and found that Gorillas had an overall lower price index, with maximum products priced at 90% under other retailers. Maybe this lower price is the reason why they’re provided lesser discounts?
The market of UK grocery delivery saw a significant rise in the new retailers that are presently fighting for more discounts, competitive pricing, and fast delivery. Although Ocado and Tesco were price leaders in the findings, new names like Getir, Gorillas, and Weezy appeal to customers with quick delivery times and lower delivery costs.
We hope you have found this helpful analysis. You can contact us for any price analysis services. Reach us for all your web scraping service and mobile app scraping service requirements also.
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