Grocery on demand: the new ecommerce battleground


As Deliveroo announces its intention to float, Retail Week looks at the growing area of grocery on-demand and which of the big supermarkets are likely to win share in this burgeoning part of the market.

One of the biggest stories in grocery since the start of the pandemic has been the growth of ecommerce, which has doubled in terms of market penetration since March 2020. 

Pre-pandemic, the online grocery market was stagnating at around 7% of overall sales and was considered something of a necessary evil for most big-box grocers due to the high costs and low profit margins associated with picking, packing and fulfilling orders. 

Fast-forward 12 months and one global pandemic and the market has exploded, with the latest Nielsen data putting grocery ecommerce at 16%. 

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