With an online turnover of £350m in 2023, Co-op is the leading player in the quick commerce channel of the UK food & grocery market. Combining both in-house and partner platforms and delivery services the retailer’s online service can reach 83% of the UK population.

The largest part of the online business is driven by sales through the three major aggregator/delivery operators: Deliveroo, Uber Eats and Just Eat each of which includes over 1,000 Co-op stores on their platforms. Data from the Rodeo app, used by couriers, shows Co-op ranks the most used of all the grocers, ahead of any other national retailers, on all three of these services.

Growing reach and sales

The very rapid growth of the quick commerce operation seen over the last few years (+40% in 2023 alone) reflects the roll-out phase, with Co-op extending it to a growing number of stores across more platforms.

Co-op aims to continue this in 2024 with the extension of its online shop to 1,000 further stores by the end of the year. This will give shoppers in more locations access to an additional ordering and delivery option. From 2024 onwards, progress will increasingly be driven by Co-op’s investment in competitive strategies that enable it to gain share from other players.

Co-op aims to achieve a greater than 30% share of the UK’s quick commerce market and is innovating at pace both in-house and with its partners to reach this goal.

Quick commerce helping Co-op target larger basket sizes…

While quick commerce is a small basket channel, IGD research indicates an average transaction size of about £23, this research also shows that a significant minority (30%) of baskets are above £30 with spends of £40+ not uncommon.

Recognising the opportunity to attract these bigger baskets Co-op has been expanding the range of products available online through its stores. This enables shoppers to meet a widening range of needs through delivery. For example, from having had just 600 products on Deliveroo in 2020, Co-op has increased this to almost 6,000, while there are some 10,000 lines on Uber Eats.

…While also providing value

Shoppers using quick commerce services accept that delivery comes with an additional cost versus shopping in-store, so product prices will mostly be higher. However, that doesn’t mean that price and value don’t have a role to play in the channel.

To ensure a value message is preserved, Co-op offers a core range of products on platforms such as Deliveroo that are priced identically as in-store. This enables online shoppers to meet daily needs without being charged a premium.

In 2024 Co-op brought the benefit of its Member Pricing initiative to elements of its online offer. From March Co-op members have enjoyed all the benefits of membership pricing, which covers some 300 lines, when ordering through its in-house online shop. This follows the launch in February of Member Pricing for members using the Uber Eats app to order from c1,000 Co-op stores on the platform.

Chris Conway, eCommerce Director, Co-op, said: “We are committed to continued growth and innovation across our e-commerce offer, it is a fundamental part of Co-op’s strategic growth ambitions. Our approach to quick commerce has a focus on speed, quality and, reliable local deliveries direct from our stores which are located at the heart of communities. In addition, Co-op membership represents a different way of doing business, and our work has created further value for our member-owners - delivering greater benefits to those who own our business with member price savings across an extensive range and choice of everyday essentials ordered through our own online shop.”