Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...

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Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Coronavirus (COVID-19):
               UK Online Retailers Response

             15 ways UK online retailers are using content, operations,
                and supply chain, to help colleagues and shoppers

                                   19th March 20

© IGD 2020
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
I research best practice and global
                                                 Author
    Contents                                              Simon Mayhew
                                                                                                     developments in ecommerce to
                                                                                                   find opportunities for retailers and
                                                                                                            manufacturers.
                                                          Email: Simon.Mayhew@igd.com
                                                          Head of Online Retail Insight
                                                                                                    Prior to working for IGD, I was
                                                               www.linkedin.com/in/simon-mayhew      Sainsbury’s Head of Online
                                                                                                               Trading.
                                                               @simayhew_igd
                                                                                                   I’d love your feedback, email me
                                                                                                      at simon.mayhew@igd.com

                                                      1   Online content
    The Coronavirus (COVID-19) pandemic has
    resulted in unprecedented demand for
    online groceries.

                                                      2   Online operations
    In this report, we provide examples of the
    many ways UK retailers are responding, to
    support both staff, and shoppers.

                                                      3   Supply chain

                                                      4   Summary

© IGD 2020   Source: IGD Research                                                                                                     Page 2
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Online content

    Virtual queues                                                       Homepage information banners
    To manage shoppers’ expectations, control traffic, and try to        Milk &More has a homepage banner explaining that
    protect the stability of the website, Ocado put in place a virtual   “unprecedented demand” has led to shortages on some lines. It
    queue. Despite this, and the closure of its app, Ocado               ask shoppers to, “bear with us if we are a little later than usual”
    suspended its service on the 18th March. It will use that time to    and “shop responsibly”.
    better serve customers, with a focus on the vulnerable and
    elderly. The website will be live again on Saturday 21st March.

© IGD 2020   Source: IGD Research, Ocado.com, milkandmore.co.uk                                                                            Page 3
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Online content

    Frequently asked questions                                          Substitutions
    Iceland has a homepage information banner that clicks through       Coronavirus has impacted availability. Sainsbury’s is
    to a Coronavirus FAQ section.                                       reassuring shoppers with its substitution promise (if it offers a
                                                                        substitute costing more than the item ordered, and the shopper
    A large, red banner is dedicated to the key question, “Is your
                                                                        keeps it, a voucher is provided for the difference).
    website still accepting orders?”. To which the response is, “Yes,
    our website is accepting orders”.

© IGD 2020   Source: IGD Research, Iceland.co.uk, Sainsburys.co.uk                                                                          Page 4
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Online content

    Recipe ideas                                                     Emails
    Shoppers may have to make use of limited ingredients and         In an Ocado’s email, it explains “a few ways shoppers can
    online recipes could help. Amazon Fresh is featuring Fresh       make a big difference”. These include, only buying what you
    recipes on a rotating homepage banner. Online retailers can      need, avoiding last-minute edits to orders, and sharing
    enable shoppers to enter the ingredients they have and provide   deliveries with neighbours.
    relevant recipes.

© IGD 2020   Source: IGD Research, amazon.co.uk, Ocado.com email                                                                   Page 5
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Download slide to access hyperlinks

    Online
    operations

                                                                          Protecting drivers: self                   Protecting drivers: carrier
     Protecting shoppers
                                                                          isolation                                  bags/ returns

     In a letter to customers, on the 18th                                Tesco has a In self-isolation? banner      Morrisons has an ‘Important update
     March, Sainsbury’s CEO, Mike                                         on its slot booking page, informing        on Coronavirus’ banner on its
     Coupe, announced that customers                                      shoppers to update the delivery            homepage. Shoppers click through to
     over 70, and those with a disability,                                instructions box.                          an information page. To protect
     would have priority access to online                                                                            drivers, it’s no longer accepting carrier
     delivery slots from Monday 23rd                                      Sainsbury’s now has a homepage
                                                                                                                     bag returns, nor product rejections, or
     March.                                                               information banner, asking shoppers
                                                                                                                     unwanted substituted items.
                                                                          to update their delivery instructions if
                                                                          they are self isolating.

© IGD 2020     Source; IGD Research, Tesco.com, groceries.morrisons.com                                                                                          Page 6
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Download slide to access hyperlinks

    Online operations

    Increase click and collect capacity                                  Increase home delivery capacity
    From Monday 23rd March, Sainsbury’s will operate an                  Morrisons will create 3,500 new jobs, to expand its home
    expanded click and collect service, “significantly” increasing the   delivery service to another 100 stores. The retailer will recruit
    number of collection sites across the country.                       2,500 pickers and over 1,000 staff in its distribution centres.

© IGD 2020     Source: IGD Research,                                                                                                         Page 7
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Supply chain

     Restricted quantities                      Prioritising supply                    Order cut-off time

    Asda has a homepage banner                  To improve availability, Amazon has    To help supply chain teams forecast
    explaining that there’s a maximum of 3      announced that it’s prioritising       for online demand, Waitrose has
    units per customer on all products. When    household staples, medical supplies,   brought forward its order cut-off time
    the customer tries to add more than 3       and other high demand products like    form 11pm to 12 noon.
    items, the + icon is no longer clickable.   pet & baby, coming into fulfilment
                                                centres until 5th April.
    Sainsbury’s and Tesco have also
    installed a cap of 3 items on products.

© IGD 2020   Source: IGD Research,                                                                                              Page 8
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Summary                         1
                                        Empathy: For instance, Sainsbury’s prioritising elderly and disabled
                                        shoppers for online deliveries, or retailers no longer accepting
                                        returns, to protect drivers.

                                        Authority: Retailers are now restricting the number of items that can
                                    2   be purchased online and bringing forward order cut-off times. We’re
                                        also seeing communication asking shoppers to order responsibly.

                                        Reassurance: Online banners and emails are reassuring shoppers
                                    3   that plenty of food is available. If products are unavailable, retailers
                                        are advertising their substitution promise i.e. shoppers won’t be
                                        charged more.

                                        Confidence: Retailers are communicating that they are accepting
                                    4   orders and websites generally look business as usual. Some have
                                        now gone public stating that they are increasing online order
                                        capacity.

                                        Clarity: Retailers are using virtual queues, information banners,
                                        Q&As, letters from CEOs, and emails, to explain the current
                                    5   situation. Some are explaining the challenges they face, the rationale
                                        behind decisions, and the help they need from shoppers.

© IGD 2020   Source: IGD Research                                                                                  Page 9
Coronavirus (COVID-19): UK Online Retailers Response - 15 ways UK online retailers are using content, operations, and supply chain, to help ...
Want  to know
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                                                    our COVID-19: global retail responses report

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© IGD 2020        Source:
                      IGD IGD Research                                                                            Page 10
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