Co-op is accelerating its e-commerce strategy via a new partnership with Amazon and the roll-out of robot deliveries to more areas around the UK.
The deal with the US online giant will see members of its Prime scheme offered the option to do a full Co-op grocery shop on the Amazon website, with same-day delivery and two-hour scheduled time slots. Initially launching in Glasgow – including surrounding areas such as Hamilton and Paisley – the initiative will be rolled out to other parts of the UK before the end of the year. Longer-term, it is expected to become a nationwide service.
Prime shoppers will be able to choose from thousands of grocery lines including Co-op own-label products, its Fairtrade selection, and national brands, all picked from a local Co-op store.
Amazon has been ramping up its grocery offer in the last few years and Co-op is the third supermarket in the UK to make their products available on its website, after Morrisons and Booths.
John Boumphrey, Amazon UK Country Manager, commented: “Our partnership with Co-op is another way for us to provide our Amazon Prime customers with more choice, value and convenience to shop for their everyday groceries.”
Jo Whitfield, Chief Executive Co-op Food, added: “With convenience at the core of our approach we are committed to finding new ways to expand access to our products and services, and we are delighted to be able to share our products on Amazon.co.uk. Co-op on Amazon will offer shoppers a shopping experience, with ease, speed and, choice of great value products, conveniently.”
Meanwhile, Co-op has also confirmed the extension of its partnership with Starship Technologies, the delivery robot company launched by the co-founders of Skype, which has been offering a zero-emission delivery service in Milton Keynes since 2018 and Northampton since 2020.
The convenience retailer will now increase the number of autonomous vehicles delivering Co-op groceries from 200 to 500 by the end of this year, bringing them to five new towns and cities, including Cambridgeshire, and extending the service into the North of England. Shoppers using the rapid delivery service will be able to choose from 3,000 grocery items.
Alastair Westgarth, CEO of Starship Technologies, commented: “More and more people are realising that it doesn’t make sense to drive to the store for ‘top up’ groceries when the hassle can be removed through autonomous, contactless and environmentally friendly delivery. Ultimately, we want to save time and money for our customers, and make their lives easier in a sustainable way.”
Chris Conway, Head of eCommerce at Co-op, said: “In addition to offering quality and value quickly, easily and conveniently, we need to do this sustainably, and by working collaboratively with Starship and other partners with shared values we can ensure we further reduce greenhouse gas emissions, something which is essential if we are to have a healthy and sustainable natural environment to pass on to future generations.”
The moves are part of Co-op’s plan to more than double its online sales from £70m to £200m by the end of the year. The society’s online offer has been rolled out at pace since the launch of its own online shop less than three years ago. Through its own vehicles or with partners, almost four-fifths (2,000) of its stores are expected to be in a catchment area for either home delivery or click & collect by the end of 2021.
NAM Implications:
- A way for the Co-op to achieve leading-edge…
- …without the investment.
- With little to prevent other retailers to follow this route with Amazon.
- Vital for suppliers to anticipate these inevitabilities…
- …and thus act while others ‘wait & see.
