Asda unconvinced by same-day fulfilment

Asda is not seeing a huge demand for same-day delivery, with most customers preferring to shop at a slightly slower pace.

Speaking at the Manhattan Exchange event in London this week, Rob Wilks, senior systems manager at Asda, said the grocer is not seeing a huge demand for same-day delivery and click & collect, which allows customers to receive their weekly shop on the same day if they order by 11am.

While many retailers are following in the footsteps of Amazon by offering customers speedy fulfilment services, Wilks said the lack of uptake could be down to customers being in work and unable to place complicated, multi-product orders by the cut-off point. He also pointed to the increase in convenience stores which reduces the demand for same-day purchases as customers can simply “pop out” to grab items they need urgently.

Back in 2013, Asda was the first UK grocer to offer same-day delivery, which was followed by the roll-out of its click & collect offering. In early 2016, the retailer worked with Manhattan to develop its Toyou collect and return service, which allows customers to receive and return parcels from Asda’s clothing brand, George, as well as third parties.

Wilks said Asda’s busiest in-store shopping times revolve around the school run, with parents driving to a store in the early morning or after tea time.

Wilks also said non-grocery items, such as its George clothing range, are much more likely to be fulfilled by click & collect (60-70%), compared to grocery items (10-20%).

“It’s very different patterns,” he said, noting how click & collect is free and the retailer counts on the extra footfall it receives as customers enter the store to pick up their items.

While customers might not have an appetite to receive their products on the same day, Wilks said both its online grocery and clothing business are still growing. “Online is not going away and it isn’t going to go down, that’s for sure.”