The UK grocery market saw total sales of approximately £211.9 billion in 2021, and is expected to increase in value to a staggering £241 billion, by 2027. Competition is cut-throat and just two of the major players in the sector combined, accounted for 41.5% of the total value.
total sales in 2021
The effects of COVID-19 and Brexit, followed by a cost-of-living crisis meant grocery marketers truly went straight from frying pan to fire.
With many shoppers tightening belts in order to cope with rising costs and inflation, grocers need to find a way to stand out from their peers and guard against serial switching, where UK shoppers visit different supermarkets and grocers in order to get the most value from their spend.
Adapting further to changing behaviours, grocers need also to ensure customers can do their shopping wherever, whenever, and however they want.
One third of all UK household grocery budgets is spent online.
People are shopping with greater frequency, with more opting for a blend of instore and online buying.
They still, however, expect to enjoy the same benefits regardless of channel and the same seamless customer experience when moving from physical to digital.
To add a further layer of complexity, you have to consider high net-worth shoppers, particularly at premium grocers. Whilst value is still important, many want to receive information about quality and innovation, in contrast to information on deals and how to make their budget go further.
And that’s just the customers. What about the competition?
Competition in the UK grocery sector has never been fiercer, with challengers previously seen as value options making huge gains in market share, whilst consistently being proven to deliver on quality too.
A whole host of strategies are available to grocers like price matching, new loyalty launches, store openings, own brands, essential or value range offerings, all in a quest to avoid a simple race to the bottom.
So how can grocers cater to all needs, at all times, across all channels?
We have been providing the answer to that question to the UK and Ireland’s biggest grocers for 30 years, and every month we deliver hyperpersonalised communications to millions of UK consumers.
By putting data at the centre of decision-making and developing engaging communications that stand out on the doormat, inbox or lock-screen, we help grocers be more connected to their customers and deliver the right message, via the right channel and, with the pace of things changing every day, at the right time.
What puts Go Inspire ahead is that they have been a good long-term partner of Tesco, and they know how we work.
There is huge value in that. We don’t need to hold their hand like we do with a new supply. Instead, Go Inspire can hold our hand as a customer, which is why we choose them above other competitors.
Print Operations Manager, Tesco UK
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