Highlighting what the acquisition could mean for the sector, Geoff Lloyd, director of retail at NTT Data UK&I, said: “As funding stagnates for the Q-Commerce industry, food prices continue to inflate, and consumers struggle with the cost-of-living crisis, it is unsurprising to see Q-commerce businesses making moves in order to survive what will likely be a difficult 2023 for the sector.
“However, it is clear that the acquisition of Gorillas is a bid to stay afloat during turbulent times in the retail industry – in the last 3 months alone, traffic to the Getir website has plummeted by almost 50%. Despite this acquisition, the future doesn’t look too bright for Getir, as more consumers are becoming conscious of costs and are turning away from Q-commerce as a result.
“Recent research from NTT Data found that consumers are becoming more cost-conscious with their purchases and are now prioritising this over convenience. As a result, fewer consumers are now willing to accept the higher cost that comes with the Q-commerce model, whether it is through higher pricing of products or additional costs they need to pay for delivery to their doorstep.
“With this in mind, there is a huge opportunity for legacy retailers and grocers to gain back market share from the Q-commerce challengers and increase sales over the coming months, as the current economic climate is altering consumer buying behaviour. By using data to help improve deals and targeted offers as part of loyalty programmes, supermarkets can gain the upper hand and increase margins during this difficult retail period.”
NTT Data’s retail division recently surveyed a representative sample of 2000 grocery shoppers in the UK. Focusing on inner-city areas where Quick Commerce is available, it revealed:
- Just under a third of inner-city dwellers use rapid delivery apps / Q-Commerce
- However, more than half using the Quick Commerce have stated they are decreasing their use (59%) as cost over convenience becomes more important
- 90% of consumers state cost is one of the biggest decisions for where and when to purchase their groceries
- This is followed by quality with 77% confirming this as a key decision point
- Speed is left far behind with only 17% stating this is a deciding factor on where they buy groceries from.