Building a thriving business in 2025 with last-mile delivery

InternetRetailing

Ricardo Amorim, Acting UK General Manager and VP of Global Revenue at Stuart, the leading white-label delivery service in Europe

The Christmas period is always the busiest time of the year for grocers, restaurants and retailers. This past season, many stores aimed to generate a significant portion of their annual profits in the last quarter of the year – often called the ‘Golden Quarter.’

This year, though retailers struggled, grocers outperformed their numbers from last year, hitting a record for household spending in the UK. Britain’s biggest supermarket, Tesco was one of the most profitable this Christmas period, seeing 5% growth over the 12 weeks to 29 December and increasing its market share to 28.5%.

However, January generally brings a much quieter period, as consumers look to cut costs after holiday spending. Though this can often be a lean period for retailers and grocers, it also presents fresh opportunities for growth. As colder weather hits Britain, more people look to delivery, rather than venturing out in sub-zero temperatures. Consumers increasingly want a fast, efficient service that brings goods straight to their door.

Delivery is the key

To make it through this tough period, grocers and retailers must sharpen their focus on strategies to grow their customer base while retaining brand loyalty, and stay competitive when it comes to pricing – all without jeopardising their own bottom line. 

As customers now expect convenience, speed and reliability, delivery is not just an operational necessity but a strategic differentiator to stand out against their competitors, help stores expand their reach and tap into new revenue streams.

Stuart has worked with brands such as Tesco, Coop and Aesop to build last-mile solutions that work for them, and enabled them to benefit from the extended customer base unlocked by delivery.

Entering the delivery market

While the benefits are substantial, there are certainly barriers to entry to overcome. Building an in-house delivery fleet requires significant investment, not just financially but also in terms of time and infrastructure. From hiring and training couriers, to installing new technologies, the process can quickly become logistical and an operational hurdle.

By working with established delivery firms, such as Stuart, grocers and retailers can bypass these logistical challenges. Delivery partners provide access to couriers and ready to use platforms.

Having a platform ready to go which maximises courier journeys, stacking, and accounts for different packaging requirements, for example whether a product needs a cold chain or to be delivered quickly.

This approach becomes even more impactful when integrated with other systems that grocers may already be using. For example, online ordering solutions provider Slerp has facilitated hundreds of thousands of deliveries, covering the distance of travelling to the moon and back twice, since integrating with Stuart in 2017. This demonstrates how this approach can significantly enhance operational efficiency and profits for grocers and retailers alike.

Why white label?

Some of the largest players in the delivery market, the customer-facing apps, are known as aggregators. However, aggregators take over customer relationships from the store, distancing the grocer-client relationship. This lack of direct communication can weaken brand loyalty and trust, as it prevents grocers from addressing issues and personalising experiences.

Furthermore, this disconnection can have a serious consequence when something goes wrong. For instance, if a delivery is delayed or a hot meal is delivered cold, customers are far more likely to associate the bad experience with the grocer rather than the delivery service. Research shows that an overwhelming 80% of customers will blame the shop, not the delivery service, if there is a problem with their delivery, such as lateness or damaged goods.

Unlike aggregators, white-label delivery services allow businesses to maintain control over their customer relationships, owning direct customer interactions and overall experience. It also enables a company to run a delivery platform through their own website or app, maintaining their branding and identity.

This autonomy is crucial for businesses to ensure that their brand remains approachable, trusted and at the forefront of customer service. 

Staying ahead in 2025

As grocers and retailers find competition intensifies at the start of 2025, considering building a robust delivery offering to help reach more customers and potentially alleviate some of the strain on already challenging margins will be a smart commercial strategy. 

At Stuart, we pride ourselves on delivering exceptional service for both our grocery partners and their customers. We have experience working with some of the biggest names in the business such as Nespresso, Co-op, Sainsbury’s, Zapp, Carrefour and Aesop.

We offer a comprehensive suite of solutions tailored to meet each customer’s delivery needs, including our work with Tesco building their Whoosh offering. We also provide efficient on-demand delivery services and operational efficiency, ensuring prompt service to customers by providing 30 minute, one-hour and same-day delivery options, and enhancing the customer experience with real-time courier tracking.

As we enter a new year, we are committed to making 2025 a year of growth and resilience for UK retailers and grocers.

Get in touch with us to learn more about how a delivery offering could augment your business this year.

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