Sainsbury’s is looking at how it can improve its range and efficiency of delivery services for Groceries Online customers.
Initiatives already include one-hour saver slots and changes to its delivery pass model, the company said in its preliminary results for the 52 weeks ended 5 March 2022 this week. Groceries Online now accounts for 17% of grocery sales, with an average of 690,000 orders a week. In the full year 2021/22 the company grew its Groceries Online market share to become the second-largest online grocery retailer, up from fourth before the pandemic.
The company said it has also improved profitability by enhancing picking rates with a more efficient routing system which will save the business around £50 million overall and improving van utilization.
Sainsbury’s relaunched its same day grocery service in 284 stores during the year and continues to grow its On Demand grocery offer. In the fourth quarter, it averaged 130,000 weekly orders from more than 580 stores in as little as 30 minutes through its Chop Chop service, as well as partnerships with Deliveroo and Uber Eats.
The company also updated on its integration of the Sainsbury’s, Argos and Habitat supply chain and logistics networks, which it hopes will save at least £250 million, as well as improve overall efficiency and service.
At Argos it opened five Local Fulfilment Centres (LFCs) last year, improving availability, speeding up delivery and enabling more collection options. Nine more LFCs will open this year.