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UK Insights

‘Speed is the new loyalty’ in grocery shopping

Kirsty Cooke

Head of Digital Content, UK

Retail 24.10.2017 / 07:00

tesco-pay-plus

Do consumers care more about convenience than collecting points?

Could Tesco’s new payment app be the key to its future success? With news that Tesco had seen a 3.3% increase in group sales, Kantar Retail commented that the latest innovation from the supermarket – the Tesco Pay+ app – could be a factor in its success.   

Derya Yildiz, senior analyst, Kantar Retail, said: ‘Speed is the new loyalty in grocery and Tesco is making the right moves to secure a bigger share of shopper wallet. While Sainsbury’s tests a checkout-free payment app and Costcutter trials fingerprint payment, Tesco’s new Tesco Pay+ is a much simpler yet effective move. Tesco replaced the PayQwiq app with Tesco Pay+ which combines payment and loyalty in one app for quick shopping. Many grocers have apps, but few combine these two functions. Tesco can easily roll out the new app with a short testing phase, winning the basket here and now.’

Kantar Worldpanel data shows that Tesco currently has the largest share of the grocery market in Great Britain, at 27.9%. Along with the rest of the “big four”, the retailer has increased sales every month since April, though its market share was down 0.3 percentage points in the most recent period.

As cash is overtaken by other payment methods in the UK, consumers are increasingly willing (and able) to embrace new forms of payment. Research from Kantar TNS in the UK showed that the average consumer uses five different payment methods each month, with a third using six or more, but a low proportion are using digital methods such as smartphone apps. The newer technologies scored highly for ‘smart and connected’, but low for ‘dependable and flexible’ amongst UK consumers. Could this be close to changing?

Source : Kantar Retail, Kantar Worldpanel, Kantar TNS

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