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* Britain's online grocery capacity way short of demand
* Demand has soared during health emergency
* Supermarkets want able shoppers to shop in stores
* Want online slots to be for elderly and vulnerable
By James Davey
LONDON, March 30 (Reuters) - British supermarkets are
frantically trying to build up their online operations during
the coronavirus emergency but no matter how hard they work they
will not have enough capacity to meet unprecedented levels of
demand.
That has prompted the industry to call on Britons able to
safely visit a supermarket to do so, leaving precious online
delivery slots for the elderly and vulnerable.
With Britain in lockdown, analysts estimate about 25% of
food purchasing has switched from cafes, restaurants and bars to
the grocery retail sector as people adapt to the new way of
living.
Prior to the health crisis about 8% of British grocery
demand was ordered online, with 92% bought in stores. But major
supermarkets are reporting demand has surged to about 75% of
people wanting an online delivery.
Last week online supermarket pioneer Ocado said it
had around 10 times more demand for its services than it did
before the outbreak began. It has stopped registrations from new
customers.
A source at another major supermarket group said its website
offers delivery slots for three weeks out.
"The new slots go on every day at midnight, they go like
Glastonbury tickets," the source said.
"Even if we were all very creative, and despite all the
pressures, doubled our capacity it still doesn’t touch the sides
of what people would want."
SLOTS
Dave Lewis, head of industry leader Tesco, last
week asked customers who are able to safely come to stores to do
so, instead of shopping online, so that it could start to free
up more slots for the vulnerable.
Walmart owned Asda, the No. 3 player, is similarly
requesting customers to shop in stores if possible so that
delivery slots can be kept for those most in need.
Sainsbury's, the No. 2, has given the elderly and
vulnerable priority over all slots. Its customer "Careline" has
been inundated, with the same number of people who use the
service in an average year using it in just two weeks.
The problem for the industry, which could have repercussions
for when the pandemic is over, is frustrating hundreds of
thousands of regular online customers who miss out on slots
during the crisis.
The government has provided Britain's big supermarket groups
with a list of 1.4 million highly vulnerable citizens and they
are dividing them up between them on a pro-rata basis according
to market share.
Inevitably this will mean they will have to "bin-off" some
previously loyal customers.
Some commentators argue the government needs to take a more
central role in how supermarkets provide food.
"Government has to get a grip and set new food cultural
rules for how consumers are to behave. Previous governments in
crises, in wars, have done this," said Tim Lang, professor of
food policy at City University London.
"This government is refusing to listen to the expert advice
which has been given to them. This is unacceptable and setting
up the retailers to fail."
(Reporting by James Davey; editing by Kate Holton and Angus
MacSwan)
