{"id":6273,"date":"2026-01-27T09:15:36","date_gmt":"2026-01-27T09:15:36","guid":{"rendered":"https:\/\/newtonimpact.com\/?post_type=content_library&p=6273"},"modified":"2026-01-27T13:36:45","modified_gmt":"2026-01-27T13:36:45","slug":"who-will-be-first-in-the-race-to-deliver-profitable-same-day-grocery","status":"publish","type":"content_library","link":"https:\/\/newtonimpact.com\/en-us\/content-library\/blog\/who-will-be-first-in-the-race-to-deliver-profitable-same-day-grocery\/","title":{"rendered":"Who will be first in the race to deliver\u00a0profitable\u00a0same-day grocery?\u00a0\u00a0"},"content":{"rendered":"\n
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\n Take Me Back<\/a>\n\n

Who will be first in the race to deliver\u00a0profitable\u00a0same-day grocery?\u00a0\u00a0<\/h1>\n

By Jasmin Swift<\/p>\n\n

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Director<\/p>\n <\/span>\n \n

Blog<\/p>\n <\/span>\n \n

7 min<\/p>\n <\/span>\n \n

27th January 2026<\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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As even the youngest millennials turn 30 this year, demand is rising for same day grocery delivery as this digital savvy, convenience hungry generation becomes the all-important family shopper. Which retailers will successfully cash in?<\/h2>\n <\/hgroup>\n \n
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Jasmin Swift<\/a>, Director at Newton<\/span>\u00a0<\/span>explains what could be next for the\u00a0<\/span>Tescos<\/span>, Sainsbury\u2019s, Morrisons and Waitrose of this world based on the current situation here and signals from our clients in the US.<\/span><\/span><\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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US leads the way<\/h2>\n <\/hgroup>\n \n
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The US is experiencing pacy year-on-year online sales growth \u2013 up 29% between November 2024 and 2025 (1)<\/span>. It\u2019s consistent as well, having risen for 15 consecutive months (2)<\/span>. The total value of growth has increased too (3)<\/span>, which is interesting as these rises\u00a0aren\u2019t\u00a0driven by new shoppers but the same set of consumers ordering\u00a0small amounts\u00a0more\u00a0frequently. This is thanks\u00a0largely to\u00a0the increasing number of ship-to-home, same and next day delivery options being offered by companies like Deliveroo and Task Rabbit.\u00a0<\/span>\u00a0<\/span><\/p>\n

Another major catalyst has been Amazon\u00a0and Walmart\u00a0showing\u00a0what\u2019s\u00a0possible, offering a much wider selection of products and delivering them reliably.<\/span><\/p>\n

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*(1\/2\/3) – Brick Meets Click Grocery Shopper Survey <\/span><\/span><\/a>\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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“With the vastness of the US, outsourcing delivery is the norm. But the key to success is real-time inventory systems accurately confirming product availability. Delivery is then achieved in minutes with their provider of choice.”<\/p>\n \n Tony Ward, Senior Partner of Retail & Consumer Goods in North America <\/span>\n Newton <\/cite>\n <\/blockquote>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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UK close behind<\/h2>\n <\/hgroup>\n \n
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Currently the highest spenders per shop in the UK are Gen X. But convenience-driven millennials, who have been using apps for small shops, are now moving into family shop mode. <\/span>They<\/span>\u00a0are the main household\u00a0<\/span>shoppers,<\/span>\u00a0and\u00a0<\/span>the<\/span>\u00a0expectation is to\u00a0<\/span>receive<\/span>\u00a0items on that same day.\u00a0<\/span>Similar to<\/span>\u00a0the\u00a0<\/span>US, that<\/span>\u00a0digital maturity is\u00a0<\/span>proving a<\/span>\u00a0gamechanger as through new online formats, there is\u00a0<\/span>huge<\/span>\u00a0<\/span>opportunity to serve the largest and most competitive shopper mission: the weekly shop.<\/span><\/span>\u00a0<\/span><\/p>\n

Retailers are fast responding to the expected demand and opportunity.\u00a0<\/span><\/span>Waitrose\u00a0<\/span><\/span>is servicing on-demand grocery<\/span><\/span>\u00a0through third-party<\/span><\/span>\u00a0partnerships with Deliveroo, Just Eat and Uber Eats. Asda is competing by providing online delivery slots which can be booked by midday for delivery that afternoon.\u00a0<\/span>Tesco,\u00a0<\/span>Sainsbury’s<\/span>\u00a0and Morrisons are partnering with courier and delivery services to support<\/span>\u00a0delivery within the\u00a0<\/span>hour<\/span>.\u00a0<\/span>Tesco’s Whoosh offering is growing so fast that the supermarket is expanding the offering to more shops and unlocking full basket shops, whilst most retailers are still limiting orders to 30 items.<\/span><\/span>\u00a0<\/span><\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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Is the same day possible?<\/h2>\n <\/hgroup>\n\n
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The commercial reality is that rising demand alone\u00a0<\/span>doesn\u2019t<\/span>\u00a0guarantee profitability. And\u00a0<\/span>let\u2019s<\/span>\u00a0not forget that alongside the clear\u00a0<\/span>set up\u00a0<\/span>expense, there is the associated challenge of\u00a0<\/span>cannibalising<\/span>\u00a0in-store spend. The central question then is how do retailers scale capacity fast enough \u2013 without locking in unprofitable growth?<\/span>\u00a0<\/span><\/span>Tony says\u00a0<\/span>it\u2019s<\/span>\u00a0<\/span>proving challenging<\/span> in the US: “Most retailers are using third-party service providers as internal changes have proven cost prohibitive. Even so, only a handful of retailers are supposedly breaking even. Several retailers are exiting trials because they can see they will never reach profitability.”<\/strong><\/span><\/p>\n <\/div>\n\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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“The race may be on, but most grocers haven’t cracked the code to same day: they’re just trying to not lose too much today.”<\/p>\n \n Tony Ward, Senior Partner of Retail & Consumer Goods North America <\/span>\n Newton <\/cite>\n <\/blockquote>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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Unlocking the challenge<\/h2>\n

From our work in the industry,\u00a0I believe the\u00a0answer\u00a0lies in re-applying the retail fundamentals in a digital context \u2013 balancing what is logistically possible with customer understanding on\u00a0price,\u00a0quality,\u00a0range\u00a0and\u00a0service, then testing in small areas, adapting and going again.\u00a0\u00a0<\/p>\n <\/hgroup>\n

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Price and quality<\/h3>\n

How will products appear on your app? Can packaging be designed for both digital visibility and picking, packing and delivery resilience? How can you balance innovation considerations around taste and excitement with issues like shelf-life? <\/p>\n <\/div>\n

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Range<\/h3>\n

Bearing in mind picking complexity and cost-to-serve, can you realistically offer the full in-store range online? What is your shoppers’ substitution tolerance? What are reactions to minimum basket thresholds and reduced promotions online? <\/p>\n <\/div>\n

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Service<\/h3>\n

This is where things get more complicated and costly. If retailers set up new logistics operations, are customers willing to cover those additional delivery costs? Two-third of millennials say they are willing to pay more for faster delivery, but are they really? And will families, couples and singles all increasingly pay for delivery across weekly shops and top-ups?<\/p>\n <\/div>\n<\/div>\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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So, is the\u00a0<\/span>only potentially\u00a0<\/span>profitable\u00a0<\/span>approach<\/span>\u00a0to partner with third-party apps? That has cost implications too but\u00a0<\/span>also a<\/span>\u00a0real risk\u00a0<\/span>of\u00a0<\/span>an inconsistent omnichannel brand experience when another company is interacting with your customers not only online but also right down to arriving at the customer\u2019s house in their branded vehicles and jackets.<\/span><\/span>\u00a0<\/span><\/p>\n

Who will win?<\/strong><\/p>\n

Tesco\u00a0<\/span>may be<\/span>\u00a0in front right now and, as Amazon\u00a0<\/span>and Walmart\u00a0<\/span>ha<\/span>ve<\/span>\u00a0made the model work in the US, there is a high chance that\u00a0<\/span>it can\u00a0<\/span>be<\/span>\u00a0replicate<\/span>d<\/span>\u00a0it\u00a0<\/span>in the UK. But, I believe, the next phase of online grocery\u00a0<\/span>won\u2019t<\/span>\u00a0be won by those who go\u00a0<\/span>fastest<\/span>\u00a0but those who scale smartest and most profitably, with clarity on the shopper missions they will win on.<\/span><\/span>\u00a0<\/span><\/p>\n

*(4) – Socially Powerful<\/a><\/p>\n

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Want to continue this conversation?<\/h2>\n <\/hgroup>\n \n\n Reach out to Jazz directly<\/span>\n \n \n <\/svg>\n
\n \n \n <\/svg>\n \n \n <\/svg>\n <\/div>\n<\/a>\n <\/div>\n\n \n \n <\/svg>\n\n \n \n <\/svg>\n\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n ","protected":false},"author":30,"featured_media":6321,"template":"","content_type":[20],"markets":[37],"class_list":["post-6273","content_library","type-content_library","status-publish","has-post-thumbnail","hentry","content_type-blog","markets-retail"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\nWho will be first in the race to deliver\u00a0profitable\u00a0same-day grocery?\u00a0\u00a0 - Newton<\/title>\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\t\n