Here's why under pressure WHSmith must up its online game
WHSmith must improve its online proposition by offering more than a rapid delivery tie up with Deliveroo, according to GlobalData.
Yesterday, Deliveroo announced a partnership with WHSmith, marking its first major push into the general merchandise space.
WHSmith is launching the service this week in Reading, Berkshire, and will roll it out across nine more stores over the next week, covering Richmond, south-west London, Muswell Hill, north London, Chiswick, west London, Brighton, East Sussex, Cambridge, Oxford, Leeds, West Yorkshire, St Albans, Hertfordshire, and Guildford in Surrey.
The trial will offer about 600 products to customers, including stationery, home working equipment, and technology accessories.
Sean Toal, Managing Director at WHSmith High Street, said: “We’re always exploring new ways to delight our customers both in-store and online by providing them with an exceptional shopping experience.”
“We’re really excited to be partnering with Deliveroo for this trial which will complement our existing offer and enable our customers to receive the products that they want and need from us as fast as possible from their local store direct to their door; whether that’s a greetings card, working from home essentials, a last-minute gift or a newly released book.”
But while this trial will ensure its products are more accessible, whether there is real demand for stationery and books through rapid delivery services remains to be seen, argues Kunaal Shah, Retail Analyst at GlobalData.
The retailer is struggling to retain appeal and entice shoppers back to its stores, with its latest results revealing that high street revenue remained unchanged from 2020, which itself was only 87% of 2019 levels, Khan notes.
“While a rapid delivery partnership will allow WHSmith to differentiate its online proposition from Waterstones, it should be focused on making its entire online store more convenient and easier to use. A good start would be launching a transactional mobile app, as well as a loyalty scheme that rewards consumers the more they shop with WHSmith,” Shad adds.
A survey by GlobalData reveals that 24.9% of rapid delivery users would like to see much greater category choice. However, these services are predominantly used for groceries.
Shah concludes: “While WHSmith is not the first non-food specialist to delve into the realms of rapid delivery, with Currys partnering with Uber, and Superdrug with Stuart, both in November 2021, WHSmith could capitalise on its wide product range, making products such as its food and drink available for rapid delivery to boost the appeal of the service.”
