Booker is to roll out a rapid home delivery service to retailers in April. The wholesaler claims Scoot can help generate partnered stores £2,500 in additional weekly sales.
Last week, Better Retailing revealed the Scoot service had begun trials in Raven’s Budgens in Abridge, Essex, on 10 February. Another three stores are set to participate in the pilot.
The wider rollout in April will be exclusive to Budgens-, Family Shopper-, Londis- and Premier-branded stores.
Stores that join Scoot will be charged 1% commission on sales up to £5,000 each week. There will be an additional 0.7% authorisation fee on each transaction.
Those above £5,000 in sales per week will just pay the authorisation fee. Booker claimed the low rates allow shops to offer customers the same prices as in store.
The wholesaler promised exclusive promotions for shoppers on Scoot. Booker will fund some promotions, others will be funded by the retailer.
To join Scoot, retailers must have active social media accounts with more than 500 live followers. In addition, they must have “great store standards”, operate within the law, insure their own delivery vehicles, and invest in promotions and other deals.
Retailers will be expected to get orders to the customer’s doorstep within the hour.
In return, store owners will receive launch support packages worth more than £2,800. These will include point of sale, digital assets and thermal delivery bags.
Other support includes online marketing and branded wraps for delivery vehicles. Scoot manages orders and payments, leaving retailers to pick orders and deliver them themselves or via third-party delivery companies.
Positive feedback from initial Scoot trials
Booker’s retail managing director, Colm Johnson, said: “It’s a fantastic opportunity for our retailers to increase their basket spend and store sales, and connect with new and existing shoppers in their local communities. The feedback from our pilot test has been really positive.”
Goran Raven, director for Budgens Abridge, said: “It appeals to my existing customers, and will also help me recruit new customers. This is a fantastic opportunity and a big win for me.”
Concerns over Scoot
The Scoot launch could conflict with Booker’s existing agreements with home delivery platforms.
In August, the wholesaler signed a partnership with Snappy Shopper where it pledged to promote Snappy Shopper to its retailers. Less than a month later, Booker registered trademarks for this new rival service and began pitching Scoot to retailers, including those already working with Snappy Shopper.
Booker also has a long-standing relationship with Just Eat.
Speaking to Better Retailing, one industry expert suggested the low fees are unlikely to cover Booker’s costs without large numbers of “top-tier” stores recruited and “substantial” promotional investment from brands.
They also highlighted that Scoot’s terms and conditions give Tesco the right to access independent retailers’ shopper data. The terms state shopper data can be shared by Booker with Tesco for “corporate governance, provision of services, as well as achieving effective business management”.
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