Snappy Shopper’s ‘record breaking year’ sees continued losses and asset values plummet

Losses at grocery delivery app Snappy Shopper ballooned in its newly published accounts, which show an annual loss of more than £4.9m.

The figures for the year ending 31 March 2023, released just before Christmas, suggest heavy investment as the company battles to attract the sites needed to achieve UK-wide coverage. The company’s staff count grew by nearly 16% to 102 employees as it partnered with smaller convenience groups and integrated with PayPoint.

However, the accounts show it suffered a £6m impairment loss, writing down the value of its assets by more than half. The impairment loss period covers PayPoint backing out of its investment in Snappy Shopper, a move linked to frustrations at PayPoint over Snappy Shopper’s slow rate of progress in adding more stores to its network.

Despite the growing losses and asset value reduction, a spokesperson for the firm described 2023 as “another record-breaking year for Snappy Group”. While the accounts do not show the group’s revenue for the period, a spokesperson told Better Retailing it delivered “double-digit growth” while continuing to invest in core products and services.

“With new retailers joining our platform every week and new product offerings and partnerships imminent we expect to continue the positive forward momentum into 2024 and beyond,” they continued.

Imminent partnerships may stretch to expanding to a wider range of businesses, as in June 2023 the company said it will expand into new sectors following 50% year-on-year growth. At the time, vice-president of groups, media and business development Greg Deacon told Better Retailing that bringing on more business such as coffee shops, bakers, DIY shops, and butchers would help boost sales for stores on its platform.