Delivery Matters COVID-19 surveyAnalysing online shopping behaviour May/June 2020

How has COVID-19 affected online shopping habits? Read on for a month by month analysis of shifting attitudes and behaviours during the current pandemic.

What matters most to UK online shoppers? As lockdown eases, get a clear overview of the changing retail landscape as we compare responses from reports tracking May and June 2020. The next independent report for July will also be available very soon.

Who took part?

Independently conducted by Trinity McQueen, this Delivery Matters COVID-19 study includes two surveys with 500 UK shoppers who purchased or returned online. The first study took part in May 2020 and the second in June 2020.

In June we saw a significant decrease in the number of people

concerned about their family’s health. As we adjusted to

the ‘new normal’ more people were enjoying time with family.

Reactions to lockdown:

In these uncertain financial times, people’s spending habits have changed.

June was slightly more optimistic than May, with those seeing a decrease

in their income reducing to 33% from 37% in May. People were more

cautious in June versus May, over half of people were saving more,

and fewer people felt secure in their jobs (40% in June vs 43% in May).

Changing consumer concerns

Financial matters

“Concerned about my family’s health”

MAY JUNE

73% 63%

“Enjoying spending time with my family”

MAY JUNE

59% 63%

“Had to cancel upcoming holidays or events”

MAY JUNE

70% 71%

Are you keeping spending on ‘non-essentials’ to a minimum?

MAY JUNE

67% 64%

Do you feel secure in your job?

MAY JUNE

43% 40%

Are you saving more?

MAY JUNE

53% 57%In June, men appear

to have saved more than usual compared with

women (62% vs 51%)

COVID-19 Delivery Matters May/June 2020

SAID YES

SAID YES

SAID YES

Staying in lockdown, many of us were browsing and buying online with half saying they shopped more frequently in May (compared to pre-national lockdown), raising to 55% in June. 22% of younger shoppers (18-34) are expecting their income to increase as the pandemic progresses as opposed to just 17% of older shoppers (34+).

Online shopping habits

How much?

How has shopping changed pre and post-national lockdown

How often?

In June, women were more likely to have shopped

online than men (4.8 times vs 4.0 for men).

How shopping preferences changed from May to June as the lockdown began to liftOur priorities have certainly shifted, as we started emerging from lockdown.Purchasing of clothes and make-up increased and food & drink has seen a substantial rise from 2019 (with 44% buying in June 2020 vs 28% buying food & drink over a 3 month period in 2019).**

COVID-19 Delivery Matters

*Delivery Matters UK, 2019. Independently conducted by Trinity McQueen. **3 month period tracked between January to end March, 2019.

May/June 2020

Toiletries & Make-up

28% 33%21% in 2019**

Garden products

27% 27%11% in 2019**

DIY equipment

28% 25%10% in 2019**

Food & drink

42% 44%28% in 2019**

MAY JUNE

£226

Average online spending

for 3 months

J A N , F E B , M A R C H

2019

Online shopping

has increased from

£226 across

3 months in 2019* to

£226 for just the month

of June in 2020

£213

Average online spending for the month

of May

M AY

2020

£226

Average online spending for the month

of June

J U N E

2020

Getting there…

As online shoppers emerged post-national lockdown in June, people were more likely to be out and about. Therefore, making delivery updates (87% June vs 83% May), having items delivered within a specific window (68% June vs 66% May) and knowing which delivery company will be responsible for the delivery (72% June vs 69% May) were all even more important than in May.

What delivery factors are important to you at the moment?

Being kept informed 83% 87%

Free delivery 84% 86%

Coronavirus-specific options 75% 74%

Specified delivery window 66% 68%

Going back…

With more people claiming to be shopping online, and lockdown making them less inclined to go out, it is unsurprising that shoppers have found it more difficult to return an item than pre-Covid (39%). Convenient returns such as a home collection or dropping the item into a local Post Office® are the preferred options in May and June.

Top preferences for returns

Delivery expectations View of returns

MAY JUNE

Your parcel will arrivebetween 1pm-3pm

MAY JUNE

40% 38%

Collection from home

Dropping off at a Post Office®

26% 27%

Dropping into a Parcel Postbox

3% 3%

Dropping off at a Royal Mail Customer Service Point

4% 5%

COVID-19 Delivery Matters May/June 2020

Royal Mail rated first across almost every category, with a rise in trusted delivery for June. There was a sense of ‘thumbs up’ for Royal Mail posties too, with 72% of online shoppers identifying their staff as friendly and trustworthy.

Carrier impressionsRoyal Mail rated first in the following categories:

Which brand delivers?

COVID-19 Delivery Matters

“I feel like there is more security with this option.

Other companies sometimes turn up in unbranded vans and leave items on the doorstep.”*

A final word on Royal Mail…

MAY MAYJUNE JUNE

74% 55%76% 56%

A safe pair of hands A safe pair of hands

61% 41%61% 48%

Can trust to deliver items

Having a positive impact in the current pandemic

57%59%

Having a positive impact in the current pandemic

47%44%

Can meet my needs better than other brands

55% 51%

Can meet my needs better than other brands

40% 38%

*Reason for preference in using Royal Mail taken from a customer quote in the COVID-19 Report June 2020.

Closest competitor

37% of online shoppers would prefer Royal Mail to deliver

their items – 21% more than their closest competitor

Can trust to deliver items

June 2020 in summary

COVID-19 Delivery Matters May/June 2020

JUNE2 0 2 0

Bills due

Look out for our next edition, featuring our July results, coming soon!

Five key take-outs

1. In these uncertain times, most claim to be spending less on non-essential items, but disposable income has risen slightly from May to June and 17% of people expect a further increase in July, meaning now could be the optimum time to promote deals on non-essential items.

2. Consumers shopped more in June (55% vs 50% in May) and spending increased from £213 for the month of May compared to £226 in the June report. Those aged 35+ had a significantly higher spend than those aged 18-34 (£247 vs £163).

3. Shoppers are still purchasing DIY equipment but there is evidence these are declining, whilst food & drink continues to grow.

4. 33% of UK online shoppers saw a decrease in their income and free delivery was seen as a top priority, as was being kept informed on delivery progress.

5. Royal Mail ranks highly in terms of awareness with their posties identified as trustworthy (72% in June).

COVID-19 has had an impact, in May and June, people were more likely to have experienced a decrease in disposable income rather than an increase (May increase 19% vs decrease 37%, June increase 21% vs decrease 33%). Spend on non-essential items saw a decrease, but clothes have bounced back to pre-Covid levels (with 48% buying in June 2020 vs 45% buying in 2019).* Middle aged shoppers were spending more online (on average, those aged between 35-54 years spent £261 online in June vs £245 for 18-34s), and delivery updates continue to grow in importance, increasing from 83% in May to 87% in June.

*3 month period tracked between January to end March, 2019.

Want to know more about how Royal Mail can support you and your customers during these challenging times? Contact your Account Manager or visit

royalmail.com/deliverymatters

COVID-19 Delivery Matters May/June 2020

Help to meet the needs of shoppers...• Food and drink sales are on the rise (44% in June vs

42% in May) and clothes shopping is ever popular, with 38% buying online in June 2020. We’ll inform shoppers when their order or outfit will arrive, with an estimated delivery window from 2 hours with our Royal Mail Tracked® services

• With shoppers increasingly ‘out and about’, Tracked delivery provides the flexibility to pick up from the UK’s largest Click & Collect network,* including over 10,000 Post Office® branches

• As people continue to shop online, we can help increase first time delivery success with new in-flight options that allow customers to switch delivery to a nominated safe place or neighbour

• Free delivery is a top priority, choose Royal Mail Tracked 48® for great value delivery in 2-3 days

• Next day delivery is on shoppers’ radars. Meet the needs of customers who ‘want it now’ with Royal Mail Tracked 24®

• As people begin to spend more, our Royal Mail Tracked® products offer peace of mind with inclusive compensation of up to £100

• 72% of online shoppers trust our posties to deliver. In uncertain times a familiar, reliable service matters.

*Triangle Management Services, 2019, UK Alternative Delivery Market Insight Study.

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