Corner shops app makes Snappy profits

Snappy Group, the Scottish technology company backed by former Sainsbury’s Justin King, enjoyed record breaking growth last year.

The group which owns Snappy Shopper, an app that enables customers to order groceries from independent retailers such as local corner shops as well as big convenience store groups including Spar and Nisa, said in the year to the end of April revenues had jumped by more than 50%.

While the pandemic has turbo charged growth of online grocers and rapid delivery companies, Snappy Group’s success suggests the shopping habit has become permanent. The group fulfilled more than 5.5 million orders last year, up from 3.6 million the year before, from its network of more than 1,800 merchants.

Snappy Group generates revenue through a subscription to its services and from charges to the customer and shopper per transaction. Its costs are smaller than rivals’ as it doesn’t have to house stock or run stores.

It said the average basket size of Snappy Shopper’s convenience stores is £26, compared with the average basket size of £7 in-store.

As well as Snappy Shopper, the Dundee-based group, which was founded in 2017, also has the Hungrrr app, which offers takeaway and table booking services for pubs and restaurants.

Mike Callachan, who co-founded Snappy Group alongside Alan Reid and Scott Campbell, said he was proud of the group’s “sustained year-on-year growth in a difficult period”.

He said the group’s ambition in the year ahead was to expand UK coverage, moving beyond convenience and piloting a branded platform outside the UK while developing the e-commerce and marketing tools that comprise its core offering to local merchants.

Alongside King, other investors in the group include Lord Laidlaw’s Highland Tech investment vehicle, Scottish Enterprise, and Kelvin Capital.