What's Happening?
Gousto, a meal box brand, is shifting its market strategy to compete directly with supermarkets, aiming to capture a larger share of the dinnertime market. The company reported a double-digit sales growth, reaching £180 million in revenue for the first
half of 2025. Despite a challenging economic environment, Gousto is on track to meet its full-year revenue growth target of 5% to 10%. The brand has launched a TV-led advertising campaign to highlight the convenience of ordering from Gousto compared to the chaos of supermarket shopping. Additionally, Gousto is trialing next-day delivery services to match online supermarket lead times, which has shown positive results in customer sign-ups and retention.
Why It's Important?
Gousto's strategic shift to compete with supermarkets signifies a broader trend in the meal kit industry, where companies are diversifying their offerings to capture more market share. This move could disrupt traditional supermarket sales, as consumers may opt for the convenience and tailored meal solutions offered by Gousto. The company's focus on technology-driven models and menu algorithms to optimize value for consumers is particularly relevant amid rising food inflation. By limiting price increases, Gousto is positioning itself as a cost-effective alternative, potentially attracting budget-conscious consumers during economic downturns.
What's Next?
Gousto plans to expand its next-day delivery trial to more customers, aiming to enhance its service offering and compete more effectively with supermarkets. The company will continue to focus on its 'convenience without compromise' proposition, leveraging technology to maintain competitive pricing. As food inflation continues to rise, Gousto's ability to offer stable prices could further strengthen its market position. The brand's ongoing advertising efforts and product innovations are expected to drive growth and increase its share in the dinnertime market.
Beyond the Headlines
Gousto's approach highlights the growing importance of technology in the food industry, where data-driven strategies are used to optimize costs and improve customer experience. This shift may encourage other meal kit companies to adopt similar strategies, potentially leading to increased competition and innovation in the sector. Additionally, Gousto's focus on convenience and value aligns with changing consumer preferences, where ease of access and cost-effectiveness are becoming key decision factors.
