Deliveroo Slashes Sales Outlook Amid Cost Of Living Squeeze
Food delivery giant Deliveroo has slashed its annual sales outlook after revealing demand for its takeaways has slumped amid the cost of living squeeze.
Deliveroo said growth in group sales by gross transaction value (GTV) dropped sharply to 2% on a constant currency basis in Q2, compared with 12% in the previous three months.
The company said it believes the drop “reflects the impact of increased consumer headwinds” and predicted the decline to impact sales across the entire year. The company forecasted annual sales growth of between 4% and 12%, a significant decrease from the previous 15% to 25% guidance.
In a comment, Deliveroo said, “management is confident in the company’s ability to adapt financially to a rapidly changing macroeconomic environment, through gross margin improvements, more efficient marketing expenditure and tight cost control.”
The move by Deliveroo marks the latest sign of consumers cutting back on non-essential spending amid the cost of living crisis, which is putting huge pressure on many households.