Deliveroo, the British food delivery firm, has announced its foray into the non-food retail sector. The company is venturing into areas such as toys, electronics, and other merchandise with the aim of stimulating growth, following the reiteration of its 2023 profit forecast.

Competing with Just Eat Takeaway.com and Uber Eats across Europe, the Middle East, and Asia, the company has introduced “Deliveroo Shopping” on its app. This feature enables customers to purchase non-food items, including D.I.Y. products, through a collaboration with hardware supplier Screwfix.

As Deliveroo ventures into these new categories, the company, with its platform hosting 162,000 restaurants and 20,000 grocery sites, and a network of delivery riders, will encounter growing competition from its shareholder, Amazon.

The American company possesses a 14.13% ownership stake.

Deliveroo anticipates a mid-teens percentage growth in its gross value transaction (GTV) annually in the medium term. The company has reiterated its projection that its earnings margin, as a percentage of GTV, will exceed 4% by 2026.

“There continues to be significant headroom for growth,” Deliveroo’s chief executive Will Shu said in a statement ahead of an investor day on Wednesday.

For its 2023 full-year, the company said it continued to expect adjusted core earnings between 60 million and 80 million pounds.