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The potential growth of online grocery

Posted on 31 Aug 2015 in Online, Shopper Marketing, Supply | 0 comments

IGD‘s forecasts show that online sales are still on a rapid growth curve. This channel is set to be the fastest growing part of the market and will have almost doubled in value by 2020 to £17.2bn.
The latest ShopperVista data shows that 27% of British shoppers claim to shop online for their groceries monthly, compared to 22% in 2010 when we started tracking this data. Although this figure has increased in the past five years, it still leaves significant scope for growth as a large number of shoppers are not currently using the channel on a regular basis, or at all.

There is an opportunity to communicate the benefits of online grocery shopping to all those who have not yet used it.
Four in ten British grocery shoppers say they have never shopped online for their food and groceries, rising even higher amongst the over 65s, those without children living in their household, and DE social category shoppers.There is also an opportunity to re-engage with the 33% of all shoppers claiming to be lapsed online grocery shopping users. 28% of those lapsed say the last time they shopped online for their groceries was more than two years ago, however in this time period a number of retailers have invested in significantly improving user experience, through revamped websites, reduced or no delivery charges, a better focus on fresh, roll out of click and collect. There have also been new entrants to the market such as Morrisons.
There are a number of retailer-led initiatives that can help to drive future growth for the online channel.

  1. Better delivery charges
  2. Improved use-by dates
  3. Quality picking (supplier staff as picky as you would be)

What suppliers and retailers can do is to ensure they are executing the basics well; investing in better quality images, improving site navigation and search functions, using online space to describe products as accurately as possible and collaborating with retailers to launch shopper-led events or drive product penetration are all important.

[source: IGD.com]

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