The Future of Online Grocery Shopping in the United ... - Kantar Retail
The Future of Online Grocery Shopping in the United ... - Kantar Retail
The Future of Online Grocery Shopping in the United ... - Kantar Retail
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Price. Price also is a frequently cited reason for purchas<strong>in</strong>g groceries onl<strong>in</strong>e: 41% <strong>of</strong> shoppers who buy<br />
groceries onl<strong>in</strong>e say <strong>the</strong>y do so because it saves <strong>the</strong>m money. Fur<strong>the</strong>r, an exam<strong>in</strong>ation <strong>of</strong> <strong>the</strong> reasons for<br />
buy<strong>in</strong>g groceries onl<strong>in</strong>e among key demographic groups <strong>in</strong>dicates that different groups <strong>of</strong> shoppers see<br />
different ways to save money by purchas<strong>in</strong>g groceries onl<strong>in</strong>e.<br />
Over one-quarter <strong>of</strong> Gen Y/Gen X, lower-<strong>in</strong>come “Have Nots,” and male shoppers say that one <strong>of</strong> <strong>the</strong><br />
reasons <strong>the</strong>y buy groceries onl<strong>in</strong>e is because it helps <strong>the</strong>m stick to a budget. For <strong>the</strong>se shoppers, <strong>the</strong><br />
runn<strong>in</strong>g total for <strong>the</strong>ir onl<strong>in</strong>e grocery cart helps <strong>the</strong>m stay on budget and avoid <strong>the</strong> temptation <strong>of</strong> impulse<br />
items that might get added dur<strong>in</strong>g a trip to <strong>the</strong> store.<br />
On <strong>the</strong> o<strong>the</strong>r hand, more affluent shoppers (household <strong>in</strong>come $60k+) like <strong>the</strong> ease <strong>of</strong> brows<strong>in</strong>g deals and<br />
coupons while shopp<strong>in</strong>g for groceries onl<strong>in</strong>e. For <strong>the</strong>se shoppers, <strong>the</strong> onl<strong>in</strong>e platform makes it easier for<br />
<strong>the</strong>m to feel like <strong>the</strong>y’re gett<strong>in</strong>g a “good deal.”<br />
Tesco positions its onl<strong>in</strong>e grocery bus<strong>in</strong>ess as meet<strong>in</strong>g both <strong>of</strong> <strong>the</strong>se money-sav<strong>in</strong>g needs (while deliver<strong>in</strong>g<br />
on convenience and ability to save shoppers time), <strong>of</strong>fer<strong>in</strong>g tools to help shoppers stay on-budget and avoid<br />
<strong>the</strong> temptation <strong>of</strong> impulse purchases, while at <strong>the</strong> same time entic<strong>in</strong>g <strong>the</strong>m with a good deal (<strong>in</strong> this case,<br />
£10 <strong>of</strong>f <strong>the</strong>ir next order) if <strong>the</strong>y are able to stay on-budget (Figure 10).<br />
© 2012 <strong>Kantar</strong> <strong>Retail</strong><br />
Figure 10: Tesco UK: <strong>Onl<strong>in</strong>e</strong> Value Proposition Calls Out Sav<strong>in</strong>g Time & Money, “Stick to Your Budget”<br />
Source: Company mailers, <strong>Kantar</strong> <strong>Retail</strong> analysis<br />
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WHY Buy Groceries <strong>Onl<strong>in</strong>e</strong>? <strong>The</strong> Shopper Perspective