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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Among shoppers who shop retailers that <strong>of</strong>fer a fresh assortment (i.e., Safeway.com, Peapod.com, etc.),<br />
purchas<strong>in</strong>g <strong>of</strong> fresh categories is extremely common. About four out <strong>of</strong> every five shoppers <strong>of</strong> onl<strong>in</strong>e grocers<br />
purchase fresh categories (i.e., frozen, bakery, meat, chilled convenience foods, produce, and dairy) onl<strong>in</strong>e<br />
at least occasionally, dispell<strong>in</strong>g <strong>the</strong> notion that shoppers will not purchase fresh groceries onl<strong>in</strong>e if given <strong>the</strong><br />
opportunity.<br />
What do <strong>the</strong>se glimpses <strong>in</strong>to <strong>the</strong> onl<strong>in</strong>e shopp<strong>in</strong>g behavior <strong>of</strong> early adopters tells us about where <strong>the</strong> nascent<br />
U.S. onl<strong>in</strong>e grocery bus<strong>in</strong>ess is headed?<br />
1. Shoppers have an appetite for purchas<strong>in</strong>g groceries onl<strong>in</strong>e, even today where onl<strong>in</strong>e grocery shopp<strong>in</strong>g<br />
<strong>of</strong>ten means pay<strong>in</strong>g more for delivery/convenience.<br />
2. Produce and fresh products are already <strong>in</strong> <strong>the</strong> basket, dispell<strong>in</strong>g <strong>the</strong> notion that all shoppers want to<br />
pick out <strong>the</strong>ir own perishables. This trend is particularly acute when look<strong>in</strong>g specifically at Gen Y/Gen X<br />
shopper behavior (Figure 15); beyond <strong>the</strong> three baby-related category which significantly over-<strong>in</strong>dex as<br />
you would expect due to life stage, Gen Y/Gen X shoppers are significantly more likely to purchase fresh<br />
categories (<strong>in</strong> green) onl<strong>in</strong>e, quickly followed by alcoholic and non-alcoholic beverages.<br />
Given <strong>the</strong> proclivity that both <strong>the</strong> casual and dedicated onl<strong>in</strong>e shoppers have to purchas<strong>in</strong>g onl<strong>in</strong>e, as onl<strong>in</strong>e<br />
grocery shopp<strong>in</strong>g options proliferate across <strong>the</strong> <strong>United</strong> States and more shoppers have <strong>the</strong> ability to buy<br />
groceries onl<strong>in</strong>e, fresh categories will be a critical part <strong>of</strong> <strong>the</strong> onl<strong>in</strong>e basket—just as <strong>the</strong>y are among <strong>in</strong>-store<br />
grocery shoppers—more evidence that lends credence to our “when not if” prediction.<br />
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335<br />
© 2012 <strong>Kantar</strong> <strong>Retail</strong><br />
268<br />
Figure 15: <strong>Grocery</strong> Categories Purchased <strong>Onl<strong>in</strong>e</strong> at Least Occasionally:<br />
Index <strong>of</strong> Gen Y/Gen X to Boomers/Seniors<br />
194 182 178 170 163 157 148 143 141 139 137 136 134 133 133 126 114 113 111 110 105 99<br />
Source: Compete <strong>Onl<strong>in</strong>e</strong> Intelligence Survey, Spr<strong>in</strong>g 2012; <strong>Kantar</strong> <strong>Retail</strong> analysis<br />
- 17 -<br />
WHY Buy Groceries <strong>Onl<strong>in</strong>e</strong>? <strong>The</strong> Shopper Perspective<br />
Index <strong>of</strong> 100 =<br />
Gen Y/Gen X and<br />
Boomers/Seniors<br />
equally likely to<br />
purchase onl<strong>in</strong>e