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The Future of Online Grocery Shopping in the United ... - Kantar Retail

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© 2012 <strong>Kantar</strong> <strong>Retail</strong><br />

WHY NOT Shop <strong>Onl<strong>in</strong>e</strong>? Barriers to<br />

<strong>the</strong> Growth <strong>of</strong> <strong>Onl<strong>in</strong>e</strong> <strong>Grocery</strong><br />

If onl<strong>in</strong>e grocery shopp<strong>in</strong>g is go<strong>in</strong>g to become a more ma<strong>in</strong>stream shopp<strong>in</strong>g activity <strong>in</strong> <strong>the</strong> <strong>United</strong> States, what<br />

barriers will retailers need to overcome? Why don’t more shoppers purchase groceries onl<strong>in</strong>e today? We must<br />

understand <strong>the</strong>se barriers to predict how <strong>the</strong> U.S. onl<strong>in</strong>e grocery market will need to evolve.<br />

Ironically, <strong>the</strong> primary reason shoppers cite for be<strong>in</strong>g hesitant to adopt onl<strong>in</strong>e grocery shopp<strong>in</strong>g is price, <strong>the</strong><br />

second-most important reason cited for buy<strong>in</strong>g groceries onl<strong>in</strong>e.<br />

Price. While those who have already moved some <strong>of</strong> <strong>the</strong>ir grocery shopp<strong>in</strong>g onl<strong>in</strong>e recognize that buy<strong>in</strong>g<br />

groceries onl<strong>in</strong>e can help <strong>the</strong>m save money, price (<strong>in</strong> several different forms) is one <strong>of</strong> <strong>the</strong> top reasons cited<br />

for not purchas<strong>in</strong>g onl<strong>in</strong>e (Figure 16). About one-half <strong>of</strong> shoppers say <strong>the</strong>y do not purchase groceries onl<strong>in</strong>e<br />

because <strong>the</strong>y do not want to pay delivery fees, while about one-quarter say that prices are too high onl<strong>in</strong>e or<br />

that it’s easier for <strong>the</strong>m to stick to <strong>the</strong>ir budget if <strong>the</strong>y shop <strong>in</strong> store.<br />

Figure 16: <strong>The</strong> Barriers: Reasons Why Groceries Are Not Shopped <strong>Onl<strong>in</strong>e</strong><br />

I don’t want to pay delivery or shipp<strong>in</strong>g fees<br />

I don't trust o<strong>the</strong>rs to choose my fresh food items<br />

I like to explore <strong>the</strong> store and add items not on my list<br />

I enjoy shopp<strong>in</strong>g <strong>the</strong> store and prefer to experience <strong>in</strong><br />

person<br />

Prices are too high<br />

I worry that my food will spoil or get damaged while on<br />

<strong>the</strong> delivery truck<br />

I worry that my food will spoil or get damaged <strong>in</strong> <strong>the</strong> mail<br />

It is easier to stick to my budget if I shop <strong>in</strong> stores<br />

I would have to plan too far <strong>in</strong> advance<br />

No grocery stores <strong>in</strong> my area accept onl<strong>in</strong>e grocery<br />

orders<br />

Delivery w<strong>in</strong>dows are too wide; don’t want to be stuck at<br />

home for hours wait<strong>in</strong>g for delivery<br />

My preferred grocery retailer does not accept onl<strong>in</strong>e<br />

grocery orders<br />

Products are not available <strong>in</strong> <strong>the</strong> quantity I would prefer<br />

to purchase<br />

I like <strong>the</strong> idea <strong>of</strong> hav<strong>in</strong>g someone else shop for me, but<br />

it’s too time consum<strong>in</strong>g to change shopp<strong>in</strong>g habits<br />

I have tried shopp<strong>in</strong>g onl<strong>in</strong>e, but can’t f<strong>in</strong>d all <strong>the</strong><br />

products that I <strong>of</strong>ten purchase <strong>in</strong> <strong>the</strong> store<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 />

- 18 -<br />

6%<br />

5%<br />

4%<br />

13%<br />

15%<br />

15%<br />

19%<br />

25%<br />

25%<br />

24%<br />

23%<br />

32%<br />

31%<br />

37%<br />

47%<br />

Cost/price<br />

Trust/store<br />

experience<br />

Delivery-related<br />

<strong>Grocery</strong>/product<br />

availability<br />

O<strong>the</strong>r

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