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

Digging down another level into the barriers by key demographic segments illuminates some actionable
insights as we take a look at each of the five segments of barriers—price, trust/store experience, delivery
issues, planning, and availability (Figure 17). Let’s start with the number one barrier, price:
Female shoppers are significantly more likely than their male counterparts to cite all three price
barriers: don’t want to pay delivery, prices too high, and can stick to a budget shopping in stores. This
is consistent with the reason why shoppers do shop online where females are significantly less likely
to shop online to save money and stick to a budget. For online grocery retailers to win female shoppers
in particular (who make up the lion’s share of primary grocery shoppers in U.S. households), price
perception and ability to stick to a budget are the keys to the kingdom. Online retailers will have to
communicate not only competitive prices but put delivery/shipping fees into a value context in order to
win her basket.
© 2012 Kantar Retail
WHY NOT Shop Online? Barriers to the Growth of Online Grocery
Figure 17: Reasons for Not Purchasing Groceries Online, by Demographic Segment
*Kantar Retail groups US households into 2 segments based on household income that also closely correlates with divergent shopping and spending behavior:
“Haves” > $60K per year, and the “Have Nots” < $60K
Note: Bolding/highlighting indicates significant difference between demographic segments, e.g., male vs. female (95% confidence level)
Source: Compete Online Intelligence Study, Spring 2012; Kantar Retail analysis
Kids in HH Age Income* Gender
No Yes Under 45+ Have Haves Male Female
45
Nots
Sample Size 1372 709 1171 911 1228 854 995 1087
Price Don’t want to pay delivery/shipping fees 49% 44% 44% 51% 47% 48% 44% 50%
Prices are too high 25% 27% 24% 27% 24% 28% 23% 28%
Easier to stick to my budget if I shop in
stores
26% 18% 20% 27% 26% 20% 20% 26%
Trust/Store Experience Don’t trust others to choose my
produce, meat, eggs, and other items
39% 33% 31% 45% 37% 37% 36% 38%
I like to explore the store and add items
not on my list
34% 28% 27% 37% 32% 32% 30% 33%
I enjoy shopping the store and prefer to
experience in person
33% 27% 29% 34% 33% 29% 30% 32%
Delivery I worry that my food will spoil/get
damaged while on delivery truck
24% 27% 27% 23% 27% 22% 26% 24%
I worry that my food will spoil/get
damaged in the mail
24% 25% 24% 25% 26% 22% 23% 25%
Delivery windows are too wide 16% 12% 14% 17% 15% 15% 15% 15%
Availability No grocery stores in my area accept
online grocery orders
14% 17% 14% 17% 17% 14% 14% 17%
My preferred grocery retailer does not
accept online grocery orders
13% 14% 12% 14% 13% 13% 13% 13%
Products are not available in the
quantity I would prefer to purchase
6% 5% 6% 5% 6% 6% 6% 6%
I have tried shopping online, but can’t
find all the products that I often
purchase in the store
4% 4% 5% 3% 3% 5% 4% 4%
Planning I would have to plan too far in advance 19% 17% 17% 20% 19% 18% 18% 19%
I like the idea of having someone else
shop for me, but it’s too time consuming
to change shopping habits
3% 7% 7% 2% 4% 6% 6% 4%
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