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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© 2012 <strong>Kantar</strong> <strong>Retail</strong><br />
<strong>Kantar</strong> <strong>Retail</strong> Po<strong>in</strong>t <strong>of</strong> View<br />
LOOKING FORWARD: Where Do We<br />
Go From Here?<br />
<strong>The</strong> message from shoppers is clear and proves <strong>Kantar</strong> <strong>Retail</strong>’s core hypo<strong>the</strong>sis: <strong>The</strong> future <strong>of</strong> onl<strong>in</strong>e grocery<br />
shopp<strong>in</strong>g <strong>in</strong> <strong>the</strong> <strong>United</strong> States is a matter <strong>of</strong> when … not if. Shoppers with access to a full assortment, and homedelivery<br />
options understand <strong>the</strong> value proposition. O<strong>the</strong>rs have come to understand <strong>the</strong> value <strong>of</strong> purchas<strong>in</strong>g<br />
frequently purchased shelf-stable items onl<strong>in</strong>e. <strong>The</strong> only questions surround<strong>in</strong>g <strong>the</strong> evolution <strong>of</strong> onl<strong>in</strong>e grocery<br />
shopp<strong>in</strong>g is how quickly it will develop and how onl<strong>in</strong>e grocery shopp<strong>in</strong>g, once more widely available, will fit <strong>in</strong>to<br />
shoppers’ grocery shopp<strong>in</strong>g rout<strong>in</strong>es as <strong>the</strong>y optimize retailers and channels to fulfill <strong>the</strong>ir grocery shopp<strong>in</strong>g<br />
needs. As this plays out <strong>in</strong> <strong>the</strong> marketplace, key plann<strong>in</strong>g premises for suppliers and retailers <strong>in</strong>clude:<br />
1. Balance Shifts More Heavily to <strong>Onl<strong>in</strong>e</strong>, but Bricks & Mortar Still Dom<strong>in</strong>ates<br />
So what will <strong>the</strong> new balance between bricks and mortar and onl<strong>in</strong>e look like as <strong>the</strong> momentum shifts? With <strong>the</strong><br />
caveat that it is always dangerous to project what <strong>the</strong> future will look like by ask<strong>in</strong>g shoppers to hypo<strong>the</strong>size how<br />
<strong>the</strong>ir behavior may change IF <strong>the</strong>y adopt new behaviors, <strong>the</strong> new balance <strong>of</strong> grocery shopp<strong>in</strong>g between store and<br />
onl<strong>in</strong>e is still weighted toward <strong>the</strong> majority <strong>of</strong> purchas<strong>in</strong>g occurr<strong>in</strong>g <strong>in</strong> <strong>the</strong> physical store environment, with six <strong>in</strong><br />
10 shoppers stat<strong>in</strong>g that <strong>the</strong>y would shift only a m<strong>in</strong>ority <strong>of</strong> <strong>the</strong>ir grocery shopp<strong>in</strong>g onl<strong>in</strong>e (Figure 18).<br />
Figure 18: Amount <strong>of</strong> <strong>Grocery</strong> <strong>Shopp<strong>in</strong>g</strong> Shoppers Would Shift <strong>Onl<strong>in</strong>e</strong> If <strong>The</strong>y Started Buy<strong>in</strong>g Groceries <strong>Onl<strong>in</strong>e</strong><br />
39%<br />
No Kids, Males 42%<br />
11% 10%<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 />
Kids 15%<br />
Just a few items; would Buy most <strong>of</strong> my<br />
still go to store for most groceries <strong>in</strong> stores and<br />
groceries purchase specialty<br />
items onl<strong>in</strong>e<br />
All onl<strong>in</strong>e shoppers<br />
Male 13%<br />
Depends on my<br />
schedule, but I would<br />
prefer to purchase<br />
groceries <strong>in</strong> store<br />
- 21 -<br />
7%<br />
<strong>Shopp<strong>in</strong>g</strong> would be split<br />
evenly between onl<strong>in</strong>e<br />
and <strong>in</strong>-store<br />
Shopper segments significantly more likely than all shoppers to agree<br />
15%<br />
Females 17%<br />
Depends on my<br />
schedule, but I would<br />
prefer to purchase<br />
groceries onl<strong>in</strong>e<br />
Amount <strong>of</strong> <strong>Shopp<strong>in</strong>g</strong> Would Shift <strong>Onl<strong>in</strong>e</strong><br />
Less More<br />
13%<br />
Buy most <strong>of</strong> my<br />
groceries onl<strong>in</strong>e and go<br />
to <strong>the</strong> store for specialty<br />
items