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 />
Figure 19: Assessment <strong>of</strong> Convenience <strong>of</strong> <strong>Onl<strong>in</strong>e</strong> <strong>Grocery</strong> <strong>Shopp<strong>in</strong>g</strong><br />
(among shoppers who do not currently shop for groceries onl<strong>in</strong>e)<br />
Hav<strong>in</strong>g my groceries delivered to my house<br />
Pick<strong>in</strong>g up my pre-ordered groceries at <strong>the</strong> store,<br />
curbside pickup<br />
Pick<strong>in</strong>g up my pre-ordered groceries at <strong>the</strong> store, at a<br />
designated area <strong>in</strong> park<strong>in</strong>g lot<br />
Plac<strong>in</strong>g my order onl<strong>in</strong>e<br />
Creat<strong>in</strong>g my shopp<strong>in</strong>g list onl<strong>in</strong>e<br />
Pick<strong>in</strong>g up my pre-ordered groceries at pick-up location<br />
away from retailer's store<br />
Pick<strong>in</strong>g up my pre-ordered groceries at <strong>the</strong> store, at<br />
customer service desk, etc.<br />
Us<strong>in</strong>g my mobile phone to manage my shopp<strong>in</strong>g list<br />
Plac<strong>in</strong>g my order via my mobile phone<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 />
In fact, <strong>in</strong> early September 2012 Peapod announced three pilot free-stand<strong>in</strong>g locations <strong>in</strong> <strong>the</strong> Chicago area<br />
where shoppers can drive to pick-up <strong>the</strong>ir onl<strong>in</strong>e orders; at least <strong>in</strong>itially, shoppers must reside with<strong>in</strong> 10<br />
miles <strong>of</strong> <strong>the</strong> pick-up locations to be eligible to utilize <strong>the</strong> service. Ahold also is experiment<strong>in</strong>g with Curbside<br />
pick-up at Stop & Shop locations, and more regional grocers such as Harris Teeter are expand<strong>in</strong>g tests.<br />
<strong>The</strong> competitive dynamics that will unfold as more lead<strong>in</strong>g retailers look to <strong>in</strong>novate and elevate <strong>the</strong>ir value<br />
proposition <strong>in</strong> <strong>the</strong> quest to w<strong>in</strong> share <strong>in</strong> an ever-competitive marketplace will beg<strong>in</strong> break<strong>in</strong>g down <strong>the</strong> second<br />
reason why onl<strong>in</strong>e is still nascent <strong>in</strong> <strong>the</strong> U.S. today: lack <strong>of</strong> availability and stimulat<strong>in</strong>g trial <strong>of</strong> <strong>the</strong> service to<br />
dispel <strong>the</strong> non-price barriers.<br />
<strong>The</strong>re is most certa<strong>in</strong>ly work for retailers to do around improv<strong>in</strong>g <strong>the</strong> overall onl<strong>in</strong>e shopp<strong>in</strong>g experience<br />
and value proposition <strong>in</strong> order to dispel perceptions about product quality, shopp<strong>in</strong>g “experience,” potential<br />
delivery issues, and <strong>the</strong> notion <strong>of</strong> “immediacy.” But what <strong>in</strong>centives will be most likely to get shoppers to try<br />
onl<strong>in</strong>e grocery shopp<strong>in</strong>g?<br />
- 23 -<br />
32%<br />
30%<br />
29%<br />
26%<br />
24%<br />
20%<br />
15%<br />
12%<br />
LOOKING FORWARD: Where Do We Go From Here?<br />
46%<br />
38%<br />
37%<br />
45%<br />
46%<br />
46%<br />
48%<br />
49%<br />
53%<br />
Very convenient Somewhat convenient Not at all convenient<br />
37%<br />
47%<br />
51%<br />
17%<br />
23%<br />
24%<br />
25%<br />
26%<br />
27%<br />
27%