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

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© 2012 Kantar Retail Figure 19: Assessment of Convenience of Online Grocery Shopping (among shoppers who do not currently shop for groceries online) Having my groceries delivered to my house Picking up my pre-ordered groceries at the store, curbside pickup Picking up my pre-ordered groceries at the store, at a designated area in parking lot Placing my order online Creating my shopping list online Picking up my pre-ordered groceries at pick-up location away from retailer's store Picking up my pre-ordered groceries at the store, at customer service desk, etc. Using my mobile phone to manage my shopping list Placing my order via my mobile phone Source: Compete Online Intelligence Survey, Spring 2012; Kantar Retail analysis In fact, in early September 2012 Peapod announced three pilot free-standing locations in the Chicago area where shoppers can drive to pick-up their online orders; at least initially, shoppers must reside within 10 miles of the pick-up locations to be eligible to utilize the service. Ahold also is experimenting with Curbside pick-up at Stop & Shop locations, and more regional grocers such as Harris Teeter are expanding tests. The competitive dynamics that will unfold as more leading retailers look to innovate and elevate their value proposition in the quest to win share in an ever-competitive marketplace will begin breaking down the second reason why online is still nascent in the U.S. today: lack of availability and stimulating trial of the service to dispel the non-price barriers. There is most certainly work for retailers to do around improving the overall online shopping experience and value proposition in order to dispel perceptions about product quality, shopping “experience,” potential delivery issues, and the notion of “immediacy.” But what incentives will be most likely to get shoppers to try online grocery shopping? - 23 - 32% 30% 29% 26% 24% 20% 15% 12% LOOKING FORWARD: Where Do We Go From Here? 46% 38% 37% 45% 46% 46% 48% 49% 53% Very convenient Somewhat convenient Not at all convenient 37% 47% 51% 17% 23% 24% 25% 26% 27% 27%
Gen X and Y shoppers and households with kids at home are most likely to be receptive to incentives that would encourage them to trial online grocery shopping (Figure 20). Across the board, a retailer gift card for trialing the service is the most likely to influence a shift in behavior. In general, short-term incentives that would encourage shoppers to try it once are the most appealing to shoppers, while longer-term incentives that would help shoppers build an online grocery shopping routine are less popular. Gen Y/Gen X shoppers are significantly more likely than average to be enticed by both short-term and long-term incentives to try online grocery shopping. Taken with the fact that these young shoppers also are more likely to be shopping online for groceries already, it is apparent that this generational group will lead the move to grocery shopping online. © 2012 Kantar Retail - 24 - LOOKING FORWARD: Where Do We Go From Here? Figure 20: Incentives that Would Prompt Shoppers to Try Online Grocery Shopping (% who say incentive would be “very” or “somewhat” likely to make them try online grocery shopping) Note: Generational age ranges are approximate. Source: Compete Online Intelligence Study, Spring 2012; Kantar Retail analysis Total Gen Y Gen X Boomers Seniors Sample size 2082 711 460 701 210 Shorter-term: try it once A retailer gift card for trialing the service 64% 74% 65% 60% 44% A promotion to save a fixed amount on your next online purchase (e.g., $10 on basket over a minimum) 57% 65% 59% 53% 34% No delivery/pickup charges for a fixed number of orders (e.g., your first 5 orders) 56% 64% 58% 53% 39% No delivery/pickup charges for fixed time (e.g., 1 or 2 months) 56% 65% 57% 51% 35% Longer-term: establish a routine Easy navigation of the website 53% 58% 55% 49% 40% Automatic loading of the items you recently purchased in the store into a “favorites” list that would facilitate list building 43% 52% 47% 37% 24% Time-saving features such as integration of online list-building with recipes or circular 40% 51% 44% 33% 19% In-store demo on how to order online and set up account and first shopping list 35% 39% 39% 30% 28% Membership program whereby pay an annual fee vs. per-delivery fee 28% 35% 29% 23% 17%
Page 1 and 2: State of the Industry: The Future o
Page 3 and 4: Foreward © 2012 Kantar Retail The
Page 5 and 6: Despite the limited penetration of
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Page 11 and 12: Convenience. In terms of why shoppe
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Page 19 and 20: © 2012 Kantar Retail WHY NOT Shop
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The Future of Online Grocery Shopping in the United ... - Kantar Retail

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