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

3. Prepare for a World Where Habits and First-Mover Advantage Matter
As shoppers find the optimal balance between online and in-store grocery shopping, patterns will evolve and
retailers and suppliers must adjust their strategies and tactics to remain relevant. Critical among these skills
is understanding list formation in order to influence shopper behavior both online and in-store.
Lists start with categories purchased. As noted earlier, all categories are not created equal; fresh categories
account for a much larger proportion of the total basket online. In fact, for one multi-channel grocery store
player, each of the top three selling categories online represent more than double the share of sales from the
top three selling categories in the bricks and mortar store (Figure 21). As online assortment expands and
shoppers develop their own category preferences by trip type, monitoring this balance between the online and
in-store basket will be critical to developing comprehensive shopper marketing programs.
It is critical to begin understanding the dynamics of your category in online grocery as first-mover advantage
matters. When many rankings and site visibility hinge on “best sellers,” breaking into shoppers’ consideration
set is an arduous task. Online habits are also quite “sticky”—shoppers who purchase a number of other
categories are more likely to expand their category consideration set and once items make it onto the list, it
is very hard to get shoppers’ attention. When all it takes is four clicks for many online grocery shoppers to
complete their order, there is not much opportunity to interrupt, no less influence, the purchase decision.
Each of the top three
selling categories
online are more than
double the sales of
the top 3 selling
categories at the
bricks & mortar store
© 2012 Kantar Retail
Figure 21: Top Categories: ‘Fresh’ Online vs. ‘Traditional Grocery’ for Bricks & Mortar
#1
#2
#3
#4
#5
Source: Kantar Retail ShopperGenetics®, 52 weeks ending 3/2012
Online Grocer B&M Retailer #1
Fresh Market Meat
Fresh Market Produce
Fruits
Fresh Market Produce
Vegetables
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LOOKING FORWARD: Where Do We Go From Here?
% of Total Sales by Category
Milk
B&M Retailer #2
(Premium)
7.8% 3.3% 3.9%
Bread
Fresh Produce
6.0% 2.8% 2.6%
5.9% 2.7% 2.5%
Soda Potato Chips Coffee
3.5% 2.5% 2.3%
Milk Cereal Canned Vegetables
3.4% 2.5% 1.8%
Milk
Cheese Yogurt