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

© 2012 Kantar Retail
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LOOKING FORWARD: Where Do We Go From Here?
The availability of deals and promotional prices are the biggest influence on what makes it onto the list
online, with better than 80% of online grocery shoppers reporting that deals/promotional prices are very
or somewhat important. This also is the factor that manufacturers have the greatest ability to influence.
Shoppers’ purchase history online is the second-biggest influencer on list formation. Here the challenge
remains getting in the basket in the first place, but once online, a higher likelihood of remaining on the list.
Shoppers do not check their brand loyalty at the door when they shop for groceries online: brand loyalty is
an important factor in online list formation, and so manufacturers’ efforts in this area will have benefits
both in the store and online.
As more and more U.S. shoppers begin to migrate some of their grocery shopping online, here are a
few key considerations:
Online grocery shoppers are most likely to be older Gen Y/younger Gen X shoppers. As these
shoppers enter the household formation life stage and establish shopping routines, online
grocery shopping WILL become a more mainstream shopping activity.
“Convenience” means different things to different people. One of the reasons online shopping in
general has taken off is because it is able to meet these disparate definitions of “convenience,”
and online grocery shopping is no different. Innovation in “click & collect” models to manage the
cost of the last mile will revolutionize the landscape.
While price is the biggest perceived barrier to adoption of online grocery shopping, it also is
one of the most common reasons cited for buying groceries online. Online grocery shoppers
recognize the myriad ways that online grocery shopping saves them money and provides value.
Retailers’ ability to communicate those nuances to offline grocery shoppers will be vital to the
proliferation of online grocery shopping.
Even if shoppers have to pay a small premium for the convenience of online grocery shopping, it
is important not to underestimate the value of saving time, especially as technology “speeds up”
shoppers’ everyday lives. Site navigation and speed of checkout are critical enablers here.
Key questions/checklist: Do you understand how your category:
9 Is shopped for online?
9 Is added to the list: how and when?
9 Indexes in the online vs. in-store basket?