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 />
WHO Shops <strong>Onl<strong>in</strong>e</strong> for Groceries?<br />
As a first step <strong>in</strong> understand<strong>in</strong>g onl<strong>in</strong>e grocery shopp<strong>in</strong>g behavior and where it might be headed, it is<br />
worthwhile to take a closer look at <strong>the</strong> 11% <strong>of</strong> shoppers who say <strong>the</strong>y are already buy<strong>in</strong>g at least some <strong>of</strong> <strong>the</strong>ir<br />
groceries onl<strong>in</strong>e. <strong>The</strong>re are some key demographic differences between onl<strong>in</strong>e and <strong>in</strong>-store grocery shoppers<br />
but also a few areas where one might be surprised to see essentially no difference. <strong>The</strong>se differences (and<br />
lack <strong>the</strong>re<strong>of</strong>) suggest that onl<strong>in</strong>e grocery shopp<strong>in</strong>g is already a part <strong>of</strong> <strong>the</strong> shopp<strong>in</strong>g rout<strong>in</strong>e for households<br />
across a wide range <strong>of</strong> needs (Figure 3).<br />
<strong>Onl<strong>in</strong>e</strong> grocery shoppers are significantly more likely than <strong>the</strong>ir <strong>in</strong>-store counterparts to be male and<br />
young. In particular, onl<strong>in</strong>e grocery shoppers are more likely to be younger Gen X or older Gen Y. As Gen<br />
Y shoppers cont<strong>in</strong>ue to enter <strong>the</strong> household formation life stage and establish shopp<strong>in</strong>g rout<strong>in</strong>es, shopp<strong>in</strong>g<br />
onl<strong>in</strong>e for a whole range <strong>of</strong> products—<strong>in</strong>clud<strong>in</strong>g groceries—is likely to be a cornerstone <strong>of</strong> those rout<strong>in</strong>es.<br />
<strong>The</strong> <strong>in</strong>come differences <strong>of</strong> <strong>in</strong>-store vs. onl<strong>in</strong>e grocery shoppers are not as pronounced as one might th<strong>in</strong>k.<br />
In fact, shoppers at both <strong>the</strong> very low and very high ends <strong>of</strong> <strong>the</strong> <strong>in</strong>come spectrum are more likely to buy<br />
groceries onl<strong>in</strong>e.<br />
<strong>The</strong>re is virtually no difference between onl<strong>in</strong>e vs. <strong>in</strong>-store shoppers <strong>in</strong> terms <strong>of</strong> how likely <strong>the</strong>y are to have<br />
children liv<strong>in</strong>g at home. And perhaps most surpris<strong>in</strong>gly, <strong>the</strong> percent <strong>of</strong> onl<strong>in</strong>e and <strong>in</strong>-store shoppers who<br />
fall <strong>in</strong>to <strong>the</strong> 65+ age group is nearly identical.<br />
Figure 3: WHO Shops <strong>Onl<strong>in</strong>e</strong> for Groceries—<strong>The</strong> 11%: Affluent, Male, Gen Y<br />
48%<br />
57%<br />
52%<br />
43%<br />
41%<br />
33%<br />
2% 3%<br />
22% 21% 20% 16% 13% 9% 10% 10%<br />
Male Female 18-24 25-34 35-44 45-54 55-64 65+<br />
33%<br />
34%<br />
66%<br />
65%<br />
Children <strong>in</strong> HH No children <strong>in</strong><br />
HH<br />
32%<br />
Note: Arrows <strong>in</strong>dicate significant difference between <strong>in</strong>-store and onl<strong>in</strong>e grocery purchasers (90% confidence level)<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 />
36%<br />
- 5 -<br />
27%<br />
23% 23% 20%<br />
12%<br />
6%<br />
13% 9%<br />