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

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© 2012 Kantar Retail WHO Shops Online for Groceries? As a first step in understanding online grocery shopping behavior and where it might be headed, it is worthwhile to take a closer look at the 11% of shoppers who say they are already buying at least some of their groceries online. There are some key demographic differences between online and in-store grocery shoppers but also a few areas where one might be surprised to see essentially no difference. These differences (and lack thereof) suggest that online grocery shopping is already a part of the shopping routine for households across a wide range of needs (Figure 3). Online grocery shoppers are significantly more likely than their in-store counterparts to be male and young. In particular, online grocery shoppers are more likely to be younger Gen X or older Gen Y. As Gen Y shoppers continue to enter the household formation life stage and establish shopping routines, shopping online for a whole range of products—including groceries—is likely to be a cornerstone of those routines. The income differences of in-store vs. online grocery shoppers are not as pronounced as one might think. In fact, shoppers at both the very low and very high ends of the income spectrum are more likely to buy groceries online. There is virtually no difference between online vs. in-store shoppers in terms of how likely they are to have children living at home. And perhaps most surprisingly, the percent of online and in-store shoppers who fall into the 65+ age group is nearly identical. Figure 3: WHO Shops Online for Groceries—The 11%: Affluent, Male, Gen Y 48% 57% 52% 43% 41% 33% 2% 3% 22% 21% 20% 16% 13% 9% 10% 10% Male Female 18-24 25-34 35-44 45-54 55-64 65+ 33% 34% 66% 65% Children in HH No children in HH 32% Note: Arrows indicate significant difference between in-store and online grocery purchasers (90% confidence level) Source: Compete Online Intelligence Survey, Spring 2012; Kantar Retail analysis 36% - 5 - 27% 23% 23% 20% 12% 6% 13% 9%
Online grocery shoppers are on the leading edge of online shopping in general. These are savvy online shoppers for whom all kinds of goods are just a click away. About 13% of online grocery shoppers say they are daily online shoppers (compared with just 5% of all shoppers), and they are more likely than average to purchase a wide range of products online (Figure 4). Index vs. All Shoppers Categories in the bottom-right corner represent the most “mainstream” online categories: a relatively high percentage of online grocery purchasers purchase these categories online, but so does everyone else. These are the categories with the highest online penetration overall. Shoes, electronics, movies, and books all have high double-digit online penetration that is growing quickly. Categories in the upper-right corner—household essentials, kitchenware and household appliances, and HBC products—represent the “leading edge” categories for online shopping. A relatively high percentage of online grocery purchasers also purchase these categories online, and they are significantly more likely than the average shopper to do so. These leading edge categories represent an “expanded grocery trip,” and suggest that solution selling around that expanded trip might resonate strongly with online grocery shoppers. 450 400 350 300 250 200 150 © 2012 Kantar Retail Furniture/home furnishings Garden supplies Sporting goods Figure 4: Categories Purchased Online by Online Grocery Purchasers Jewelry & accessories Home improvement products/tools Pet supplies Office/school supplies Baby, children, & toys - 6 - WHO Shops Online for Groceries? Electronics Movies, music, Books 100 video games 10% 20% 30% 40% 50% 60% % of Online Grocery Purchasers Who Also Purchase Category Source: Compete Online Intelligence Study, Spring 2012; Kantar Retail analysis High Penetration, High Index HH essentials Kitchenware & HH appliances Shoes Apparel HBC
Page 1 and 2: State of the Industry: The Future o
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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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