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 />
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WHERE Do Shoppers Shop <strong>Onl<strong>in</strong>e</strong> for Groceries?<br />
Dist<strong>in</strong>guish<strong>in</strong>g between shopp<strong>in</strong>g a retailer such as Amazon for groceries versus a true onl<strong>in</strong>e grocer<br />
scratches <strong>the</strong> surface <strong>of</strong> an important divide among onl<strong>in</strong>e grocery shoppers. Along a number <strong>of</strong> dimensions,<br />
it is useful to consider <strong>the</strong> “casual” onl<strong>in</strong>e grocery shopper versus <strong>the</strong> “dedicated” onl<strong>in</strong>e grocery shopper:<br />
Casual onl<strong>in</strong>e grocery shoppers are most likely to say that <strong>the</strong>y shop on Amazon.com for groceries. In general,<br />
<strong>the</strong>se shoppers spend less per onl<strong>in</strong>e grocery order and are buy<strong>in</strong>g groceries onl<strong>in</strong>e when <strong>the</strong>y can get a good<br />
deal, perhaps on a hard-to-f<strong>in</strong>d product. About n<strong>in</strong>e <strong>in</strong> 10 <strong>of</strong> <strong>the</strong>se shoppers say <strong>the</strong>y order groceries onl<strong>in</strong>e and<br />
have <strong>the</strong>m delivered via mail, but many (four <strong>in</strong> 10) do it on an <strong>in</strong>frequent basis (less than monthly). <strong>The</strong> casual<br />
onl<strong>in</strong>e grocery shopper cherry picks deals on specific products from Amazon, and onl<strong>in</strong>e grocery shopp<strong>in</strong>g has<br />
not replaced <strong>the</strong> grocery trip to a physical store for <strong>the</strong>se shoppers.<br />
Dedicated onl<strong>in</strong>e grocery shoppers, on <strong>the</strong> o<strong>the</strong>r hand, are more likely to shop true onl<strong>in</strong>e grocers like<br />
Safeway.com or Peapod.com. <strong>The</strong> dedicated onl<strong>in</strong>e grocery shopper buys groceries onl<strong>in</strong>e primarily<br />
because it saves time and has shifted a portion <strong>of</strong> her grocery shopp<strong>in</strong>g away from a physical store and to<br />
<strong>the</strong> web. Less than one-half <strong>of</strong> <strong>the</strong>se shoppers say <strong>the</strong>y shop for groceries <strong>in</strong> a physical store on a weekly<br />
basis, and <strong>the</strong>ir typical onl<strong>in</strong>e grocery baskets are significantly larger, both <strong>in</strong> terms <strong>of</strong> number <strong>of</strong> items<br />
and total basket r<strong>in</strong>g. About 60% <strong>of</strong> <strong>the</strong>se dedicated shoppers say <strong>the</strong>y prefer to do <strong>the</strong>ir stock-up grocery<br />
shopp<strong>in</strong>g onl<strong>in</strong>e, plus 40% prefer onl<strong>in</strong>e for fill-<strong>in</strong> purchase; and nearly three <strong>in</strong> 10 even prefer onl<strong>in</strong>e for<br />
mak<strong>in</strong>g immediate consumption purchases (Figure 6).<br />
Figure 6: Percent Who Prefer <strong>Onl<strong>in</strong>e</strong> <strong>Grocery</strong> <strong>Shopp<strong>in</strong>g</strong> for Specific Trip Types<br />
Stock-up<br />
Fill-<strong>in</strong><br />
Immediate use<br />
21%<br />
29%<br />
32%<br />
33%<br />
41%<br />
Casual <strong>Onl<strong>in</strong>e</strong> <strong>Grocery</strong> Shoppers Dedicated <strong>Onl<strong>in</strong>e</strong> <strong>Grocery</strong> Shoppers<br />
Source: Compete <strong>Onl<strong>in</strong>e</strong> Intelligence Study, Spr<strong>in</strong>g 2012; <strong>Kantar</strong> <strong>Retail</strong> analysis<br />
60%
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