Online Grocery Retailing - UK - March 2014
“Grocers can cultivate greater shopper loyalty by encouraging cross-channel shopping: we think consumers are more likely to stick with those shoppers who are providing an integrated mix of supermarkets, online and c-stores that caters to different shopping missions.”
– John Mercer, European Retail Analyst
Some questions answered in this report include:
- Why is per-shopper value less online?
- So how should supermarkets be pushing the online channel?
- So how can stores and online be integrated?
- How big will online get?
Some 20% of adults now do all or most of their grocery shopping online – confirming the UK’s leadership in online grocery retailing in Europe.
Yet, there is a problem: less than 5% of the total food retailers’ sector sales are online. So online shoppers are under-indexing in value sales.
Our consumer research this year explored why this may be, by asking online shoppers impulse purchases when shopping online; we also asked about browsing and buying non-grocery products (ie general merchandise) when buying groceries on the internet. The findings confirm there are real disadvantages to retailers in shifting grocery shoppers from stores to the internet.
The online grocery sector size is defined as the online sales of grocery products (largely food and drink but also grocers’ food/drink/FMCG sales online).
It includes: Major grocers’ online sales of food and drink and other grocery products; online-only grocers’ sales (ie Ocado); specialist food and drink retailers’ online sales; online-based food box delivery schemes.
It excludes: Online general merchandise sales by major grocers (eg electricals or furniture ordered from direct.tesco.com or clothing ordered from asda.com); foodservice delivery (ie restaurant/takeaways ordered online); home delivery of groceries not ordered online.
This year, we also include a segment size and forecast for major grocers only – stripping out smaller, more niche retailers such as food specialists.
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