More than a third of grocery shoppers buy at least some of their groceries online. While it’s still the minority, it’s been steadily climbing – it was just 25% in 2022. The number of different online grocery use cases has helped it grow; it’s not just about replacing full grocery trips, but also smaller orders to delay a trip to the store, find a cheaper option or get products that are hard to find in stores. Its current momentum should continue and eventually make online grocery a tool that most shoppers use.
That evolution comes at a time when the grocery market is relatively flat. Sales have slowed – in part due to lower inflation, as well as the base effect comparing to the growth in 2023 – while competition continues to increase. Additionally, consumers’ budgets remain tight and they’re scrutinizing their expenditures in an economy that is steady, but vulnerable.
Those challenges present an opportunity for the retailers that effectively position themselves. Since value is a relative concept, grocers can create comparisons that make them the budget-friendly choice by contrast. Specifically, the foodservice industry’s struggles open the door for HMR to steal those occasions since grocery stores’ freshly prepared meals can offer highly competitive value compared to restaurants.
In such a highly competitive market where shopper budgets remain tight, retailers need to frame themselves in a way that creates positive perceptions of value.
Scott Stewart, Associate Director, Lifestyles & Retail
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