Grocery

If You Operate a Grocery Store These 2017 Statistics Regarding Online Ordering Might Surprise You....

Even Google is entering the online grocery ordering business. How seriously will new technologies affect the operations of every food or restaurant retailers? We guess, based upon what we're seeing, grocery stores MUST provide an online option. But first, start with downloading and reviewing this Nielson Report from 2017 which is very informative...or this one from FMI "US Grocery Shopping Trends", both in pdf format.

One of the interesting findings relates to grocery. Currently, e-commerce accounts for just 3% of grocery spending, but at the same time is powering 80% of grocery dollar sales growth.  HOWEVER, here's what 19News (Cleveland) says is the future - "The Food Marketing Institute follows retail trends, and the group says digital grocery shopping is now the fastest growing segment in retail. with 43 percent of millennials surveyed saying they shop online for groceries at least occasionally. That's a 50 percent jump from 2016. And in as few as five to seven years, 70 percent of consumers will grocery shop online."

We are NOW hearing that 50% of grocery shoppers would use online ordering if they could (33% aren't interested) but that the loyalty of online shoppers = 3x sales and shopping of non-online and that, once they start a good online ordering experience with your store, they are 80% likely to stay...yep, that's right - 80% loyal.  So, if you're charging that 5% Instacart fee for delivery, think about (at least) putting in a FREE system of your own that doesn't charge extra for curbside/pick up.  We know, that means more work, but we surveyed two of our local Wal-Mart online food order fillers who told us they are getting hundreds of online orders per store daily.  

Wal-mart is known to run out of items more often than local markets which frustrates their online shoppers, so there's an entrance point here for local online ordering that is for PICK UP ONLY - not delivery.  Talk to us and save $ and customers?

Here's just a few of the local grocers that are already offering curbside and/or home food delivery or preparing to do so:


 

Meal Kit providers and the statistics from the industry are different from grocery.

https://www.mckinsey.com/industries/retail/our-insights/how-to-win-in-online-grocery-advice-from-a-pioneerUSA Today

https://www.usatoday.com/story/money/business/2017/10/27/online-grocery-shopping-revolutionizing-supermarkets/806496001/

“This is no longer something to just keep an eye on,” says the Food Marketing Institute, a retail food trade group based in Arlington, Va. “It’s happening, and it’s habituating very large numbers of people very quickly to online-only providers and to the online channel for groceries.” 

The organization has been surveying trends in the industry for 40 years. Its latest survey, released this month, describes growth the likes of which it doesn’t ever expect to see again: In 2017, 43% of millennials surveyed said they shop online for groceries at least occasionally — a 50% jump from 2016, with much of the growth coming among those who say they shop for groceries online “either fairly often or all the time.”

The phenomenon has attracted the likes of Costco, Walmart and Target. And it is not necessarily bad for conventional grocery stores, which are moving quickly and aggressively into the digital marketplace.

USA Today, NEW YORK — As retailers race Amazon to see who can get purchases to shoppers the fastest, Target says it is expanding same-day delivery and will use 1,400 stores across the U.S.

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If you aren't online - or getting there - you should see what the competitors are doing this year. Can you afford to be a follower? THIS is the Nuro and the Nuro is how Krogers is moving forward with delivery this year.  Is it necessary?  We don't think so, but Krogers wants to BE CERTAIN they not only meet demand, but acquire and keep the customer also.  So, they're thinking of exactly 'how' they're going to do that.  With a $250M (minimim) investment, maybe they know something? Read More HERE

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Five Trends for Grocery Retail in 2018

https://risnews.com/five-trends-grocery-retail-2018

This year brought a number of changes for the grocery industry – most notably Amazon’s acquisition of Whole Foods. In 2017, the industry experienced the convergence of online and offline channels…..as the grocery industry continues to rapidly evolve, retailers are feeling more pressure than ever, from both consumers and peers, to transform.

While 2017 trends will continue into the new year, many new challenges are predicted to arise. To stay competitive, it is important for grocery retailers to adapt to these five expected trends for 2018.

(Trend #2) E-COMMERCE WILL BECOME MORE PREVALENT

Amazon-Whole Foods has the potential to prompt widespread innovation in online grocery shopping, especially when 30% of U.S. shoppers are already purchasing some groceries online. U.S. online grocery retail is expected to boom in 2018 and major brick-and-mortar chains will be pressured to offer the e-commerce options that consumers are pursuing.... 

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CNBC News

https://www.cnbc.com/2017/01/30/online-grocery-sales-set-surge-grabbing-20-percent-of-market-by-2025.html

"Online grocery shopping could grow five-fold over the next decade, with American consumers spending upwards of $100 billion on food-at-home items by 2025, according to a report released Monday."

Supermarket giants Wal-Mart Stores and Kroger already draw sales from their online efforts and compete with Amazon and other e-commerce challengers, but the report from Food Marketing Institute and Nielsen points out that the online channel is likely to capture significantly more market share in the decade ahead from the bricks-and-mortar stores.

Around a quarter of American households currently buy some groceries online, up from 19 percent in 2014, and more than 70 percent will engage with online food shopping within 10 years, according to "The Digitally Engaged Food Shopper" report. It also found that of those who will buy digitally, 60 percent expect to spend about a quarter of their food dollars online in 10 years.  The report also found millennial shoppers surveyed were more willing to buy groceries online in the future than other consumer groups. It also pointed out that roughly 3 in 5 grocery shoppers today are looking for sales or coupons on their mobile devices before entering the store and that just over half will use mobile apps to shop at the store.

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ProgressiveGrocer.com

https://progressivegrocer.com/online-grocery-growth-accelerating

“While some food retailers have moved cautiously into ecommerce, adoption is now accelerating, driven partly by the increased share of households who are regularly buying groceries online," explains Steve Bishop, manager partner and co-founder of Brick Meets Click. "This research found that 24 percent of shoppers bought groceries online in the last 30 days, up from 22 percent (from) two years ago."

Other signs of accelerating adoption: The average number of online transactions per store is up almost 20 percent from last year, and total online sales are growing year over year at more than 25 percent.

CUSTOMER CONFIDENCE GROWING

Customer confidence in online grocery is also increasing. The average size of supermarket online transactions – $148 according to the recent Brick Meets Click research – shows that customers are comfortable buying a broad range of grocery products online; the average value of customer orders increased over the previous year by more than 5 percent.

This growth is based on households buying a wide range of food items online from supermarkets. While it was expected that the share of online transactions would be high in edible grocery, dairy and frozen, it was more surprising that:

    • About 85 percent of online transactions included produce items.
    • Meat/seafood and deli were found in more than 66 percent of the transactions.
    • Bakery was found in almost 50 percent of the transactions.

Turning to fulfillment methods, 66 percent of the stores offered only pickup, 2 percent offered only delivery, and 32 percent offered both options. When stores offered both options, delivery was most popular; 74 percent of orders were delivered, versus 26 percent picked up.

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Shopping in The Digital Age: A Tale of Two Online Grocery Experiences.  So, if it's a choice for grocers, go it alone or do your own online shopping platform.  Here's a link to a great read to help determine what's best for your customers.

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Facebook fans spend almost 50pc more at grocery stores: report

By Chantal Tode http://www.mobilecommercedaily.com/facebook-fans-spend-almost-50pc-more-at-grocery-stores-report

September 26, 2014

A new report sheds some light on the question of whether or not social media engagement impacts retailers’ bottom lines, with the Facebook fans of one large regional grocery chain spending almost 50 percent more than non-fans.

The report from Collective Bias and Yeti Data, “Social Engagement and its Impact on a Buyer’s Purchases,” points to social media’s role in the marketing mix extending beyond reach and engagement to include a direct link with sales. The link between Facebook engagement and spending habits has grown stronger over the last three years even as other social marketing options have appeared.

“We know modern day shoppers rely heavily on their mobile device to shop,” said Bill Sussman, CEO of Collective Bias. “People check social media on their phones before a shopping trip and also while in the store for information, opinions and deals.

“Mobile content opportunities are based on the unique opportunities provided by each channel,” he said. “Retailers should pay attention to their content strategy for Foursquare, Google Local Search, and even Facebook Places.

“For a retailer to maximize the mobile experience they must deliver a cohesive and helpful social experience, from one location to the next, in order to attract a person to the store and then move them along towards a final purchase.”

Long-term relationships
The report is based on a study of the purchasing habits of the more than 600,000 loyalty card members at a large regional grocery chain before and after they became Facebook fans.

Key findings include that Facebook fans who posted 10 or more times on the grocer’s Facebook page spent over $1,000 more annually than a typical customer.

Additionally, Facebook fans who posted 10 or more times on the grocer’s Facebook page visited the store 40 more times annually than a typical customer or 2.5 times the visits of a typical customer.

The research revealed a direct relationship between the length of time a customer is a Facebook fan and the average amount he or she spends each week at the grocer. Facebook fans visited the store 30 percent more than a typical customer per year.

“We were surprised to find a direct relationship between the length of time a customer is a Facebook fan and the average amount he or she spends each week at the grocer,” Mr. Sussman said. “The monetary value of the customer rose exponentially the longer he or she was a Facebook fan.

“The takeaway for marketing is that social media’s work is not done once a customer becomes a fan,” he said. “The real value – in terms of revenue – becomes when a marketer can increase a customer’s engagement and number of touch points on social.”

Revenue strategy
The report also found that Facebook fans bought 125 more items, or 35 percent more, than a typical customer.

While a majority of Facebook fans were female, male Facebook fans visited the store 7 percent more often than female fans.

“Bottom line: grocers need to change their mindset that social is just an engagement strategy and realize it is also a revenue strategy,” Mr. Sussman said.

(Considering a grocery delivery start-up of your own? Consider our "MyGroceryGuy.com" proprietary localized shopping delivery service, including the app/tech and set-up assistance. 216-409-6004)