Let me start with a few facts and numbers that Kantar Worldpanel supplied to MarketingWeek.
- 75% of the money spent by households goes on food to be eaten on the same day or by people doing top up shopping
- 37% goes to top-up shops
The market interpreted these changes and for this reason the big retailers are focusing on the “convenience” store to satisfy the daily needs of the customers. For example Waitrose opened 10 “Little Waitrose” in London in 2013.
But if someone really made a difference it is Amazon in US. The new platform AmazonFresh allows people to get groceries sent to them for free on the same day as they ordered ($35 minimum amount).
Until now the promotions seemed to be the only hook to buy online. The number of promotions is one reason why people are stimulated to spend more on their grocery shopping online: 42% online against 38% in-store. Instead Amazon has shown that “placement” can be more important that “price” in the online market.
However I still love to see the food that I’m buying and finding inspiration walking around the aisles for my menus and feeling grateful to find a big offer with a red label.
To close, I would like to quote Phil Dorsett, Kantar Worldpanel expert solutions director, “going to buy groceries is one thing keeping internet grocery relatively small: people like seeing THE FOOD. Convenience will be a source of growth for retailers for a good while”.