Yes, it’s true. In fact, online grocery penetration has doubled in just the past two years – from 11% in 2013 to 21% in 2015 – per the latest round of Brick Meets Click research that surveyed 12,000 grocery shoppers in 4Q 2015.
We release the first of two reports on that data this week. The findings in How Consumers Are Using Online Grocery and What It Means for Retailers in 2016 make it clear that although the activity is not yet widespread, online grocery has clearly moved into the mainstream set of alternatives consumers consider when they buy groceries.
We’ve been researching online grocery behaviors since 2012, and our goals for this project are threefold: to develop a framework that grocery retailers can use to evaluate the competitive situation in their markets, to identify a “short list” of things retailers need to track to stay on top of developments, and to lay out some of the work that needs to be done now.

These are the important questions for grocery retailers today.

  • How are consumers building online options into their grocery shopping, and how fast are they moving?
  • What will this mean in terms of opportunities for top line growth and threats to current business?
In addition to overall penetration, it’s important to look at online grocery shopping behavior from two perspectives – first, by type of trip, and second, by shopping frequency. The patterns that emerge reveal what is important to shoppers, and this report does both.

Key findings from this new report include:

  • Online grocery shopping is going mainstream: 41% of shoppers surveyed have given it a try at some point.
  • Penetration has doubled: 21% of the shoppers surveyed bought groceries online in the month before the 2015 survey, up from 11% in 2013.
  • Three distinct types of trips emerged from survey responses: Specific product shopping is the most common at 61%, followed by major grocery shopping at 15%, and subscription-based shopping at 12%.
  • Major online grocery shopping and subscription-based trips create strong bonds with customers. Seventy percent of shoppers who described their last trip as “major grocery shopping” say they’ll repeat with that retailer, and 76% of the subscription-based shoppers say so. Only 60% of specific-item shoppers intend to be repeat customers.
  • Active Users of online grocery services are spending a significant percentage of their weekly grocery dollars online – 16% on average.

What does it all mean? 

1. Online grocery is no longer a niche behavior.

The number of households shopping online is increasing rapidly, and active users of online grocery services are spending a significant percentage of their weekly grocery dollars online – 16% on average. And, when shoppers buy groceries online, they divide their shopping in different ways as they search for better ways to satisfy their grocery shopping needs.
These changes signal that brick and mortar retailers will need to develop strategies that minimize their vulnerability to losing business to online competitors and include ways to retain and even win new business by taking advantage of the competition’s vulnerability.

2. Grocery cannot afford to lag behind, especially when it comes to the shopping experience.

Grocery retailers need to understand that consumer expectations are shaped by their overall online experiences, and that grocery will be held to those standards. This sector cannot afford to lag behind how other channels handle the online shopping experience and how they blend it with physical stores. 

How’s your strategy looking?

To build an effective strategy, it’s essential for retailers to develop an accurate scorecard to understand what’s happening with customers in their market, one that includes:
  • Shopper satisfaction levels with current online shopping options
  • The major barriers limiting online spending of Occasional and Non-users
  • The share of online shopping done with the competition.