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Study: Convenience not a given in online grocery

Satisfying shopping experiences critical to channel’s growth

Russell Redman

February 11, 2019

4 Min Read
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Though billed as a key benefit of online grocery shopping, convenience remains a gap to be bridged for many consumers, new research from Bain & Co. and Google finds.

Of consumers who have shopped online for groceries once in the past 12 months, just 42% said the online experience saves them time, according to Bain and Google’s “Omnichannel Grocery Is Open For Business” report. The survey polled more than 8,000 grocery shoppers nationwide.

The convenience factor contributes to the low penetration rate of online grocery shopping in the United States, which currently hovers at 3%, the study revealed. Just 25% of respondents said they used an online grocery service in the last year, and only 26% of those users — or 6% of all consumers surveyed — reported that they’ve been placing online orders more than once a month. 

"Online grocery shopping in the U.S. trails that of other e-commerce categories in large part because our grocery shopping habits are so deeply ingrained, and online grocery retailers haven't yet convinced customers that grocery shopping online can be a better experience," said Stephen Caine, a leader in Bain & Company's retail practice.

"Traditional grocers have decades of experience optimizing their physical stores to align with how shoppers think — training them to navigate store shelves to easily find what they are looking for, making it easy for them to make trade-offs between products, and providing inspiration when they want to try something new,” he explained. “Online grocery shopping has not yet found a way to digitally replicate these cues simply and intuitively."

Related:Increasingly, fresh food purchases are happening online

When it comes to buying groceries online, the Bain/Google study defined convenience as saving time and an intuitive, seamless shopping experience. But for a lot of customers, especially those new to online grocery shopping, that hasn’t been the case.

“Consumers report that browsing aisles is one of the most enjoyable elements of in-store shopping. Browsing groceries via a web browser, on the other hand, can be a challenge: irrelevant search results, unhelpful product recommendations and limited filtering options increase the time required to fill a basket. These inconveniences add up and represent a major obstacle for most new adopters,” the report said. “E-commerce is expected to make life easier, but the Bain and Google survey found that it takes at least a few attempts with online grocery to begin to perceive a real benefit.”

Indeed, Bain and Google found that of respondents who shopped for groceries online three times within the past 12 months, 63% said buying groceries online saved them time versus a trip to the store. The percentage of shoppers agreeing that online grocery is a time-saver rises slightly among those who have done so four or five times in the past year and approaches 70% at six to 10 or more times.

Related:Online grocery shopping, spend poised to climb

“Online grocery does get easier as consumers become more familiar with a given retailer. They build familiarity with the web page and browsing layout, can easily reorder items from past purchases, and begin to benefit from personalized recommendations and other features,” Bain and Google observed. “To keep that shopper, retailers need to stimulate repeat trials — investing to acquire the shopper not just once, but three or more times to convince the customer of the benefits of shopping online. Now is the time for retailers to experiment with bounce-back offers to encourage follow-up visits, reminders and multi-trip discounts to help move consumers from trial to new-habit-forming adoption.”

Customers who regularly shop a particular grocery store are highly likely to make purchases with that same retailer online, according to the study.

When respondents who hadn’t used an online grocery service in the past 12 months were asked which one they’d try first, 96% cited a traditional brick-and-mortar retailer for home delivery. Eighty-five percent said they would select a store they already visit, while 11% said they would use another omnichannel grocer and 4% an online-only retailer.

Seventeen percent of those polled said they’ve tried a new retailer in their area in the last three months, and 25% indicated that they’re likely to try a new retailer for a routine grocery trip.

"Winning a first trial is so important because there is a general consumer 'stickiness' when it comes to online grocery. Seventy-five percent of online grocery shoppers say they are still using the first online grocer they tried," noted Michelle Paratore, a member of Bain’s retail practice. "Knowing that existing consumers are likely to try their online offering first, omnichannel retailers are well-positioned to keep these shoppers for continued visits and purchases as long as they deliver an experience that is convenient and meets shoppers' needs."

With e-commerce penetration expected to at least triple in the next decade, retailers able to provide a satisfying omnichannel grocery experience “have a rare opportunity to edge out their competition,” the Bain/Google report said. 

"Although the shift online will rapidly accelerate, we anticipate that the majority of grocery spend is still expected to occur in physical stores in 2030," according to Caine. "The winners in this changing grocery landscape will be the retailers that can deliver frictionless omnichannel experiences, investing in digital experiences and tools that save time for consumers shopping online or in the store."

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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