Online grocery shopping expected to grow steadily

Online grocery shopping in the United States is expected to climb from under 5 percent at the end of 2017 to more than 8 percent by the end of 2022, according to a blog from Brick Meets Click Partner David Bishop.

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(MrMrsMarcha, Bigstock.com)
(MrMrsMarcha, Bigstock.com)

Online grocery shopping in the United States is expected to climb from under 5 percent at the end of 2017 to more than 8 percent by the end of 2022, according to a blog from Brick Meets Click Partner David Bishop.

Brick Meets Click is a strategic advisory firm that works with organizations to find and evaluate the right path forward in today’s integrated physical/digital food retail business.

Online shopping forecasting model

While the percentage of total online shopping is expected to grow by more than 3 percent over the five-year period, Brick Meets Click forecasts that online grocery sales will also grow 13 percent from a compound annual growth rate (CAGR) perspective during that same period, compared to a CAGR growth of 1.3 percent for in-store sales.

Brick Meets Click met those projections using a forecasting model developed over the past 5 years that incorporates market, competitor and shopper elements from its grocery insights platform, Grocery IP. All departments sold by brick-and-mortar grocers across fresh and packaged goods are included in the forecast.

Key drivers

Brick Meets Click identified three key drivers and how those drivers impact the anticipated growth for online grocery shopping. Those drivers are accessibility, attractiveness and acceptability.

  1. Accessibility – Accessibility of online grocery shoppers is already high, with more than 250 million adults in the United States, based on the percentage of the population that uses the Internet. 100 percent of that consumer segment can buy groceries online through pure-play providers like Amazon.com, and Brick Meets Click shopper insights show that nearly 80 percent of consumers can shop through at least one in-market provider.
  2. Attractiveness – The attractiveness of online grocery shoppers varies among consumers. Less than half of potential shoppers find it attractive.
  3. Acceptability – Improvements are continually being made to improve the acceptability of online grocery shopping. Consumers continue to learn how to make online grocery purchases, while providers are working to improve the ways they sell grocery goods online.

Gain further insights

More insights about online shopping trends can be learned at the 2018 Chicken Marketing Summit, scheduled for July 22-24 at the Four Seasons Resort Orlando at Walt Disney World. Brick Meets Click cofounder and chief architect Bill Bishop will moderate a panel discussion on ecommerce. Among the panelists will be Steve Lauder, consultant; Anthony Stallone, vice president of merchandising, Peapod; and Lenny Lebovich, CEO, Pre Brands.

Learn more and register for the 2018 Chicken Marketing Summit.

Further details on and insights from the Brick Meets Click study, as well as what it means for brick-and-mortar retailers in the future, will also be shared during a Brick Meets Click webinar on May 22.

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