Consumers are Warming Up to Online Grocery

According to IRI, consumers' increasingly positive attitude toward online shopping is resulting in greater sales gains. In 2018, grocery e-commerce sales in the USA increased by 35.4%

Online grocery has been slow growing due to a host of factors, from friction in the shopping process to high costs and a lack of trust in letting someone else select products. To solve many of these issues, retailers have rolled out innovations like same-day delivery and click and collect. In the USA, Kroger and Walmart are among the two largest grocers offering a click-and-collect service, and both have made significant investments to expand this service. A click-and-collect service cuts out delivery fees, which are often the root cause for many consumers’ hesitation towards online grocery shopping, according to latest IRI survey.


In addition to promoting click-and-collect, retailers are looking at fulfillment efficiencies like automation. Prices are also coming down among large competitors, with Whole Foods stores offering free two-hour delivery for Amazon Prime members, while Instacart recently slashed its fees.


Driverless delivery is another innovation aimed at saving costs — though for now, the technology remains limited to a smattering of test runs. Kroger and Walmart are testing the waters in Arizona, while Stop & Shop is working on getting a mobile grocery up and running on the streets of Boston.

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