Food and Drink E-Commerce in the Netherlands

PROSPECTS

Food and drink remains the fastest-growing category within e-commerce

Food and drink e-commerce remained the fastest-growing category within overall e-commerce in value terms in 2019, building on the rapid expansion witnessed from 2016, although from a small base. Sales were mainly driven by modern grocery retailers.

Food and drink specialists see strong growth

Besides modern grocery retailers, grocery specialists is another important source of online sales of food and drink, and in particular coffee and alcoholic drinks. Coffee remains a popular hot drink in the Netherlands, and the widespread adoption of hard pod coffee machines guarantees leading brands such as Nespresso a steady online revenue stream from customers ordering their pods through dedicated online shops.

High outlet density and advanced urbanisation pose structural challenges

The fact that despite such favourable conditions, online food and drink retailing in the Netherlands remains underdeveloped compared with the UK points to deeper structural challenges. One frequently mentioned factor is the relatively high outlet density of supermarkets and convenience stores in the country.

COMPETITIVE LANDSCAPE

AH.nl and Jumbo remain the two leading food and drink e-commerce players

AH.nl, the online division of grocery chain Albert Heijn, remained the leader in food and drink e-commerce in 2019.

Rapid but slowing expansion of Picnic

Picnic is a domestic online grocery retailer, launched in September 2015, and is commonly referred to as an “online supermarket”. Its product assortment aligns closely with other modern grocery retailers in the country, offering both food and non-food products.

E-commerce is mostly part of a multi-channel or omnichannel strategy

Unlike Picnic, Albert Heijn and Jumbo Supermarkten do not operate their online divisions primarily with a view of turning a profit via online sales, but rather see them as another opportunity for ensuring customer loyalty through proximity. To this effect, Albert Heijn and Jumbo Supermarkten pursue comprehensive strategies that include the opening of new convenience stores in high-traffic areas; experimenting with new store formats that blur the traditional boundaries between grocery retail and foodservice; investing in collection points, which are also popular with institutional customers; as well as improving their home delivery service.

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