Online Grocery: Strategies for Growth

Online food and drinks sales remain small

Food and drink internet retailing remains relatively underdeveloped globally compared to many other product categories. However, logistics provides a key strong growth and opportunities, with many retailers exploring innovative delivery and automated pick-up solutions.

Variable market maturity in food and drink

Online food and drink sales in France, the UK and some other markets, are relatively mature; showcasing the potential in other developed markets initially, and subsequently in advanced emerging markets, such as China. Pure play internet retailers in these markets are expanding rapidly and innovating to gain market share.

Home delivery: the UK shows the way for global players?

UK home delivery has been refined by retailers over several years and can provide valuable learning for global retailers. Although the combination of high population density, concentration of wealth in the South East of England and higher margins in grocery retailing compared to the European average are unique factors.

Multi-channel developments: click-and-collect models and innovations

Solving the “last-mile” equation (reducing the costs of residential delivery) remains elusive in grocery retailing. However the rapid development of drive-through units in France, shows a click-and-collect model that retailers see as more profitable than home delivery. In Japan and the UK, store-based click-and-collect has made strong inroads, notably with retailers using their convenience store networks.

Pure play retailers are minor players but evolving rapidly

While pure play internet retailers remain relatively niche players in grocery categories, the growth of China’s Yihaodian and the UK’s Ocado highlight the potential rise of these companies, helped by developing partnerships with other grocery retailers.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment