Online Grocery Retailing in the EU and US 2011

Online Grocery Retailing In The EU And US 2011

Release date: October 21st, 2010 (88 pages)
PDF/Powerpoint format. Price: GBP995.00


Whilst only some of the profiled players are profitable, the real reason why grocers pile into online food is that their key customers, the very shoppers who spend the most (usually the older segments of the population, looking after a family and bigger household, usually from the upper socioeconomic background, the more affluent customers with the biggest basket size) expect online grocery capabilities and home deliveries or click & collect and being able to order on the go from their mobiles, home or work PCs.

Shoppers spending across channels are also the ones who show most loyalty to a multichannel grocer, when they are given the option to shop cross channel by this retailer. Indeed many retailers have found that the multichannel shopper is the most valuable customer to have and that online does add to rather than cannibalize existing sales. For most retailers it is all about keeping these customers and not losing them to the online competition.

That said with many technological changes in the pipeline or already available, online grocery is set to become a profit driver in its own right. Innovative cooling solutions, new storage initiatives, falling delivery costs, cheaper, more efficient fleets and falling customer acquisition costs are just some of the new growth ingredients combining to revolutionize the grocery sector.

Click & collect was viewed by many as a hybrid model that was destined to become obsolete in a few years time, but in fact click & collect is actually the fastest growing fulfillment model at the moment. Why? Because consumers value the convenience of having their order assembled and ready for pick up on their way back from work without having to wait at home at a specific time slot. Click & collect combines convenience and spontaneity. For retailers it eradicates costly home delivery and gets round the problem of keeping to dedicated time slots.

« The report is comprehensive yet succinct and to the point. After having identified drivers of change in online grocery as well as sizing out the opportunity, it goes on to give detailed, strategic recommendations before delving into competitor analysis, highlighting success factors and addressing outstanding threats. »
(Industry source, high level executive, Strategic Insight Department)

Table of contents

Executive summary p7 Market sizes and forecast p1 6 Why didn’t it work in the past? p1 7 What has changed? Strategic market drivers p1 9 What do consumers want? p2 0 Size of the opportunity: Facts and figures 2000-2010 &2010-2015 p2 2 Strategies and recommendations p2 4 Decision matrix - Different online business models p2 5 Setting clear goals p2 6 Understanding the online consumer p2 6 Customer acquisition and retention p2 7 The importance of technology p2 7 Integrated shopping experience and loyalty p2 8 Chilled storage solutions – the best in class example p2 9 Apps and tablets – the game changers p3 0 Recommendations p3 4 5 clicks from visit to purchase p3 5 The crucial last mile, time slots, delivery fees p3 5 Ramp up click & collect p3 6 M-commerce p3 7 Cross-selling and private label p3 8 The opportunity in the long tail p3 8 Case examples Europe p3 9 Belgium – Delhaize p4 0 France – Chronodrive and getting round the major hurdles p4 1 France – Carrefour and other French players p4 3 Case examples continued Germany – MyMuesli – the customization opportunity p4 6 Germany – Gourmondo – the premium long tail p4 8 Germany – Otto – looking for the right partner and learning from past mistakes p5 0 Italy – Esselunga – free delivery for pensioners p5 2 Italy – Coop and other Italian players p5 3 Switzerland – LeShop – the most innovative player, best in class p5 4 UK – Tesco – the behemoth, the leading player world wide p5 7 UK – Asda p6 0 UK – Sainsbury’s and other UK players p6 3 Case examples USA p6 4 USA – FreshDirect – privately held, thriving and expanding p6 5 USA – Alice – the FMCG players tip their toes in the water p6 8 USA – P&G goes all the way p7 0 USA – Peapod – Ahold’s secret weapon p7 2 USA – other players p7 4 Company strategy evaluation I p7 5 Spotlight on Amazon – from the US (Amazon fresh) p7 6 to Germany (Lebensmittel) p7 8 and the UK. Who is the target? p7 9 Company strategic evaluation II p8 1 Spotlight on Ocado – after the successful float, where next? p8 2 Sources p8 8