 | ONLINE GROCERY REPORT 2015 - USARelease date: March 31st, 2015 (165 pages) PDF/Powerpoint format. Price: GBP1,999.00 |
Abstract
This in-depth study includes:
• Amazon tracker data and annual best sellers in the grocery and pantry category
• Analysis of Amazon’s three grocery businesses: .com, Pantry and Fresh
• A recommendation section for FMCG players in light of AmazonFresh
• A recommendation section for 3P retailers and omnichannel players in light of AmazonFresh
• Thorough, deep dive business model analysis of other major players in the US context with the relevant data
• Insights into numerous start up players in the recipe bags, crowd sourced eating and online food marketplaces space
• Detailed statistics on the online grocery sector in the USA including our forecasts
• A complete overview of the US online grocery market, risers and fallers, innovators and laggards
• Strategic recommendations - how to deal with the sharing economy, crowd sourced deliveries and online farmers markets
• The state of play in fulfillment: home delivery, click and collect and drives...
• ...and the future of fulfillment: delivery through and to smartphones
Table of contents
| Executive summary | p13 |
| The context: US Online Grocery Retailing in 2014/5 | p20 |
| Online grocery sizes: US, 2006-2014 in $bn | p21 |
| Forecast 2015-2018: data, US online grocery in $bn, sizes to more than double | p22 |
| Online evolution: Marketplaces, recipe bag providers and crowd sourced eating, taking over from multi channel grocers and pureplays? | p23 |
| Online evolution: who is taking over from multi channel grocers and pureplays? | p24 |
| Linas Matkasse and the copycats – recipe bag providers tackling delivery costs differently – the subscription solution and unique product | p25 |
| Linas Matkasse: Swedish innovation, the recipe bag provider | p26 |
| Linas Matkasse: curated shopping in online grocery, skills enhancer | p27 |
| Linas Matkasse: innovative loyalty generation, the data | p28 |
| Linas Matkasse: foreign expansion, cooperation with an omnichannel grocer? | p29 |
| Linas Matkasse: latest developments, stretching the offer | p30 |
| Linas Matkasse: selling out, as the Samwers start pushing HelloFresh | p31 |
| US Clones: Blue Apron, Plated, venture funding | p32 |
| US Clones: Plated, Chefday - the drawbacks of the model, average LTV | p33 |
| Hello Fresh: KPIs 2014, subscribers, servings and net revenues | p34 |
| Hello Fresh: Rocket’s global takeaway group, the strategy | p35 |
| Rocket Internet: online grocery 2015, innovation versus execution | p36 |
| Rocket Internet: ROI targets, the success matrix | p37 |
| Rocket Internet: online grocery 2015, 4 weeks from decision to roll out | p38 |
| Rocket Internet: online grocery 2015, data driven decision making and execution | p39 |
| Flexing the model to hiring your own chef | p40 |
| Munchery: table-less restaurant of the future, between Blue Apron and Seamless | p41 |
| KitchenSurfing: hire a personal chef | p42 |
| Kitchit: moving towards same day | p43 |
| Crowd sourced eating | p44 |
| EatWith: sharing home cooked meals | p45 |
| Feastly: the Airbnb for dinner | p46 |
| Online farmers markets | p47 |
| Online evolution: who is taking over from multi channel grocers? | p48 |
| International examples from the EU | p49 |
| Good Eggs: building out the logistics infrastructure | p50 |
| Good Eggs: tying millennials to the business | p51 |
| Good Eggs: marketplace flywheel in motion on seller and buyer side | p52 |
| Good Eggs: fundings and lay offs | p53 |
| Farmigo: combining the farmers market with click & collect | p54 |
| Farmigo: growing out of CSA, doubling order sizes | p55 |
| Farmigo: a model fit for low density suburbia | p56 |
| Relay Foods: making c&c stations mobile, adding prepared foods | p57 |
| Relay Foods: doubling sales q-o-q | p58 |
| A strategic analysis of the key success factors of online farmers markets, recipe bag providers et al and what multichannel grocers should do about them | p59 |
| Online farmers’ markets: nine drawbacks of the model, seasonality difficulties and waste | p60 |
| Online farmers markets: nine drawbacks, from local bottlenecks to population density | p61 |
| Online farmers markets: nine drawbacks, from range overreach to customer LTV | p62 |
| What should multichannel grocers do about online farmers markets? | p63 |
| Online farmers markets: what is in it for the grocer? 14 reasons to get involved (1 - 8) | p64 |
| Online farmers markets: what is in it for the grocer? 14 reasons to get involved (9 - 14) | p65 |
| Recommendations: Does a food MP need to team up with postal service providers? | p66 |
| Recommendations: Does a food MP need its own logistics/fulfillment capacity? | p67 |
| Recommendations: Does it need to comprise retail and also a recipe bag solution? | p68 |
| Recommendations: Are MPs glorified veg box schemes? Should they sell non food? | p69 |
| Recommendations: What is the role of Just Eat and Delivery Hero et al? | p70 |
| Recommendations: Can a grocer operate a MP option? Who is doing this right now? | p71 |
| Recommendations: Should they drop ship or bundle orders from 3P at DC? | p72 |
| The future of fulfillment: Click & collect, drives, from Packstations to parcel boxes | p73 |
| The future of fulfillment: Online grocery retailing 2015, the EU innovations | p74 |
| Click & collect: from French drives to UK underground stations | p75 |
| Click & collect: Volvo’s digital car keys, DHL parcelboxes, TFL trials in London | p76 |
| Click & collect: the Asda Timpson tie up in London | p77 |
| Dia: the first discounter to launch a click & collect service | p78 |
| Dia: cheaper than in store, faster than drives and €30 average baskets | p79 |
| Dia: catering to pedestrians, trial widened out, France only for now – now closed | p80 |
| E.Leclerc: updating and combining the offer with food service, highways drives | p81 |
| E.Leclerc: the pizza and sushi drives | p82 |
| Recommendations: from c&c to catchment centricity | p83 |
| Future of delivery: the role of the smartphone | p84 |
| eBay Now: the personalised eBay Now service | p85 |
| eBay Now: teething problems, eBay Now service stalling | p86 |
| eBay Now: deliver straight to shoppers’ location, GPS signal from smartphones | p87 |
| eBay Now: service proposition, use cases, gifting, luxury | p88 |
| eBay Now: Is eBay the wrong company to offer this service? | p89 |
| Uber’s Corner Store: an emerging rival – offering the grocery category | p90 |
| Crowd sourced deliveries | p91 |
| Same day delivery: the new frontier, Instacart letting shoppers help each other | p92 |
| Instacart: Instacart Express – its own prime service, $2bn valuation, Uber collaboration? | p93 |
| Instacart: learnings from the expansion to Chicago, rapid change | p94 |
| Instacart: simplicity and the drawbacks of the model | p95 |
| Postmates: from mobile centric to the wider web, order food for a friend | p96 |
| Postmates: becoming an API for local delivery, not only grocery, funding | p97 |
| USA: 4 issues to overcome with crowd sourced delivery models | p98 |
| Company profiles | p99 |
| Profile: Walmart | p100 |
| Walmart: online sales, Indiana warehouse, innovation (I): Grocery Pickup | p101 |
| Walmart: Grocery Pickup, innovation (II): crowd sourcing deliveries | p102 |
| Walmart: stepping back from Instacart services – innovation (III): the Walmart Exchange | p103 |
| Walmart: Savings Catcher | p104 |
| Walmart outlook: making stores and logistics set up count for online | p105 |
| Walmart outlook: the Asda learnings, late competitor but a threat nonetheless? | p106 |
| Profile: Target | p107 |
| Target: realising the importance of ecommerce at last | p108 |
| Target: Curbside app and relaunching free delivery thresholds | p109 |
| Target: appointment from Tesco, a more competitive delivery offer | p110 |
| Target outlook: a year of rebuilding after the breach and Canada | p111 |
| Profile: Fresh Direct | p112 |
| Fresh Direct: sales data, starting to face competition from Amazon, Instacart and Google | p113 |
| Fresh Direct: launching recipe bags and CSA boxes, 2 thanksgivings | p114 |
| Fresh Direct: inventory management, the business model’s secret | p115 |
| Profile: Peapod | p116 |
| Peapod: all the data, profitable in mature markets, stable basket sizes | p117 |
| Peapod: the back end from warerooms to warehouses and beyond | p118 |
| Peapod: PUPs and the B2B opportunity, widening the range | p119 |
| Peapod: the future outlook, going Midwest | p120 |
| Others: Kroger, a new entrant to online grocery | p121 |
| Profile: Amazon offering an integrated solution | p122 |
| Amazon: three different business models for grocery, .com (1P and 3P) | p123 |
| Recent key developments: Coca-Cola’s 90s favourite Surge soft drink is revived | p124 |
| Recent key developments: private label nappies introduced.....then recalled | p125 |
| Amazon Annual Best Sellers US Grocery, March 2013-2014, 1 – 25 | p126 |
| Amazon Grocery: annual best sellers in grocery, health & wellness niche | p127 |
| Amazon Grocery: annual best sellers in grocery, average pricing, buy now box, active sellers | p128 |
| Amazon Grocery: annual best sellers in grocery, 3P issues and problems | p129 |
| Amazon Pantry – the attack on Costco | p130 |
| Amazon Pantry: targeting the Costco shopper, box helps logistics and drives sales | p131 |
| Amazon Pantry: cleaning up legacy issues, all 1P, subscribe & save on overdrive | p132 |
| Amazon Annual Best Seller USA Pantry, March 2013-2014, 1 – 25 | p133 |
| Amazon Pantry: annual best sellers, Pantry – addressing a different shopper | p134 |
| AmazonFresh – tying the strategy together, the attack on Walmart | p135 |
| AmazonFresh: Amazon’s third business model for grocery | p136 |
| AmazonFresh: late cut off points, challenges require major rethink | p137 |
| AmazonFresh: Seattle spotlight, grocery marketplace version 2.0, heading to California | p138 |
| AmazonFresh: the LA expansion, the Prime Fresh offer | p139 |
| AmazonFresh: Fresh as mix calculation and loss leader? Fresh as ecosystem? | p140 |
| AmazonFresh – recent key developments | p141 |
| June 2014: soft launch of local takeout service to rival Seamless | p142 |
| October 2014: Fresh entering Brooklyn, order threshold of $35 | p143 |
| Recent key developments: Bozzuto’s to supply Fresh in New York | p144 |
| Recent key developments: Bozzuto’s – click & collect options? | p145 |
| November 2014: AmazonFresh in Philadelphia, using NY template | p146 |
| December 2014: Takeout & Delivery is officially launched in Seattle | p147 |
| AmazonFresh – data and strategy | p148 |
| AmazonFresh: data, key customer statistics, uplifts, basket sizes, the reasons behind Fresh | p149 |
| AmazonFresh: Fresh category size, handling problems, roll out of same day delivery network | p150 |
| AmazonFresh: where is Fresh going? Importance of 3P for Fresh, Spotlight expansion | p151 |
| Strategy: focus on local, recreating the online marketplace in the physical world | p152 |
| Strategy: replicating the retail model in foodservice, travel next | p153 |
| AmazonFresh: the strategy explained, Fresh needs to work, looking ahead to takeaways | p154 |
| Recommendations – the fall out from AmazonFresh | p155 |
| Recommendations: FMCG partners, what to consider, Pantry vs Fresh vs .com | p156 |
| Recommendations: model out profitability for the next ten years on line by line basis | p157 |
| Recommendations: omnichannel players, launching a 3P operation | p158 |
| Outlook – the AmazonFresh opportunity going forward | p159 |
| Outlook: AmazonFresh as the category killer growth opportunity, but also it simply has to work | p160 |
| Outlook: AmazonFresh as a logistics investment; more warehouses, more stock, higher op costs | p161 |
| Outlook: online grocery in the US | p162 |
| Bifurcation between local organic niche and category killers, AmazonFresh and what Walmart will do | p163 |
| Charts and Tables | p164 |
| Chart 1: Grocery sizes: US, 2006-2014 in $bn | p21 |
| Chart 2: Forecast 2015-2018: data, US Online grocery in $bn, sizes to more than double | p22 |
| Chart 3: Hello Fresh: KPIs 2014, subscribers, servings and net revenues | p23 |
| Chart 4: Relay Foods: doubling sales q-o-q | p24 |
| Chart 5: AmazonFresh: data, key customer statistics, uplifts, basket sizes, the reasons behind Fresh | p149 |
| Table 1: Amazon Annual Best Seller US Grocery, March 2013-2014, 1 – 25 | p126 |
| Table 2: Amazon Annual Best Seller USA Pantry, March 2013-2014, 1 – 25 | p133 |
| Sources | p165 |
