Release date: May 13th, 2015 (226 pages)
PDF/Powerpoint format. Price: GBP2,490.00


Unlike in the US, where new start ups such as meal solution providers, takeaway delivery services and online farmers markets such as Plated, Grub Hub and Good Eggs or the delivery start ups Instacart and Postmates are challenging the status quo, in the EU, where online grocery is much more developed, the multichannel retailers have another thing to fear altogether: the discounter surge.

And unlike in the past, the discounters have started to offer a full grocery shop, including chilled and frozen products, not just the wine or non food options of yesterday – but a proper basket at discounter prices no less.

From the likes of Colruyt, Mercadona to Leaderprice and Dia to Lidl and even Aldi now considering entering the space, the discounters’ entry into the sector will change the economics of online grocery beyond all recognition once again – through brutal price deflation for a start.

The multichannel retailers have to react and already there is a model – and like the drives innovation it comes once again from France. The standout operators of this business model are Casino and another online grocery pioneer, Ahold in the Netherlands.

Both have started to follow customer expectations by offering food and non food online in a much more combined way (a reality also reflected in the UK, where the players are finally merging their various standalone sites) exploiting cross-sell opportunities.

Casino’s Cdiscount is clearly the outstanding player, with its highly successful C le Marche operation, its harnessing of cross sell opportunities and driving cross promotions in Casino’s hypermarkets, (such as online prices in offline environments, one off long tail promotions etc), and of course the click & collect execution.

However the real crucial element in the strategy is opening up to 3P players, so in effect operating a marketplace model not too dissimilar to Amazon. For both Casino and Ahold the GMV from 3P players is growing rapidly and much faster than the 1P business.

Another growth opportunity for online grocery is much deeper embedding into consumers’ lives through connected kitchen devices such as Amazon dash, Chronodrive’s Izy, Waitrose’s Hiku or Carrefour’s device launched into the Belgian market.

These devices are a supreme loyalty and ecosystem tie in tool and disable much price comparison. In future we expect the software to move onto the Apple smart watch and other wearable devices. However for now they will necessarily remain rather niche.

Other opportunities for future growth across the EU include the B2B opportunity, with canteens, kindergardens, factories identified as new clients – especially as food service in general has seen such a transformation towards food trucks, premiumisation and fragmentation.

Now that online grocers’ B2C operations have been set up, the investment and logistics footprint and assets can be made to work harder by competing with the traditional wholesale trade as well as with food service providers.

This report serves two purposes. On the one hand, it is a discussion of the various key markets and players operating in the EU space and on the other, it gets readers to consider the direction in which online grocery is heading: Will the discounters succeed at e-commerce? Are the connected kitchen devices a serious glimpse into the future or just a gimmick? Could grocery retailers be tempted to adopt an Amazon-style 1P and 3P business model?

Looking ahead, the intersection between online and food will create new business models that are set to disrupt the multichannel grocers and their sometimes still fledgling offerings. There is undoubtedly much more to come going forward.

Table of contents

Executive summary p16
The context: EU Grocery Retailing in 2014 p17
Grocery sizes: EU 27, 2009-2014 in ‘000 ␣bn, e p24
Grocery sizes: shoppers cut back, shop around and go to hard discounters p25
Grocery sizes: EU 27, 2008-2014 growth in % p26
Grocery sizes: EU 27 2008-13 growth in %, rankings & analysis p27
Grocery per capita sizes: EU 27 in 2013 in ␣, from Finland to Bulgaria p28
EU Grocery Retailing in 2015 – Online sizes p29
Online grocery sizes: EU 27, 2009-2014 in ␣m e p30
Online grocery sizes: the transformation of the sector, analysis p31
Online % share of total grocery 2011-14: EU 27, UK, France, Benelux p32
Online grocery sizes: Scandinavia a hotbed of development, tough German market p33
Online grocery sizes: CEE the opportunity, driven by Auchan, Tesco et al p34
Online grocery sizes: Top 3 account for more than 4 in every ␣5 spent p35
Forecast for EU online grocery p36
Online grocery sizes: EU Growth rates and forecast to 2017, when will AMZN Fresh arrive? p37
Forecast 2009-2019: data, EU Online grocery in ␣m, exponential growth p38
Benelux – Netherlands p39
Albert Heijn: the online grocery opportunity, from to PUPs p40
Albert Heijn: cannibalisation versus loyalty, real incremental investment in BOL p41
Ahold: the BOL acquisition and the transformation to a 3P marketplace platform p42
Ahold: 3P marketplace accounting for 16% of GMV, the AH overlap p43
Offering an integrated solution, Ahold & BOL p44
Recent key developments: BOL’s 3Ps hit ␣100m in sales p45
Ahold: Online grocery stats at Ahold, no impairment charges on store estate p46
Netherlands: Jumbo’s c&c providing some much needed competitive pressure p47
Benelux – Belgium p48
Belgium: Delhaize Group – under pressure from the discounters p49
Belgium: Delhaize offering home deliveries and click & collect p50
Belgium: Louis Delhaize launches wink, a standalone drive model p51
Colruyt: Collect & GO, Collishop and Collivery, 5k new customers per collection point p52
Colruyt: Collect & GO, second DC to serve pick up demand, 650,000 orders p.a. p53
Colruyt: Collect & GO drive opened, a model for Aldi and Lidl? p54
Colruyt: Collishop workshops and Collivery targeting the B2B opportunity p55
Belgium: Carrefour’s connected kitchen, a great step forward in food retailing? p56
France: the invention and innovation of le drive, the golden age is over p57
France: the home of the drives, 603 new openings in 2014 p58
Drives: Outlet numbers per retailer, Q1 2015 France p59
France: the difference between pure drives and pick up points, Nielsen ␣gures p60
France: 2014 drive sales per retailer, Auchan Aubagne with ␣19.4m in sales p61
France: the drive phenomenon is running out of steam, a new era p62
France: 3 point growth difference between a drive and no drive at supermarkets p63
France: investments in stand alone drives are down p64
Company pro␣les – France’s leading players p65
E.Leclerc: drive market leader, ␣1.9bn in sales in 2014, rapid growth p66
E.Leclerc: innovation from a rather conservative player p67
E.Leclerc: testing new models, central commissioning, non food, drive hybrids p68
E.Leclerc: the pizza and sushi drives, updating and combining the offer, highways p69
E.Leclerc: slowdown and closures ahead, a drive for downtown p70
Carrefour: still playing catch up in online grocery p71
Carrefour: Ooshop and electric cars trials in the old town of Lyon p72
Ooshop: drawing daisies petal loops around de-central and local depots p73
Carrefour: using the Seine for online grocery deliveries, sharing loads in Paris p74
Dia: the ␣rst discounter to launch a click & collect service p75
Dia: cheaper than in store, faster than drives and ␣30 average baskets p76
Dia: catering to pedestrians, trial widened out, France only for now – now closed p77
Casino: Casino, Cdiscount and drives, the best French omnichannel player p78
Cdiscount/Cnova: Cdiscount going 3P, GMV growth, internationalising, the IPO p79
Cdiscount/Cnova: 6th largest international listed player, 22 sites in 11 countries p80
Groupe Casino: the French online grocery offer, home delivery, drives, click & collect p81
Offering an integrated solution Casino & Cdiscount p82
Casino/Cdiscount: FBA equivalent, logistics in house, C le Marché runaway success p83
C le Marché: local commerce, stats p84
Cdiscount: going of␣ine, launching a tablet, building an ecosystem, DIY p85
Cdiscount: leveraging its marketplace model and 3P sellers in food too? p86
Leaderdrive: the ␣rst discounter with a drive, operational in just 3 days p87
Auchan: the innovator, the e-commerce structure, Auchandirect,, Grossbill p88
Auchan: ␣1,154m in 2014 for, Auchandirect, GrosBill, 1 hour slots p89
Auchan Direct: ”drives” for pedestrians in Paris, trolley hire p90
Auchan: ␣gures, hyper vs. Chronodrive 2014, average sales and growth p91
Auchan: ␣gures, hyper vs. Chronodrive 2014, average sales and growth, analysis p92
The Chronodrive model: the innovator p93
Chronodrive: arterial roads, pure solution versus add on, cost management p94
Chronodrive: As no trading permits were needed, a boom in the format followed p95
Chronodrive: recent developments, Chronovillage, Mag&Drive p96
Chronodrive: the ␣rst mover dilemma, all the stats p97
Chronodrive: losses leading to closures, pure model at a disadvantage? p98
Chronodrive: launching the Izy scanner, building an ecosystem p99
Chronodrive: target of 20,000 customers for its version of the dash p100
The outlook for drives in France p101
France: combining the opportunities of the drive with the store, innovation p102
France: the Loi Du␣ot and Tascom curtailing the boom p103
France: shift from expansion driven growth to l␣, pureplays bene␣t p104
Germany: all eyes on AmazonFresh’s arrival p105
Germany: Online grocery going head to head with Lidl and Aldi, p106
AmazonFresh: Fresh rolled out to Germany ␣rst? Rewe say so... p107
Company pro␣les – Germany’s leading players p108
Amazon: Germany has become Amazon’s most important foreign market p109
Amazon: Amazon 1P and 3P delivery issues p110
Amazon: expansion of grocery ranges, will $299 prime fresh fee work in Germany? p111
Amazon: stats and the crucial importance of the 3P sellers on the marketplace p112
Amazon: Amazon PL grocery product in Germany, ␣rst market launch p113
mytime: Buenting pioneering national online grocery coverage p114
mytime: focus on the B2B opportunity, target of 50%, ef␣ciency and utilisation p115
mytime: going into niches, cooperating with both DHL and DPD p116
Lidl: online operations, huge branded non food presence online, international p117
Lidl: tackling the non food issue, easier at Lidl than at Kau␣and p118
Lidl: online relaunch in Germany, coffee world, wine, pet foods, nappies etc p119
Lidl: online turnover ␣gures in Germany p120
Lidl: online health & beauty launch, private label and FMCG A brands, multichannel p121
Lidl: the future potential, h&b online p122
Real: Real’s online grocery sales – strong growth from a tiny, tiny base p123
Real: drive only as an experiment, while Globus has closed one down already p124
Rewe: Online grocery sales have quadrupled since 2011, investment and incubator p125
Rewe: the drive options, internal expectations and forecasts have not been met yet p126
Rewe: transparency drive, website relaunch and big data application p127
Rewe: cancelling price parity and heavy couponing, Tengelmann’s Bringmeister p128
DHL: German post invest big into working underutilisied capacity harder p129
DHL: DHL trials parcel boxes and rolls them out nationwide p130
Allyouneed: DHL backed start up, a partner to the FMCG industry p131
DHL: second DC in the Czech Republic, opening the CEE markets too p132
DHL: the synergy effects, reach of 30m German shoppers, the multi box p133
dm: launching its transactional site in 2015, click & collect opportunity p134
Alnatura: after the dm fallout the Gourmondo tie up, going online p135
Italy: catch up potential p136
Italy: online grocery opportunity is only addressed in the North p137
Italy: sector in lift off mode, French multichannel specialists and start ups p138
Cortilia: Vegetable box scheme connecting local farmers and shoppers p139
Cortilia: the subscription offer p140
Supermercato24: Italy’s Instacart copy, charging a premium p141
Supermercato24: Minimum delivery time is an hour, cash on delivery p142
Supermercato24: plans to serve all Italy and expanding into Britain and France p143
Esselunga: market leader, delivery charges waived for old age pensioners, turnover p144
Esselunga: second DC launched, service widened out, better OSA p145
Coop: online grocery Roma only, push into non food in 2013, tiny in online grocery p146
Spain: tailwinds and start ups p147
Spain: macroeconomic lift off to change the dynamics of online grocery p148
Spain: dedicated pureplayers and start ups p149
Spain: online grocery price de␣ation spells good news p150
Company pro␣les – Spain’s multichannel retailers p151
Mercadona: market leader, discounter offering home delivery p152
Mercadona: click & collect opportunity, website relaunch required p153
El Corte Ingles: Hipercor and Supercor, multichannel opportunity p154
El Corte Ingles: drive potential higher due to shopper pro␣le, targeting tourists p155
Carrefour: more about non food online p156
Carrefour: VAT discount, new apps, multichannel opportunity p157
Eroski: online grocery as only bright spot, launching drives and c&c p158
Alcampo: Auchan struggling with click & collect and drives in Spain p159
Dia: discounter online in Madrid only for now p160
Condis: regional player lowering online grocery prices p161
December 2014: Lidl launches Deluxe online in Spain p162
Niche players: Online pure-plays p163 multichannel vegetable box scheme p164 the pantry with price comparison p165
Ulabox: Unilever’s attempts at online grocery, FMCG muscling into the space p166
HiperDirect: start up with a focus on fresh produce p167
HiperDirect: trying to get a grip on logistics and costs p168
The Nordics: a hotbed of development p169 from pure play start up to market leader, 150% growth in 2014 p170 backing of Denmark’s richest man, Dagrofa cooperation p171 marketplace pioneer and the click & collect opportunity p172
Aarstiderne: organic box scheme, second biggest player p173
Aarstiderne: vertical integration, 45 different kinds of boxes p174
Finland: HOK Elanto opens the ␣rst Finish dark store, drive and airport pick up p175
Finland: Kesko expands its online grocery service, pureplays entering the market p176
Linas Matkasse and the copycats – recipe bag providers tackling delivery costs differently – the subscription solution and unique product p177
Linas Matkasse: Swedish innovation, the recipe bag provider p178
Linas Matkasse: curated shopping in online grocery, skills enhancer p179
Linas Matkasse: innovative loyalty generation, the data p180
Linas Matkasse: foreign expansion, cooperation with an omnichannel grocer? p181
Linas Matkasse: latest developments, stretching the offer p182
Linas Matkasse: selling out, as the Samwers start pushing hello fresh p183
Switzerland: the pioneer p184
LeShop: CHF165m in 2014, return to growth, partnering with Swiss Post p185
LeShop: a model for other markets? p186
LeShop: link up with Swiss Post, home deliveries only pm or evenings, now all day for the ␣rst timep187
LeShop: Average spend at CHF248 (␣236) in 2013, leading the EU players p188
LeShop: the data, 55k regular annual customers, average basket > 2x as big as EU sector p189
LeShop: M-commerce and the Migros advantage, loyalty and cumulus points p190
LeShop: second drive opened in January 2015, strong start p191
LeShop: LeShop CHF1.9m in drive sales in 6 months, C&C at Swiss Rail p192
Central Eastern Europe p193
Poland: A promising market led by Tesco p194
Poland:, Alma, p195
Romania: and Cora, Delhaize and Louis Delhaize p196
Romania: Carrefour, home delivery, drive opportunity? p197
Czech Republic: Leaders Tesco to have some company p198
Czech Republic: Rohlik, delivery in 90 min seven days a week p199
Slovakia: Tesco dominant online player, Carrefour closing its drive p200
Slovakia: Tesco experimenting with delivery fees, Gastrohaus p201
Hungary: Tesco, Orban administration’s impact on retail, G’Roby p202
Hungary: G’Roby, CBA p203
Croatia: Konzum building out its leadership position p204
Strategies section - The hard discounters’ online push p205
Discounters: online as a major threat and a key opportunity for others... p206
Discounters: ... things are changing fast, Netto, Dia, Leaderprice, Colruyt and... p207
Discounters: ... Mercadona, while Lidl and Aldi approach online slowly and carefully p208
Connected kitchen devices – the internet of things p209
Amazon Dash: scan and button, all invite only and prime for now p210
Others: Chronodrive partnership with Hiku, Waitrose, Carrefour Belgium p211
Carrefour: connected kitchen in Belgium, a great step forward in food retailing? p212
Connected kitchen devices: 5 common characteristics and bene␣ts p213
Connected kitchen devices: pointing towards the internet of things p214
Connected kitchen devices: moving to the Apple watch? p215
Connected kitchen devices: Ocado launches grocery app for Apple Watch p216
The multichannel opportunity – marketplaces and non food p217
Multichannel: implications and keys to success, learnings from Ahold and Casino p218
Non-food marketplaces: Grocers transforming into true multichannel players p219
3P model in online grocery: what is in it for the grocer? 14 reasons to get involved (1 - 8) p220
3P model in online grocery: what is in it for the grocer? 14 reasons to get involved (9 - 14) p221
Outlook p222
Outlook: online as share builder, click & collect, discounters to enter p223
Outlook: Online grocery as strategic weapon, marketplaces p224
Outlook: this is only the beginning p225
Sources p226