ONLINE GROCERY REPORT 2015 - EUROPERelease date: May 13th, 2015 (226 pages) PDF/Powerpoint format. Price: GBP2,490.00 |
Abstract
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 BOL.com 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, Auchan.fr, Grossbill | p88 |
Auchan: ␣1,154m in 2014 for Auchan.fr, 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, Amazon.de | 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 |
Larepera.net: multichannel vegetable box scheme | p164 |
Tudespensa.com: 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 |
Nemlig.com: from pure play start up to market leader, 150% growth in 2014 | p170 |
Nemlig.com: backing of Denmark’s richest man, Dagrofa cooperation | p171 |
Nemlig.com: 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 time | p187 |
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: frisco.pl, Alma, AuchanDirect.pl | p195 |
Romania: eMAG.ro 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 |