Table of Contents
Issues in the Market
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- Key themes
- Definitions
- Abbreviations
Future Opportunities
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- Making it mycybermarket.com
- Providing inspiration
- Simplifying healthy choices
- Broadening access
- Online top-ups
Market in Brief
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- Robust growth ahead to £6.9 billion
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- Figure 1: Consumer spending on online purchasing of food and drink*, 2004-14
- Tesco leads but losing ground
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- Figure 2: Leading retailers’ estimated shares of online food retailing, 2008/09
- One in three buys food online, 7% would like to do so
- Top-up in-store makes e-groceries pointless?
- Themes of 2008/09
Internal Market Environment
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- Key points
- The rise of broadband
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- Figure 3: Broadband penetration at home, 2004-08
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- Figure 4: Broadband penetration at home, by detailed age and socio-economic group, 2004 and 2008
- Online shopping still gaining
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- Figure 5: Purchasing from any websites in the last three months, 2002-08
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- Figure 6: Purchasing from any websites in the last three months, by age group and gender, October 2008
- Fashion and books lead e-shopping
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- Figure 7: Type of websites purchased from in the last three months, April 2009
- Figure 8: Selected websites purchased from in the last three months, Oct 2002-Oct 2009
- Security concerns remain a challenge
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- Figure 9: Extent to which security concerns affect purchasing on the web, by age, April 2008
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- Figure 10: Extent to which security concerns affect purchasing on the web, by socio-economic group, April 2008
Broader Market Environment
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- Key points
- Disposable incomes stagnate
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- Figure 11: UK PDI and consumer expenditure, current and constant 2009 prices, index, 2004-14
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- Figure 12: Ways in which grocery shopping habits have changed in the last 12 months, July 2009
- The retail sector hit by downturn
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- Figure 13: UK: Year-on-year retail sales value growth, monthly, January 2008-June 2009
- Figure 14: UK: Year-on-year retail sales volume growth (excluding inflation), monthly, January 2008-June 2009
- Food price inflation leaped ahead in 2008
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- Figure 15: Food and overall Consumer Price Inflation, 2004-09
- An ageing population
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- Figure 16: UK: forecast change in population, by age group, 2009-14
Market in Context
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- Key points
- The big four take two thirds of food sales
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- Figure 17: Leading UK food retailers’ shares of all food retail, 2008/09
- Food and drink is the top category by spend, after housing
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- Figure 18: Consumer expenditure, by category, 2009 (est)
- Figure 19: Year-on-year growth in spending on in-home food and eating out, 2005-09
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- The established level
- Mobile shopping
- Better communication
- Providing inspiration
- Ease of use and information
- Health help
- Offering value – virtually
Market Size and Forecast
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- Key points
- Is online growth in the grocers' interest?
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- Figure 20: Share of online in total grocery sales*, 2005-09
- Rising access drives recent growth
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- Figure 21: Consumer spending on online purchasing of food and drink*, at current and constant 2009 prices, 2005-14
- Young families to remain key group
- Non-food to grow
- Factors used in the forecast
Retail Competitor Analysis
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- Key points
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- Figure 22: Leading retailers’ estimated shares of online food retailing, 2008/09
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- Figure 23: Supermarket usage, online and in-store, leading online grocers, July 2009
- Tesco's lead unchallenged
- Sainsbury's breaks £0.5 billion mark
- Asda lags behind despite expansion
- Ocado regains steam in 2008
- Waitrose remains in the minor league
- Organic box schemes still niche
- The milkman goes online too
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- Figure 24: Leading retailers’ estimated sales and shares of online food retailing, 2006-08
- Who’s missing (out)?
- Morrisons a maybe
- No plans announced by M&S
- The Co-op has its hands full
- Amazon entry rumoured
Retailer Profiles
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- Figure 25: Leading online food retailers’ comparison data, 2009
- Asda
- Ocado
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- Figure 26: Ocado product mix, by number of lines, 2008/09
- Sainsbury’s
- Tesco
- Waitrose
- Abel & Cole
- Riverford
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Brand Communication and Promotion
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- Key points
- Adspend dips in 2008
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- Figure 27: Main monitored media advertising expenditure on online grocery shopping*, 2005-08
- Direct mail loses out to TV
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- Figure 28: Main monitored media advertising spend on online grocery shopping, percentage by media type, 2006-08
- Tesco becomes top spender as Ocado cuts back
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- Figure 29: Main monitored media advertising spend on online grocery shopping, percentage by advertiser, 2006-08
- The channel makes a difference for brand promotion
- No more passing traffic
- New opportunities online
The Consumer – Online Food Shopping Patterns
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- Key points
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- Figure 30: Online shopping for groceries, July 2009
- Changes to grocery shopping habits
- Attitudes towards grocery shopping
The Consumer – Attitudes Towards Online Food Shopping
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- Key points
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- Figure 31: Attitudes towards shopping online for groceries (% agreeing), July 2009
- One-stop-shoppers
- Focus on fresh
- Delivery issues
- Attitudes by age
- The divided young
- Positive 35-44s
- Older consumers come across negative
- Attitudes towards grocery shopping online – the positives
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- Figure 32: Attitudes towards shopping online for groceries among regular and occasional online shoppers, (% agreeing) July 2009
- Barriers to online shopping
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- Figure 33: Attitudes towards shopping online for groceries among non-online shoppers, (% agreeing) July 2009
The Consumer – Target Groups
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- Key points
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- Figure 34: Marketing targets based on attitudes towards online food shopping, July 2009
- Online positives (41%)
- Unconvinced (21%)
- Store-engaged (38%)
Appendix – Internal Market Environment
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- Figure 35: Broadband penetration at home, by detailed demographics, 2004 and 2008
- Figure 36: Purchasing from any websites in the last three months, by detailed demographics, October 2008
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- Figure 37: Type of websites purchased from in the last three months, November 2002-April 2009
- Figure 38: Extent to which security concerns affect purchasing on the web, by detailed demographics, April 2008
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Appendix – Broader Market Environment
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- Figure 39: UK adult population aged 15+, by age group, 2004-14
- Figure 40: PDI, at current and constant 2009 prices, 2004-14
- Figure 41: Consumer expenditure, at current and constant 2009 prices, 2004-14
- Figure 42: Monthly year-on-year retail sales value growth, food, non-food and all retail stores, January 2007-June 2009
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- Figure 43: Monthly year-on-year retail sales volume growth, food, non-food and all retail stores, January 2007-June 2009
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Appendix – Market in Context
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- Figure 44: Spending on in-home food and eating out, 2004-09
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Appendix – The Consumer – Online Food Shopping Patterns
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- Figure 45: Statements on shopping for groceries at the supermarket, July 2009
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- Figure 46: Usage of online shopping for groceries, July 2009
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- Figure 47: Usage of online shopping for groceries, by demographics, July 2009
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Appendix – The Consumer – Attitudes Towards Online Food Shopping
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- Figure 48: Attitudes towards shopping online for groceries, July 2009
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- Figure 49: Attitudes towards shopping online for groceries (agree), by demographics, July 2009
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- Figure 50: Attitudes towards shopping online for groceries (agree), by demographics, July 2009 (continued)
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- Figure 51: Changes to grocery shopping habits in the last 12 months, by usage of online shopping for groceries, July 2009
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- Figure 52: Attitudes towards shopping for groceries at the supermarket (agree), by usage of online shopping for groceries, July 2009
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- Figure 53: Attitudes towards shopping online for groceries (agree), by usage of online shopping for groceries (continued), July 2009
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Appendix – The Consumer – Target Groups
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- Figure 54: Attitudes towards shopping online for groceries, by target groups, July 2009
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- Figure 55: Target groups, by demographics, July 2009
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- Figure 56: Changes in grocery shopping habits in the last 12 months, by target groups, July 2009
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- Figure 57: Attitudes towards shopping for groceries at the supermarket (agree), by target groups, July 2009
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