Table of Contents
Executive Summary
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- The market
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- Figure 1: Online grocery sales (including VAT), 2009-19
- Segment size and forecast
- Market drivers
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- Figure 2: Consumer prices index: Annual % change, January-December 2014
- Companies, brands and innovations
- Market shares
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- Figure 3: The leading retailers: Online grocery market shares (%), 2013 and 2014
- Groceries/general merchandise split
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- Figure 4: The leading retailers’ estimated online breakdown, by groceries and general merchandise, 2013 and 2014
- The consumer
- Consumer usage
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- Figure 5: Usage of online grocery shopping, November 2014
- Where they shop online
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- Figure 6: Retailers used for the majority of grocery shopping, November 2014
- Disadvantages to online grocery shopping
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- Figure 7: Disadvantages to shopping for groceries online, November 2014
- Advantages to online grocery shopping
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- Figure 8: Advantages to shopping for groceries online, November 2014
- Attitudes towards online grocery shopping – Innovations and improvements
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- Figure 9: Agreement with statements relating to innovations or improvements, November 2014
- What we think
Issues and Insights
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- Where next as the online market matures?
- The facts
- The implications
- How can grocers improve the shopping experience?
- The facts
- The implications
- Delivery is a key battleground
- The facts
- The implications
- Click-and-collect – Integration at its best
- The facts
- The implications
Trend Application
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- Trend: Make it Mine
- Trend: Help Me Help Myself
- Mintel futures: Access Anything, Anywhere
Market Size and Forecast
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- Key points
- Growth continues to slow despite Morrisons entering the market
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- Figure 10: Online grocery sales (including VAT), 2009-19
- Online sales account for 5% of all grocery retailers’ sales
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- Figure 11: Online grocery sales as a % of all grocery retailers’ sector sales, 2009-19
- Looking further ahead
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- Figure 12: Online grocery sales (including VAT), at current and constant prices, 2009-19
- Segments
- Segment size and forecast: Major online grocers
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- Figure 13: Online grocery sales by major online grocers (including VAT), 2009-19
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- Figure 14: Online grocery sales by major online grocers (including VAT), at current and constant prices, 2009-19
- Segment size and forecast: Specialist and small online retailers
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- Figure 15: Online grocery sales by small or specialist online grocery retailers (including VAT), 2009-19
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- Figure 16: Major online grocers versus small or specialist online grocery retailers’ share of the total online grocery market, 2009-19
- Figure 17: Online grocery sales by small or specialist online grocery retailers (including VAT), at current and constant prices, 2009-19
- Mintel’s forecast methodology
Market Environment
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- Key points
- Broadband connections
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- Figure 18: UK household internet access, % of households with broadband access with at least one member aged 16-74, 2007-14
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- Figure 19: UK household internet access, % of households with broadband access with and without dependent children, 2014
- Digital trends – Shopping via device
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- Figure 20: Percentage of individuals who have shopped online in the last three months, by age, October 2014
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- Figure 21: Personal ownership of mobile phones, January 2012-October 2014
- Click-and-collect market
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- Figure 22: Last use of click-and-collect: Groceries versus non-groceries, June 2014.
- Consumer confidence and inflation
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- Figure 23: Consumer confidence levels, January 2013-January 2015
- CPI
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- Figure 24: UK: Consumer Prices Index: Annual % change, January-December 2014
- Retail prices index and average weekly earnings
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- Figure 25: Retail prices index and average weekly earnings: Annual % change, January 2009-November 2014
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Tesco launches shopping app for Google Glass
- App for pre-ordering deli, lunchmeats and subs
- Online recipe delivery service groceries
- Home delivery recipe boxes
- Sainsbury’s to the rescue
- Amazon’s ‘magic wand’ that automates the task of creating a shopping list
- Ocado’s shopping centre click-and-collect service
- Innovative grocery service at Helsinki Airport
Leading Retailers and Market Shares
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- Key points
- Market shares
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- Figure 26: Leading online grocery retailers’ estimated market shares (including VAT), 2012-14
- Online revenues: Strong growth from Waitrose
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- Figure 27: Leading online grocery retailers’ net internet revenues, 2012-14
- Online dominated by groceries
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- Figure 28: Leading online grocery retailers’ estimated total online revenues, by grocery and non-grocery, 2013 and 2014
- Contribution to total sales: Tesco nearing 10%
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- Figure 29: Leading online grocery retailers’ online sales as % of their total UK sales, 2013 and 2014
- Smaller online retailers: A small proportion of the market
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- Figure 30: Smaller online grocery retailers’ estimated market shares, 2012-14
- Coverage and fulfilment
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- Figure 31: Selected leading online grocers’ coverage and fulfilment centres, 2014
- Ramping up capabilities
- Click-and-collect – A growing concern
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- Figure 32: Major grocery retailers offering grocery click-and-collect services, 2014
- Tesco attracts the highest number of visitors
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- Figure 33: Leading food retail websites, ranked by total unique visitors, December 2014
The Consumer – Profiling Online Grocers’ Shoppers
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- Key points
- Online more popular with female consumers
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- Figure 34: Customer profiles of leading retailers, online and in-store, by gender, November 2014
- Younger online shoppers
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- Figure 35: Customer profiles of leading retailers, online and in-store, by age, November 2014
- Waitrose more popular with affluent consumers
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- Figure 36: Customer profiles of leading retailers, online and in-store, by socio-economic group, November 2014
- Morrisons and Asda more popular in the North
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- Figure 37: Customer profiles of leading retailers, online and in-store, by geographic region, November 2014
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- Figure 38: Customer profiles of leading retailers, online and in-store, by type of location, November 2014
The Consumer – Usage of Online Grocery Shopping
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- Key points
- What we asked
- Over 40% of consumers shop for groceries online
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- Figure 39: Usage of online grocery shopping, November 2014
- Participation dips in 2014
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- Figure 40: Proportion saying they do most or all of their grocery shopping online, 2011-14
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- Figure 41: Usage of online grocery shopping, December 2013 and November 2014
- Frequency of shopping by retailer used
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- Figure 42: Usage of online grocery shopping, by retailers used for majority of grocery shopping in-store and online, November 2014
- Younger people greatest enthusiasts
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- Figure 43: Usage of online grocery shopping, by average age and affluence, November 2014
- Market skewed to the family shopper
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- Figure 44: Usage of online grocery shopping, by family type, November 2014
- Regional
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- Figure 45: Usage of online grocery shopping, by region, November 2014
The Consumer – Where They Shop Online
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- Key points
- What we asked
- Tesco dominates the online arena
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- Figure 46: Retailers used for majority of grocery shopping, in-store versus online, November 2014
- Morrisons has a lot of catching up to do
- Trend data
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- Figure 47: Retailers used for majority of grocery shopping, online: Selected major retailers, 2012-14
- Online’s contribution to shopper numbers and sales
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- Figure 48: Online shopper numbers relative to total shopper numbers, and online grocery sales as % of total UK company sales, selected retailers, November 2014
- Online shoppers are younger
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- Figure 49: The consumer: Retailers used for majority of grocery shopping, in-store and online: Selected major retailers, by average age and affluence, November 2014
- Tesco online shoppers are from larger households
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- Figure 50: Retailers used for majority of grocery shopping, online: Selected major retailers, by size of household, November 2014
- North West and North East most important region for Asda
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- Figure 51: Retailers used for majority of grocery shopping, online: Selected major retailers, by region, November 2014
The Consumer – Disadvantages of Shopping Online
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- Key points
- What we asked
- Not choosing in person the greatest disadvantage
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- Figure 52: Disadvantages to shopping for groceries online, November 2014
- Delivery-related issues another drawback
- Substitutions
- Appetite for Aldi and Lidl to sell online
- Sell-by dates
- Encouraging more silver surfers to shop online for groceries
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- Figure 53: Disadvantages to shopping for groceries online, by age, November 2014
- ‘Group buying’ for students?
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- Figure 54: Disadvantages to shopping for groceries online, by employment status of main income earner in household, November 2014
The Consumer – Advantages of Shopping Online
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- Key points
- What we asked
- Saving effort, time and money seen as greatest benefits
- Avoiding the supermarket slog
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- Figure 55: Advantages to shopping for groceries online, November 2014
- Time is precious
- Financial benefits
- Supporting older people
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- Figure 56: Selected advantages to shopping for groceries online, by age, November 2014
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- Figure 57: Selected advantages to shopping for groceries online, by marital status and household size, November 2014
The Consumer – Attitudes towards Innovations and Improvements
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- Key points
- What we asked
- Fears over substitutions prevalent
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- Figure 58: Agreement with statements relating to innovations or improvements, November 2014
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- Figure 59: Agreement with statements relating to innovations or improvements, by retailers used for majority of grocery shopping in-store and online, November 2014
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- Figure 60: Attitudes towards innovation and improvements in online grocery retailing, by age and affluence, November 2014
- Delivery: Clarity and choice needed
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- Figure 61: Attitudes towards innovation and improvements in online grocery delivery, November 2014
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- Figure 62: Agreement with innovation and improvements in online grocery delivery, by type of location, November 2014
- Interest in click-and-collect via convenience stores
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- Figure 63: Attitudes towards innovation and improvements in online grocery click-and-collect, November 2014
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- Figure 64: Agreement with innovation and improvements in online grocery click-and-collect, by type of location, November 2014
- Website improvements: Searching for inspiration
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- Figure 65: Attitudes towards innovation and improvements in online grocery websites, November 2014
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- Figure 66: Agreement with innovation and improvements in online grocery websites, by age, November 2014
- An ability to dictate how they like their food
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- Figure 67: Attitudes towards innovation and improvements in online grocery products/services, November 2014
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- Figure 68: Agreement with innovation and improvements in online grocery products/services, by retailers used for the majority of shopping in-store and online, November 2014
The Consumer – CHAID analysis
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- Methodology
- Shoppers want lower delivery charges
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- Figure 69: Online grocery retailing – CHAID – Tree output, November 2014
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- Figure 70: Online grocery retailing – CHAID – Table output, November 2014
Amazon.co.uk
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- What we think
- UK grocery offer limited
- A poor start in own-brand grocery lines
- Company background
- Company performance
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- Figure 71: Amazon Europe: Group sales performance, excl. sales tax, 2009-14
- Retail offering
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- Figure 72: Number of products listed in Grocery on amazon.co.uk, by sub-category, February 2014 and February 2015
Asda Group
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- What we think
- Convenient delivery options
- Innovative solutions for busy shoppers
- See it, click it, buy it…‘shoppable’ online ads
- Company background
- Company performance
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- Figure 73: Asda Group Ltd: Group financial performance, 2010-14
- Figure 74: Asda Group Ltd: Estimated online grocery revenues, 2012-14
- Figure 75: Asda Group Ltd: Outlet data, 2010-14
- Retail offering
J. Sainsbury
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- What we think
- Launches its first store click-and-collect service
- Rollout of new grocery platform
- New shopping app
- Click and commute
- Launches Tu online
- Company background
- Company performance
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- Figure 76: J. Sainsbury: Group financial performance, 2010/11-2014/15
- Figure 77: J. Sainsbury: Estimated online grocery revenues, 2011/12-2014/15
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- Figure 78: J. Sainsbury: Outlet data, 2009/10-2014/15
- Retail offering
Ocado
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- What we think
- Leveraging its market-leading IP potential
- Extending its multichannel reach
- Expanding its non-food offer
- Improving the online experience
- Company background
- Company performance
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- Figure 79: Ocado Ltd: Group financial performance, 2009/10-2013/14
- Figure 80: Ocado Ltd: Key customer metrics, 2009/10-2013/14
- Retail offering
Tesco
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- What we think
- Profits overstatement
- Lewis’ turnaround
- Cutting back ranges to simplify shopping
- Leading the way online
- The future
- Company background (UK)
- Company performance
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- Figure 81: Tesco UK: Sales growth, 2014/15
- Figure 82: Tesco Plc: Group financial performance, 2009/10-2014/15
- Online grocery sales
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- Figure 83: Tesco UK: Estimated online grocery revenues, 2012/13-2014/15
- Profitability
- Performance by store format and channel
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- Figure 84: Like-for-like sales growth, by format and channel, Q1-Christmas 2014/15
- Outlets
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- Figure 85: Tesco UK: Outlet data, 2009/10-2013/14
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- Figure 86: Tesco sales breakdown, 2013/14
Wm Morrison Group
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- What we think
- Freshness and affordability
- Early setback, but company claims the service is ahead of its expectations
- A differentiator to distinguish itself from already-established online rivals
- Delivery coverage weakness
- Online price-checker tool and loyalty card
- Company background
- Company performance
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- Figure 87: Wm Morrison Group: Group financial performance, 2010/11-2014/15
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- Figure 88: Wm Morrison Group: Outlet data, 2010/11-2013/14
- Retail offering
Waitrose
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- What we think
- Changing the way people shop online for groceries
- Market-leading click-and-collect trial
- Specialist sites
- Company background
- Company performance
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- Figure 89: Waitrose Ltd: Group financial performance, 2010/11-2014/15
- Figure 90: Waitrose: Estimated online grocery revenues, 2011/12-2014/15
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- Figure 91: Waitrose Ltd: Outlet data, 2010/11-2014/15
- Retail offering
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