Shopping the Center of the Store Online - US  - March 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Most food and beverage shopping still happens in-store
Figure 1: Approach to food and beverage shopping, December 2018
Most center-store categories still shopped mainly in-store
Figure 2: Shopping methods by category – Top five online development, December 2018
Satisfaction with in-store experience is a barrier to online purchase
Figure 3: Barriers to purchasing packaged food and beverages online, December 2018
The opportunities
Experience with online shopping helps to break down barriers
Figure 4: Barriers to purchasing packaged food and beverages online, by approach to shopping, December 2018
Heaviest online shoppers look beyond discounts
Figure 5: Factors that would encourage more online shopping, by shopping approach, December 2018
Leveraging in-store experience to support online (and vice versa)
Figure 6: Attitudes toward online food and beverage shopping – Shopping enjoyment, by shopping method, December 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Online groceries growing but account for only a tiny portion of total
Broader ecommerce trends impact grocery sector
Millennials take on more grocery shopping responsibility
Americans are trying to eat healthier
MARKET PERSPECTIVE
Online groceries growing but account for only a tiny portion of total
Figure 7: Total online sales of food and drink*, at current prices, 2013-18
MARKET FACTORS 
Broader ecommerce trends impact grocery sector
Millennials take on more grocery shopping responsibility
Households with children on the decline
Most consumers report making an effort to eat healthy
Figure 8: Approaches to healthy eating, May 2018
Young adults far more likely to see barriers to healthy eating
Figure 9: Barriers to healthy eating, by gender and age, May 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Traditional retailers invest in ecommerce
Pursuing alternate online channels could help big CPGs build brands
WHAT’S HAPPENING?
Traditional retailers invest in ecommerce
Kroger sees return on investment in ecommerce
Leveraging Kroger’s direct marketing expertise
Figure 10: Kroger online shopping promotional email, February 2019
Walmart leverages strong store brands as it expands pickup and delivery
Figure 11: Walmart delivery promotional email featuring bulk-size products, February 2019
Figure 12: Walmart delivery promotional email facilitating reordering, February 2019
Figure 13: Amazon prime pantry promotional email, January 2019
WHAT’S NEXT?
Pursuing alternate online channels could help big CPGs build brands
As online grocery shopping grows, private label could play a bigger role
THE CONSUMER – WHAT YOU NEED TO KNOW 
Most food and beverage shopping still happens in-store
Online shoppers more likely to be motivated by a range of specific needs
Most center-store categories still shopped mainly in-store
Time savings motivate online packaged food and beverage purchases
Satisfaction with in-store experience is a barrier to online purchase
Amazon claims most online shoppers overall and most loyal shoppers
Online shoppers more likely to compare prices at the store level
List-making mainly an in-store shopping exercise
Heaviest online shoppers look beyond discounts
A streamlined process could bring more center-store purchases online
Leveraging in-store experience to support online (and vice versa)
ONLINE FOOD AND BEVERAGE SHOPPING OVERVIEW
Most food and beverage shopping still happens in-store
Figure 14: Approach to food and beverage shopping, December 2018
Younger adults more likely to shop for food and beverages online
Figure 15: Approach to food and beverage shopping, by age, December 2018
Nearly half of in-store shoppers express interest in online shopping
Figure 16: Interest in online food and beverage shopping among in-store shoppers, December 2018
Online shoppers more likely to be motivated by a range of specific needs
Figure 17: Food shopping priorities, by shopping approach, December 2018
Smart phones increasingly dominant in online grocery shopping
Figure 18: Devices used for online food and beverage shopping, December 2018
SHOPPING METHODS FOR CENTER-STORE CATEGORIES
Most center-store categories still shopped mainly in-store
Figure 19: Shopping methods by category, December 2018
Top five center-store categories in online development
Figure 20: Shopping methods by category – Top five online development, December 2018
Bottom five center-store categories in online development
Figure 21: Shopping methods by category – Bottom five online development, December 2018
WHY DO PEOPLE PURCHASE ONLINE?
Time savings motivate online packaged food and beverage purchases
Figure 22: Reasons for purchasing packaged food and beverages online, December 2018
Younger online shoppers more likely to appreciate a range of factors
Figure 23: Reasons for purchasing packaged food and beverages online, by age, December 2018
WHAT KEEPS SHOPPERS FROM BUYING ONLINE?
Satisfaction with in-store experience is a barrier to online purchase
Figure 24: Barriers to purchasing packaged food and beverages online, December 2018
Preference for the tangible aspects of in-store shopping cuts across age groups
Figure 25: Barriers to purchasing packaged food and beverages online, by age, December 2018
Experience with online shopping helps to break down barriers
Figure 26: Barriers to purchasing packaged food and beverages online, by approach to shopping, December 2018
WHERE DO PEOPLE BUY ONLINE?
Amazon claims most online shoppers overall and most loyal shoppers
Other online sellers trail in total and most-often shoppers
Figure 27: Retailers for online purchases of packaged food and beverages, December 2018
Younger shoppers more likely to shop around
Figure 28: Retailers for online purchases of packaged food and beverages, by age, December 2018
CENTER STORE SHOPPING BEHAVIORS – IN-STORE VS ONLINE
Online shoppers more likely to compare prices at the store level
List-making mainly an in-store shopping exercise
Label-reading less likely to happen online
Figure 29: Center-store shopping behaviors – in-store vs online, December 2018
Most frequent online shoppers less likely to compare prices
Figure 30: Center-store shopping behaviors – Online, by shopping approach, December 2018
FACTORS TO ENCOURAGE MORE ONLINE SHOPPING
Not surprisingly, most shoppers respond to reduced fees and discounts
Figure 31: Factors that would encourage more online shopping, December 2018
Heaviest online shoppers look beyond discounts
Figure 32: Factors that would encourage more online shopping, by shopping approach, December 2018
ATTITUDES TOWARD ONLINE FOOD AND BEVERAGE SHOPPING
Online shopping seen as best suited to larger stock-up trips
Figure 33: Attitudes toward online food and beverage shopping – Stock-up vs smaller trips, by shopping method, December 2018
A streamlined process could bring more center-store purchases online
Figure 34: Attitudes toward online food and beverage shopping, by shopping method, December 2018
Leveraging in-store experience to support online (and vice versa)
Figure 35: Attitudes toward online food and beverage shopping – Shopping enjoyment, by shopping method, December 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms