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Between Amazon’s acquisition of Whole Foods, Walmart’s unlimited grocery delivery subscription service and Target's Shipt partnership, it’s clear retail giants are on a quest to capture the projected $29.7 billion online grocery market. However, despite these investments, our 2019 Future of Retail report found consumers overall just aren’t ready to purchase their groceries online. In fact, the majority of consumers (82%) bought groceries in a physical grocery store in the last year, while only 11% did so on Amazon.com.
Our research shows that consumers still prefer to go in store for groceries, and technology is low on their wish list from the brands they shop with. Instead, sustainability and brand reputation are playing a large role in driving consumers to choose one brand over another.
Curious to learn more? Here’s what our research reveals about the state of grocery and the implications for retailers:
For grocery retailers looking to attract and retain customers in this evolving industry, the report highlights a major opportunity for grocers to double down on the in-store experience and expand offerings outside of just shopping. For example, Whole Foods has wine and cheese flight nights, Kroger offers in-store sommeliers and Mariano’s has “Rockin’ Happy Hour” featuring jazz piano performances. By turning grocery shopping into a memorable experience, grocers can drive a deeper brand connection that keeps consumers coming back. Grocery retailers can also appeal to increased customer concern for sustainability by reevaluating packaging, stocking more local produce and selling reusable shopping bags.
To learn more about how consumer preferences are driving the grocery industry forward, download the full Walker Sands 2019 Future of Retail report here. You can also follow along with our 3-part blog series on the report (read part one here).