[NEW CHART] Grocery profit margins will plunge — here’s how grocers can win and retain shoppers

Fully understand e-commerce and online grocery with this chart.

NEW CHART & DATA: E-COMMERCE Online grocery is on the rise, and grocers need to reassess their strategies… Online grocery is growing steadily, and it's likely being driven by consumers' increasing confidence in buying grocery products without seeing them first. In fact, the grocery e-commerce market rose 35% year-over-year (YoY) to reach $24 billion in 2018, according to a report from Commonsense Robotics sent to Business Insider Intelligence. If this pace is maintained for the next several years, online grocery's share of overall grocery spend will more than triple from its current 3% to 11.6% in 2023, and will be just shy of 20% by 2025. Access Full Chart Data → * This chart was delivered to BI Intelligence's Ultimate E-Commerce Research Bundle subscribers. You can get access to this chart and other timely updates when you sign up today. This speedy growth in e-commerce grocery emphasizes the importance of addressing some critical flaws in grocers' current approaches to online grocery: Too much focus is being placed on curbside pickup despite consumers preferring same-day delivery. For retailers, curbside delivery is a far more beneficial way to fulfill online grocery orders than same- or next-day delivery. This is because the customer comes to the store, which removes last-mile delivery costs and enables the grocer to take advantage of its existing infrastructure. Unfortunately, consumers express a preference for home delivery by a sizable margin: 69% would choose home delivery compared with the 31% who would choose curbside pickup, according to a study by Nielsen cited by Commonsense Robotics. Furthermore, they vastly prefer same-day delivery over next-day delivery (76% against 24%, respectively). Despite this, of the 23 retailers surveyed by Deutsche Bank, only Amazon and Target said that same-day delivery was their primary focus, per Commonsense Robotics. Grocers need to buck the curbside pickup trend and focus on making sure their fulfillment systems are nimble enough to rapidly receive, handle, and deliver orders to customers within a day or, ideally, a few hours. Grocers' current online grocery strategies aren't profitable. Each online grocery order that's manually picked by a store employee is estimated to cause the retailer a loss of... Subscribe risk-free to view the full analysis Here's a summary of what you'll receive when you subscribe to the Ultimate E-Commerce Research Bundle today: 63 immediately accessible research reports and data-sets. At least 15 new E-Commerce reports over the next 12-months. Insightful newsletters and charts about everything important taking place within the e-commerce space. 14-day money back guarantee period so you can access all of the above risk-free! Other chart highlights you don't want to miss Consumers say these features will convince them to pick one e-tailer over another Comparison shopping is a key activity for online shoppers, and e-tailers should... Access Full Chart → Thriving retailers look to customers for ideas and pilots for execution Innovation is paramount in retail, especially since traditional retailers are... Access Full Chart → These are just a few of the charts made available to BI Intelligence subscribers. Subscribe to BI Intelligence's Ultimate E-Commerce Research Bundle today and you'll have instant access to 100s of charts like these, daily briefings in six key coverage areas and a members-only Research Center filled with insightful reports. Sign up Risk-Free Today Copyright © 2019 Business Insider, Inc. All rights reserved.

Email sent to: nguyenvu1187.love5@blogger.com Manage your email preferences   |   Unsubscribe Terms of Service   |   Privacy Policy © 2019 Insider Inc. 1 Liberty Plaza, New York, NY 10006