US online grocery sales to quadruple by 2023 – report
By Martin White - Oct 24th 2018, 11:05
Online grocery sales in the US have more than tripled between 2013 and 2018 and are set to quadruple between 2018 and 2023, according to a report by research agency Packaged Facts.
According to the report, growth in the market has accelerated since Amazon purchased Whole Foods in 2017, as retailers such as Walmart have raced to compete with Amazon in the online grocery space.
Over the last year, Walmart has acquired grocery delivery app Cornershop for $225 million, expanded the service areas of its Jet delivery service and partnered with Japanese retailer Rakuten to launch a new online grocery delivery service in the country.
Amazon and Walmart are currently the key players in the market, and together the companies account for nearly 28% of US online grocery sales.
Retailers and grocery delivery services such as Instacart, Kroger, FreshDirect, and Peapod are also identified as major participants in the online grocery space.
The report claims that increased smartphone usage by consumers, better website and mobile interfaces, and the expansion of the crowdsourced business models has accelerated the expansion of the market.
David Sprinkle, research director for Packaged Facts said: “Three key factors have created a perfect environment for the growth of the online grocery market in the US over the last five years."
“There’s been increased use of mobile phones and smartphones, interfaces for websites and mobile apps have improved, and there’s been a notable expansion of crowdsourced business models to shopping and delivery.”
Most of the market’s growth has actually occurred since 2016, as e-commerce platforms and conventional grocery stores expanded their service areas, and the report cited Instacart’s partnership with Aldi as a key example of this rapid expansion.
Instacart partnered with Aldi in August 2017 to deliver groceries in three cities, and by September 2018 the company announced the partnership would expand to all of its stores in the US.
Instacart is now valued at $7.6 billion after raising an additional $600 million in a funding found, and the company says the additional funds will allow it to expand further in North America.FoodBev
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.
Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.