Online grocery must be delivered fast, study shows
Nearly half (48%) of online grocery shoppers say they are willing to pay for rapid delivery of their groceries to receive within one hour of placing their order, research from IGD reveals. The findings, discussed today at IGD's Digital Commerce Summit, highlight the significant role the online retail channel will play in meeting rising shopper expectations and changing behaviours in future.
There are some online shopper groups which show a higher interest than others:
- 54% of London shoppers are interested in this service, compared with those living in the Midlands, North (49%) and South of England (41%)
- 71% younger shoppers (18-24), compared with 18% of older shoppers (65+)
- 53% lower socio-demographic shoppers (C2DE) compared with 43% of more affluent shoppers (ABC1)
Vanessa Henry, Shopper Insight Manager at IGD, said:
"Much of shoppers' growing expectations around online retail is focused on the delivery aspect of their food and grocery shopping. One of the main reasons shoppers choose to shop online is because it's more convenient and quicker than shopping in-store, so as we see more competition between retailers for the quickest delivery times and most convenient services, the next generation of convenient shopper is starting to emerge."
As the fastest growing UK channel, increasing by 52% to 2023, IGD establishes online as one of the best-placed channels to meet needs such as these and help shoppers be more individual, healthy, experimental, socially conscious and optimise their time better. But with 47% of industry saying their teams as a whole don't or are only just starting to understand digital commerce, IGD's research identifies a key opportunity for businesses that invest in online.
Simon Mayhew, Online Retail Insight Manager at IGD said:
"This is more than just online – it's the future of retail. To deliver it as an industry we need to work together and upskill. Grocery retail is seeing an unprecedented amount of change, driven by these changing shopper expectations that can be met using transformative technologies. But only those companies that invest in the online channel to create a personalised, efficient, frictionless experience offer in line with these increasing shopper needs will get the results to succeed in future."
The online opportunity
As it stands, the majority of online grocery shoppers already expect a personalised experience - 61% of online grocery shoppers saying they would like it if online retailers personalised special offers based on what they buy regularly.
In addition to an individual shopping experience, online shoppers also show the greatest level of interest in new products compared to any other channel shoppers. Indeed, 80% of shoppers say they are open to trying new and different food and non-food products, services and experiences.
IGD's research also suggests online shopping and other digital platforms have the ability to support shoppers with making healthier choices. Notably, 45% of online grocery shoppers would like online retailers to make suggestions of healthier products when they are shopping online for their groceries, and a further 63% say they are interested in using website functionality which suggests healthier alternatives of products in their online basket.
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