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Over the next five years, grocery e-commerce is projected to grow at a CAGR of 9.1%... but is that growth a good thing for grocers? For many, the answer is NO. Legacy systems and processes are standing in the way of profitability.  Find out what steps grocers can take to transform their digital offer and reposition digital channels as a growth engine 👉 https://bit.ly/3WGozWM #GroceryFulfillment #AdaptToCompete

🚀 Online Grocery Profitability Challenges Today, I want to share insights on a topic that’s been top of mind after engaging with several managers selling tech services to supermarkets: the profitability challenges in the online grocery sector. Despite a surge in online shopping since the pandemic, retailers are grappling with a 125% increase in labor needs compared to traditional shopping. This makes profitability a significant hurdle, even as the market is projected to grow to 8.3% by 2028. What are your thoughts on the future of online grocery? You can the full analysis here: https://lnkd.in/eggJmMqP #eCommerce #GroceryRetail #Innovation

Industry Insight Digital Grocery Sales Hit $31B in Q1 Digital grocery sales were up 5.2% year-over-year in the first quarter of 2024, reaching $31.4 billion, according to Grocery Doppio’s State of Digital Grocery Performance Scorecard. The average digital grocery basket size climbed to $177.20, up 6.1% compared to a year ago. Nearly 90% of grocers remain dissatisfied with eCommerce profitability. The cost of picking groceries and fulfilling the orders was identified by 83% of grocers as the biggest challenge to increasing their profitability. That’s followed by the cost of delivery and logistics at 73%. Grocers added that reducing third-party dependence (77%) is the second biggest path to improving eCommerce profits. Additional strategies include renegotiating logistics/delivery costs, monetizing retail media, increasing private label products and introducing membership models. #grocery #grocers #ecommerce #digital #fulfillment #delivery #logistics

Despite challenges, e-commerce grocery sales navigated fluctuations, with pickup remaining resilient. Dive into the data and explore key takeaways for the industry. #Ecommerce #GroceryTrends #RetailInsights #DigitalCommerce Source - retailbrew

Did you know that grocery is one of the fastest-growing areas of e-commerce? The demand for essential goods has fueled this growth in recent years. By 2026, grocery is expected to become the top e-commerce category, outpacing all other major categories. 🚚🛍️ #grocery #ecommerce #onlinegrocery #onlinesupermarket https://hubs.ly/Q02m-BXF0

Has the growth of quick commerce platforms impacted impulse buying of products in retail stores? Grocery buying today is very different as quick commerce platforms provide the highest level of convenience to consumers by delivering a wide range of products within 10 minutes. While ordering on these platforms, consumers only search for products that they require or have planned to purchase and add them to the cart accordingly. This way the scope for an impulse purchase is almost eliminated when compared to offline grocery shopping, where earlier consumers would ideally notice new brands, purchase products at the billing counters, and get influenced by other promotional activities carefully designed by the retailers. As consumers, it’s a great thing because eventually, we will spend less and exactly as planned. However, from a manufacturer's lens (think of candies, chocolates, snacks, or new product introductions), this surely is a problem as it eliminates the additional incremental sales contribution due to impulse buying. What do you think about the effect of quick commerce on impulse consumer purchases? What strategy can manufacturers apply to cover up for the lost incremental sales? Photo Credits - Economic Times #ConsumerBehavior #ShopperInsights #Retail #FCMG #ConsumerInsights #CPG #MarketResearch #Grocery

Tracking eGrocery Trends: The U.S. online grocery market finished 2023 with $95.8 billion in total sales, down 1.2% compared to 2022, according to the annualized results from the monthly Brick Meets Click/Mercatus Grocery Shopper Survey. A decline in order frequency by online grocery shoppers was the primary factor driving the lower sales in 2023. Key Insights: Across the U.S. eGrocery market, price-value formats like Mass and Hard Discount experienced strong expansion in their respective MAU bases during 2023; in contrast, the Supermarket format experienced a contraction. Thanks to Mark Fairhurst and the team at Mercatus Technologies Inc. for their support of this ongoing shopper research. #ecommerce #onlinegrocery #groceryretail #groceryindustry #onlineshopping #pickup #delivery

Concerns over online grocery’s decline are overblown. We are asked regularly if the US online grocery market is truly still a growth opportunity. The answer: absolutely, particularly for grocers who’ve refined their customer offering and operating model. 📈 The online channel will grow at 2.5X the rate of stores in 2024, despite a slowdown from pandemic era hyper growth of 4-5X brick and mortar. Retailers who remain focused on the channel are seeing strong growth. Kroger’s results last week illustrate the potential. Don’t confuse the closing of Ocado/spoke facilities - same day delivery continues to grow with 24% YoY growth in 2023. Regional grocers who take their foot off the gas now will lose share and need to hustle harder in future years to win back the occasion or the customer they lose. Three ‘no regret’ steps all US grocers should take in 2024: 🏆 Ensure your offering is positioned to win the key digital grocery occasions: The same day ‘fill in’ trip is the fastest growing segment in online grocery in 2024; are you best positioned to serve that occasion? 💯 Ensure your fulfillment model is fast and cost effective: Your stores should be picking at 100+ UPH during slow periods, 135+ during peak 📲 Ensure your supplier partners are all-in on your digital growth: Suppliers should be propelling your category performance with unique digital values and heavier promotional support during key digital windows This is not the time to walk away from online grocery; 2024 will be the year where leaders lean in and take share. #TOMORROW #omnichannel #digitalretail #onlinegrocery #RetailersGuidingRetailers

Does #ecommerce channel profitability remain highest in brick-and-mortar stores? What do you think? Is this still the case a few years later? Shipping and warehousing costs are higher online due to several factors (by MCKinsey): x Choppy ordering patterns make forecasting more difficult. x Lower order quantities, leading to mixed-pallet configurations and less-than-truckload deliveries. x Higher penalties from online retailers for non-compliance with specific guidelines. x The need to reconfigure or repackage products for e-commerce, particularly in the food category. *Couldn't find newer research on this topic. Source: MCKinsey, High growth, low profit: The e-commerce dilemma for CPG companies

Exciting news in the digital grocery realm! 🎉 In April, online grocery sales hit a whopping $8.5 billion, marking a 4% increase from last year. 📈 But that's not all—pickup, delivery, AND ship-to-home channels all saw growth, with mass retailers like Walmart leading the charge! 🚀 Let's break it down: 🔹 Pickup orders dominated with 43% of sales. 🔹 Delivery services claimed 38% of the market. 🔹 Ship-to-home orders surged, boasting a remarkable 10% sales increase! But what does this mean for traditional supermarkets? 🛒 Well, they're facing some stiff competition as mass retailers continue to expand their digital footprint. 💥 Are you part of this digital grocery revolution? Share your thoughts below! 👇 #EcommerceGrowth #DigitalGrocery #RetailRevolution #EngageAndDiscuss #BrickMeetsClick #Mercatus