Online Grocery Shoppers Demand Seamless Omnichannel Experience and Convenience, Per New Acosta Group Study

55% of grocery shoppers are buying groceries online

JACKSONVILLE, Fla. , Sept. 12, 2023 /PRNewswire/ -- Acosta Group has released the results of its annual online grocery shopping study with its proprietary Shopper Community in advance of Groceryshop, gathering shopper attitudes and preferences and taking a deep dive into online grocery delivery. The study reflects the prevalence of omnichannel shopping and the online shopping fulfillment trends younger consumers are driving.

The company has also announced its key activities for Groceryshop 2023 in Las Vegas, Nev., including a Sept. 20 "Strategies for Omnichannel Fulfillment and Delivery" session with Walmart, DoorDash and Migros, referenced below.

ONLINE GROCERY SHOPPER BEHAVIORS

The Acosta Group study reflects a slight uptick in online grocery shopping over last year, with 55% of grocery shoppers buying groceries online at least some of the time. This upward trend is driven by more consumers who are shopping online regularly but still shopping mostly in-store.

"We learned in this year's study that frequent online grocery shoppers are up to 50% more likely to purchase perishables such as breads & pastries, dairy, produce and frozen for pick-up or delivery, which we attribute to a higher level of trust and familiarity with the fulfillment processes," said Kathy Risch, SVP Consumer Insights and Trends, Acosta Group.

When it comes to placing an order, 49% of online shoppers are starting at a retailer's website or app with their lists, and 85% (90% of higher income shoppers) are using digital coupons.

For grocery pickup shoppers, 80% are also going into the store when picking up their order, either because they forgot to purchase an item online or they prefer to personally select specific items. This is a 10% increase over last year, reflecting consumers' growing desire to have the in-store experience as well as the convenience of online shopping and pickup.

The retail grocery pickup channels most frequently shopped:

• 68% Mass merchandisers
• 55% Online-only retailers such as Amazon
• 55% Grocery
• 33% Club

"We've seen that post-pandemic, consumers have returned to in-store shopping, and they want a seamless omnichannel experience where all items online are available at the same price as in store, and all items in store are available for pickup and delivery," said Risch.  

A key takeaway for brands and retailers: online grocery shoppers, especially Millennials, are highly likely to purchase and try new items and are very likely to buy on impulse.

YOUNGER SHOPPERS INFORM ONLINE GROCERY FULFILLMENT   

As expected, convenience is highly valued when it comes to pickup and delivery fulfillment of online orders. Most online grocery shoppers (63%) will consistently use one type of fulfillment method.

Younger online grocery shoppers are heavy users of each – using delivery services at twice the rate of Boomers. The favored delivery providers are Instacart and Walmart+, followed by Prime, DoorDash and Uber Eats, with high satisfaction levels for these services.

• Store pickup: 60% of Millennials and 50% of Gen Z
• Delivery to home: 62% of Millennials and 65% of Gen Z

"Delivery shoppers often want the items fast;" said Risch, "38% are using delivery options of 3-hours or less, and men are far more willing to pay a higher fee for speed." For shoppers with limited flexibility who live in urban areas, have children, or work outside the home, the delivery timeframe window is critical.  

A key takeaway for brands and retailers: three in four Gen Z and Millennials are placing small orders for a single meal or recipe, reflecting a familiarity and comfort with the use and cost of delivery services.  

IMPLICATIONS FOR RETAILERS AND BRANDS

According to the Acosta Group study, 84% of online grocery shoppers report high satisfaction with the online grocery shopping experience. This is encouraging news as it's estimated that online grocery sales will nearly double to $342B by the end of 2027, according to Insider Intelligence-Digital Grocery Buyers 2023.

"Today's online grocery shoppers are younger and digitally savvy and are using online grocery shopping in new ways," said John Carroll, President, Acosta Group Digital Commerce and Advanced Analytics. "Their expectations are set for convenience and accuracy, as well as an integrated experience across the digital and physical shelf," Carroll continued. Future online grocery sales growth will come primarily from existing buyers vs. new buyers, so building trust through exceptional service, inspirational digital shelf content, and personalized offers will be key.

Shopper research was conducted July 7-13, 2023, with 1,308 U.S. primary online grocery shoppers, members of the company's proprietary Shopper Community. The Acosta Group Shopper Community is comprised of over 40,000 demographically diverse shoppers across the U.S. and is the company's proprietary community for survey engagement.  

GROCERYSHOP EVENTS

Strategies for Omnichannel Fulfillment and Delivery  
John Carroll, President, Acosta Group Digital Commerce and Advanced Analytics, will moderate a discussion about the technology investments, strategies and infrastructure needed to execute omnichannel fulfillment and delivery at Groceryshop on Wednesday, Sept. 20 at 4 pm PT.
Speakers include:
Jennifer McKeehan, SVP, End to End Delivery, Walmart U.S., Walmart
Fuad Hannon, VP, New Business Verticals, DoorDash
Mustafa Bartin, Retail CEO, Migros Turkey Retail

Technology Partners
Acosta Group will highlight its leading edge partnerships with Pensa Systems and Bazaarvoice at Groceryshop, Booth A514.

Acosta, an Acosta Group agency, has partnered with Pensa Systems, the industry leader in digital retail shelf management solutions. Pensa utilizes patented motion-based computer vision and AI to capture and then analyze hundreds of images of each individual product on a shelf, creating a 3D digital reconstruction of shelf inventory systems with a 98% accuracy rate. The partners' combined capabilities and solutions will accelerate sales and trade, optimize retail operations and further drive category ROI at the shelf for CPG manufacturers and retailers.

Bazaarvoice is the leading industry provider of product reviews and user-generated (UGC) solutions, which are key influencers for shopper purchasing decisions. "This partnership provides our clients a proprietary way to strengthen their user generated content on product pages across retailers like Walmart, Kroger, Instacart, and Target," said Carroll. Strategies include collecting ratings and reviews and sampling to build ratings and reviews volume, as well as tapping into user generated social content, creating a highly effective way to augment product pages.

ABOUT ACOSTA GROUP

Acosta Group is a collective of the most trusted retail, marketing and foodservice agencies empowering brands and retailers to win in the modern marketplace. By delivering transformative, commerce-focused solutions and more than 95 years of expertise, Acosta Group connects the company's partners with people at every point in the consumer journey.

Comprised of Acosta, CORE Foodservice, Mosaic, Premium Retail Services and ActionLink, Acosta Group understands and anticipates evolving consumer needs, fueling accelerated performance to connect tomorrow's commerce today. For more information, please visit Acosta Group on LinkedIn and at www.acosta.group.

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SOURCE Acosta Group