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IDDBA’s ‘What’s In Store 2015’: Online Grocery Shopping, Delivery Options On The Rise

IDDBA report cover

Online grocers are projected to account for 11 percent of food purchases by 2025, according to Nielsen and Booz and Co., a trend that illustrates the continued emergence of online and mobile channels where consumers can shop and schedule pick-up or delivery of their orders right from their internet-connected devices.

This and dozens of other consumer and food industry trends in supermarket fresh departments are detailed in “What’s in Store 2015,” the 29th edition of the annual trends publication of the Madison, Wisconsin-based International Dairy-Deli-Bakery Association (IDDBA). It’s composed of six comprehensive chapters: State of the Industry, Consumer Lifestyles, Bakery, Cheese, Dairy, and Deli.

Among the findings reported:

• The global online grocery market is projected to reach $100 billion by 2018, according to The Boston Consulting Group;

• Of the top 75 U.S. grocery retailers, just more than one-third offer some type of e-grocery service, according to Bill Bishop of Brick Meets Click;

• Click-and-collect and “drive” concepts, successfully implemented in European markets, is being tested by the grocery industry in the U.S. and Canada;

• Two out of five online shoppers want to receive real-time offers on their smartphones while they shop, and one-third would like to use their smartphones as an in-store navigation tool to help them locate products, according to Planet Retail; and

• Greater future use of augmented reality apps, where shoppers can use their smartphones to pinpoint exactly what they’re looking for or speak the name of a specific product in store and the app would show specifically where to find it, according to futurist Daniel Burrus.

As reported in IDDBA’s latest research, “Engaging the Evolving Shopper: Serving the New American Appetite,”  today’s shoppers live in an environment where the once-clear divisions between online and offline are increasingly blurred. From laptops to smartphones and beyond, shoppers have seamlessly integrated technology into their lives, fundamentally altering the way they engage with the world around them, including how and what they eat.

“As our independent research and industry trends reveal, online shopping options are becoming an increasingly important channel as consumers look for quick and convenient ways to purchase their groceries,” said Mary Kay O’Connor, VP of education at IDDBA. “Many of today’s online shopping programs are much more intuitive than in the past, providing seamless experiences that make it easier for shoppers to move away from their entrenched ‘brick-and-mortar’ shopping habits.”

The emerging online retail food channel provides new opportunities for stores to engage and connect with both current and prospective customers.

“Retailers must realize that shoppers want to engage with them in store, online and through mobile devices,” said Tim O’Connor, VP of RetailNet Group. Digital is the enabler for shoppers, not just a transaction portal.”

“What’s in Store 2015” is a 224-page trends report that details consumer and industry trends affecting the in-store dairy case, cheese case, bakery, deli and food service departments. Its 200-plus tables, developed in cooperation with leading industry firms and associations, include department sales, per capita consumption, consumer preferences, system 2, UPC and private label sales data. The cost is $99 for IDDBA members and $399 for nonmembers, plus shipping and handling.

About the author

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Kristen Cloud

A former newspaper editor and publisher, she once enjoyed leisurely perusing the grocery store aisles but, since having a baby in 2016, she is now an enthusiastic click-and-collect shopper.

Learn how independent grocers of all sizes can gain control over their conversation with their shoppers and personalize their shopper engagement by making data actionable as they reduce advertising costs and increase conversions.

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