TECHNOLOGY

Gallup survey: U.S. grocery shoppers buck online shopping trend — for now

BY Marianne Wilson

Shopping for groceries online has a long way to go before it catches on with the vast majority of U.S. consumers.

Nine percent of U.S. adults report that their household shop online for groceries at least once a month, including 4% who do it at least weekly, according to Gallup’s annual Consumption Habits survey. By contrast, almost all Americans say someone in their family shops for groceries in person at least once a month, with 83% going at least once a week.

This pattern — highly frequent grocery shopping occurring mostly in person — highlights the possibility for enormous growth that exists in the online grocery business, the survey reported. Amazon’s purchase of Whole Foods Market recently underscored this possibility, giving rise to speculation the online giant will use the grocery chain as a launching pad to expand its online operations into the food sector, according to the survey.

In the report, Gallup noted that while the vast majority of consumers still mostly do their grocery shopping in person, this may change, with experts asserting the traditional grocery business may be in a situation similar to that of department stores in recent years, with more retail space than the market can sustain.

“Traditional grocery stores may find their market share continuing to erode because of changing shopping patterns, particularly online shopping, and may be forced to maintain viability by cutting costs and reducing service, the report said.

Here are some key findings from the Gallup report:

• Fifteen percent of U.S. adults aged 18 to 29 say they purchase groceries online at least monthly, similar to the 12% among those 30 to 49 and 10% of those 50 to 64.

• A negligible 2% of those aged 65 and older shop for groceries online at least once a month. At the same time, however, age has little relationship to shopping in person at grocery stores, which is nearly universal across all age groups.

•Americans living in the eastern U.S. and those residing in cities are modestly more likely than their counterparts to go grocery shopping online.

• Working adults, perhaps because they have less time to shop, are almost twice as likely as those who are not working to do their grocery shopping online.

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Regional grocer anticipates Prime expansion

BY Deena M. Amato-McCoy

Sprouts Farmers Market doesn't plan on backing out of its partnership with Amazon any time soon.

Despite Amazon’s recent announcement to purchase of Whole Foods Market, Sprouts Farmers Market plans to continue its role as an Amazon Prime Now delivery partner. More so, the grocer expects the program to extend to more than half of its store network, according to Food Navigator-USA.

Shorter-term, Sprouts anticipates that 20 stores will be participating in the program by year’s end. As the company looks ahead, it anticipates that “one-third to 40% or 50% of stores” could be part of the program, the report said.

“The key point is that it helps us extend our trade area,” Amin Maredia, Sprouts CEO, said in the report.

Through the partnership, Amazon Prime members get free two-hour grocery delivery on orders over $20. Orders are fulfilled and delivered by Sprouts, the report said.

Sprouts operates more than 275 stores in 15 states.

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Report: Online giant operates 19 private-label brands

BY CSA STAFF

Amazon has a stronger foothold in the private-label market than some may realize.

Besides its AmazonBasics house line, which includes small items from iPhone chargers, to batteries, power strips, the online giant is selling products across a wide array of categories. Specifically, Amazon features approximately 19 company-owned brands that are exclusively available on Amazon, reported Quartz.

According to the report, the lines span men’s, women’s and children’s apparel, men’s shoes, cosmetics, tools, tech accessories, fresh and frozen food, lingerie and underwear, baby goods, consumer goods, linens, spare parts and furniture. However, only one brand — Pinzon, a bedsheets and towel brand — reveals that it’s an Amazon product. The only indication that these other “secret” brands might have an affiliation with Amazon is that they are “exclusively for Prime members.”

Amazon also has at least 10 more trademarks in the works — meaning other private label lines may be on the way. These include household goods, leather goods, baby products, car products, makeup, motor homes and music services, the report said.

According to Quartz’s list, there are also trademarks for handbags. Products under this pending trademark could coincide with Amazon’s new private label shoe and handbag line. Called The Fix, the line comprises trendy designs, including satin slides, colorful sneakers and mules, studded flats, and floral-embellished boots, among other looks.

To read more, click here.

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