FMI: Big surge in online grocery shopping
The majority of shoppers are expected to be buying some of their groceries online within five years.
Seventy percent of consumers will be grocery shopping online by 2024, according to a report from the Food Marketing Institute and Nielsen.
Spending is estimated to hit $100 billion — the equivalent to every U.S. household spending $850 online for food and beverage annually.
According to the “Digitally Engaged Food Shopper” study, omnichannel shopping has passed the tipping point, putting online grocery shopping on an accelerated path to industry saturation. Between the pace of change, adoption, and the pervasiveness of online engagement, the timeline to hit $100 billion has been cut by as much as half.
Food and beverage manufacturers and brick-and-mortar retailers need to do to ready themselves for the rising digital grocery landscape, according to the study.
“People, process and technology are the trifecta for a true omnichan-nel collaboration model,” said FMI chief collaboration officer Mark Baum
The report advised retailers to adopt the following measures for omnichannel success:
• Align organizational structures for omnichannel success: Integrate digital offerings in parallel with brick-and-mortar operations.
• Address discrepant data sets: Scrub master data files for discrepancies; strength in data and accuracy is a critical component to successfully support online sale efforts.
• Integrate forecasts to increase operational efficiencies: Integrate online and offline forecasting so the right amount of inventory is available to meet orders through either channel.
• Optimize shopper insights: Bring retailer and manufacturer shopper information together into a single, comprehensive view of customer insights.
• Improve marketing and promotions: Optimize the management of omnichannel marketing and promotions.
• Merge digital and in-store shelf capabilities: Manage the physical shelf and its digital counterpart to create a seamless shopping experience, where consumers see the same information both on or offline.
“The grocery industry is currently in the age of digital experimentation, where the roadmap on how to navigate and achieve real and profitable growth continues to evolve,” said Chris Morley, U.S. president FMCG and retail, Nielsen. “While analytics will continue to be critical for retailers and manufacturers to understand the digitally engaged food shopper on a deeper level, a collaborative approach to balancing physical and digital sales strategies is the key to unlocking omnichannel success.”
Seventy percent of consumers will be grocery shopping online by 2024, according to a report from the Food Marketing Institute and Nielsen.
Spending is estimated to hit $100 billion — the equivalent to every U.S. household spending $850 online for food and beverage annually.
According to the “Digitally Engaged Food Shopper” study, omnichannel shopping has passed the tipping point, putting online grocery shopping on an accelerated path to industry saturation. Between the pace of change, adoption, and the pervasiveness of online engagement, the timeline to hit $100 billion has been cut by as much as half.
Food and beverage manufacturers and brick-and-mortar retailers need to do to ready themselves for the rising digital grocery landscape, according to the study.
“People, process and technology are the trifecta for a true omnichan-nel collaboration model,” said FMI chief collaboration officer Mark Baum
The report advised retailers to adopt the following measures for omnichannel success:
• Align organizational structures for omnichannel success: Integrate digital offerings in parallel with brick-and-mortar operations.
• Address discrepant data sets: Scrub master data files for discrepancies; strength in data and accuracy is a critical component to successfully support online sale efforts.
• Integrate forecasts to increase operational efficiencies: Integrate online and offline forecasting so the right amount of inventory is available to meet orders through either channel.
• Optimize shopper insights: Bring retailer and manufacturer shopper information together into a single, comprehensive view of customer insights.
• Improve marketing and promotions: Optimize the management of omnichannel marketing and promotions.
• Merge digital and in-store shelf capabilities: Manage the physical shelf and its digital counterpart to create a seamless shopping experience, where consumers see the same information both on or offline.
“The grocery industry is currently in the age of digital experimentation, where the roadmap on how to navigate and achieve real and profitable growth continues to evolve,” said Chris Morley, U.S. president FMCG and retail, Nielsen. “While analytics will continue to be critical for retailers and manufacturers to understand the digitally engaged food shopper on a deeper level, a collaborative approach to balancing physical and digital sales strategies is the key to unlocking omnichannel success.”