Disruptions in how customers shop and buy food are a constant in today’s fast-changing markets; grocery shopping is no exception. Approximately one-fifth of all grocery spending, a total of $100B, is expected to come from online shoppers by 2025. In the U.S., online grocery sales amounted to $14.2B in 2017 and are expected to rise to nearly $30B by 2021. Not only are shoppers buying groceries online, but they’re also searching for the easiest way to do it. Dramatic figures such as these emphasize the change sweeping the industry and the necessity of supermarkets and grocery stores to enter the digital world, if they haven’t already, to provide consumers with the perfect online shopping experience.
There are many benefits to online grocery shopping. It’s convenient, it saves time, no last-minute impulse buys, and there are many sales exclusively for online shoppers. With the retail world going digital, consumers are becoming more comfortable ordering groceries online.
As eCommerce grows, it’s in retailers’ best interests to test innovative ways to use digital-shopping channels to provide consumers with more options and make the online grocery shopping experience as effortless and seamless as possible. A variety of companies from brick-and-mortar stores to online retail offer Americans the opportunity of home delivery or store pickup for grocery orders. Some supermarket chains offer online grocery shopping and delivery services to compete with major online retailers, such as Amazon, while other supermarkets are outsourcing their delivery operations through third party logistics providers.
Expanding delivery options is essential for grocery retailers’ interested in maintaining a competitive edge and surviving the changing retail landscape. According to data from Accenture Consulting, only 52% of shoppers reported having their expectations met by current delivery options provided by retailers.
The challenge, and the opportunity, for retailers, is to expand delivery options to include a variety of fulfillment partners that allow customers the flexibility to choose the method that best fits their lifestyle. One example of a grocery retailer increasing their digital initiatives and making shopping online easier is Wal-Mart. To make its in-store pickup process faster and more efficient, Wal-Mart has created giant self-serve kiosk towers. Wal-Mart also filed a U.S. patent for floating warehouses that can make deliveries using drones. The retailer also plans to add 1,000 online grocery pickup locations at its U.S stores in fiscal 2019.
Investing in an efficient last mile delivery option is a must to guarantee grocery freshness. Partnering with a last-mile logistics and delivery provider like Bringoz ensures that groceries arrive at their destination in a timely and efficient manner. Managing the delivery process optimally – making sure deliveries arrive on time and at the same time – keeps the operating costs as low as possible and is a technological challenge. Bringoz provides these capabilities and allows retailers to focus on their core business – making sure that their customers receive the quality and delivery options that they demand.