What: the reasons why customers still rely on stores for their online groceries.

Why it is important:  IADS members have experienced different approaches during the first lockdown wave: supermarket delivery at Manor, Call to deliver service at SM, new e-commerce approach at Sogo. In spite of the growing numbers of online grocery orders, this article argues that stores will remain at the centre of the game.

On the US market alone, online grocery is expected to represent 21,5% of total grocery sales by 2025, to € 215 bn. During summer 2020, it is reported that online grocery sales increased five to six times over previous year, however, it is estimated that only 2 to 4% of US shoppers went to a 100% online process, from ordering to receiving the delivery. The Takeoff Technology White Paper argues that customers favour curbside pickup or going in store to pick up the order, for two reasons: no waiting time (same day delivery) and no extra cost (as this option is usually charged).

It is therefore seen as a way to save time and money with the store seen as a node in both the supply chain network for additional services and in customers’ lives thanks to its proximity. Looking at what Amazon or Ali Baba are doing therefore suggest that not only stores are still central in the equation, but the real question is, instead of questioning their very existence, how to use technology to keep on proposing flexible convenience at competitive prices.

Post-pandemic:The Future of Online Grocery Is As Much Physical As It Is Digital