Blog: Stores putting up a good fight versus online
Hannah Abdulla | 23 June 2014
Traditional brick and mortar grocery channels can breathe a sigh of relief on news that they are still 'wanted' and are winning in terms of basket size.
According to a survey by eDigitalResearch, 29% of respondents found they made fewer impulse purchases online than they did in store while 7% said they purchased more "additional impulse buys" online than they did in store.
They do say don't do a supermarket shop on an empty stomach - how likely are you to buy foods you don't actually need when you're online? And the glitz of all the "rollback" and "price-cut" labels on supermarket shelves just don't have the same impact online.
But online's share in the FMCG market is growing. Kantar Worldpanel's most recent research reveals ecommerce will account for US$53bn of global FMCG sales by 2016 - an increase of US$17bn (47%) on the current $36bn.
But traditional stores don't need to worry about it taking over assures global shopper and retail director at Kantar Worldpanel Stephane Roger.
"One of the main concerns for FMCG players, is that ecommerce will take spend away from physical channels. However, this is also one of the biggest misconceptions. Having an online offer helps retailers to secure additional revenue rather than cannibalising existing spend in brick and mortar stores."
At present it appears both formats are winning for one reason or another: online for convenience and speed, and physical for the appeal, offers and the lack of a delivery charge.
As Brick Meets Click analyst Bill Bishop says: "We have yet to appreciate all the shopping occasions that make it easier to buy in store and similarly with online purchasing, such as picking up different deals."
US fans of British chocolate imports have taken to social media to vent their frustration after Hershey earlier this week reached a settlement with an importer to stop distributing British-made candy ...
Ads are commonly a bone of contention in this industry, with food manufacturers regularly coming under fire for what they believe is creative use of media. ...
Singapore-based agribusiness giant Wilmar International is to publish more information on how it sources its palm oil, a move welcomed by environmentalists....
- Why Post is increasing its exposure to cereal
- Lacklustre sales see Hershey turn to snacking
- Comment: Tread carefully over payment terms
- Food marketing firmly on UK political agenda
- Briefing: The risks and rewards of e-tail in China
- Hershey to acquire meat jerky firm Krave
- Up & Go breakfast drinks set for UK launch
- Hershey linked to takeover of jerky maker Krave
- Crisp maker Sibell acquires Spain's Celigueta
- Campbell aligns structure with growth objectives
- 10 Key Trends in Food, Health and Nutrition 2015
- Unilever - Strategy and SWOT Report
- The Sugar Backlash and its Effects on Global Consumer Markets
- Global Consumer Trend Framework: Understanding Attitudes and Behaviors that Influence Global Consumption Habits
- PepsiCo, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report