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."
Food is a small part of PZ Cussons' portfolio, the UK-based FMCG group better known for brands including Imperial Leather soap and Charles Worthington shampoo. However, the company is a major olive oi...
Cargill's move to buy Archer Daniels Midland's chocolate business has cleared its last regulatory hurdle after clearance from the European Commission. But Brussels has asked Cargill to offload part of...
A panel advising the UK government on health and nutrition has today (17 July) called for the guidance on sugar intake to be halved, putting further scrutiny on parts of the industry. Should the recom...
- 10 things to learn: Campbell's plans for growth
- On the money: Unilever aims to get food growing
- Mead Johnson wrestles "irrational" Chinese market
- Campbell Soup Co.'s M&A plans should avoid fresh
- Will Bonduelle swoop for Green Giant?
- Hain Celestial buys plant-based food firm Mona
- UPDATE: Danone merges Dumex with Mengniu
- Danone eyes "return to growth" in fresh dairy
- Unilever sees growth in food, refreshments
- US House passes anti-GMO labelling bill