Blog: Hannah AbdullaStores 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."

 

Sectors: Multichannel

BLOG

Serious Fraud Office launches Tesco probe

The UK's Serious Fraud Office has launched an investigation into the GBP263m (US$424.6m) black hole in Tesco's accounts, the retailer confirmed today (29 October)....

BLOG

US food industry takes aim at new nutrition app

A mobile app that claims to be the "most comprehensive food-rating database available" to US consumers has raised the hackles of the country's food manufacturers....

BLOG

Auchan strikes another purchasing deal with retail rival

Just weeks after announcing a purchasing tie-up in France with local rival Systeme U, Auchan has outlined an international agreement with Germany's Metro Group....

BLOG

Tesco profits plunge, chairman departs

Tesco has reported a massive 92% drop in first half profits as the accounting fiasco continues to widen....

just-food homepage



Forgot your password?