There is Still Room for Brick-and-Mortar Grocers Even with Amazon’s Announcement to Buy Whole Foods

Majority of U.S. consumers aren’t shopping online for groceries and point out barriers To adoption

Chicago, June 20, 2017 — Grocery e-commerce has a lot of headroom for growth with only seven percent of U.S. consumers shopping online for groceries in the last month, reports The NPD Group, a leading global information company. Consumers who are lapsed from grocery shopping online or have never shopped for online groceries point out a number of barriers to their adoption of online grocery shopping, the top reason being that they want to pick out their own fresh items.  Amazon’s recently announced purchase of Whole Foods will help overcome this barrier for Amazon Prime members (52 percent of online grocery shoppers are Amazon Prime members), active online shoppers, like young adults and men, and urban consumers; but there remains a large sector of the population that will continue to be served by brick-and-mortar grocery stores.     

NPD predicts that online grocery shopping will grow at a faster rate than the early online pioneers as consumers have already experienced the convenience of online shopping.  In fact, 20 million consumers who are current, lapsed, or new to online grocery shopping plan to increase their virtual shopping for foods and beverages over the next six months, according to the NPD study, The Virtual Grocery Store. However, in addition to selecting their own fresh foods, many consumers simply like the experience of grocery shopping in a brick-and-mortar store saying that walking the store reminds them of what else they need or they like to see what’s new. Other barriers are the higher costs associated with grocery shopping online, like delivery or membership fees, and needing to wait for the delivery — which Amazon’s purchase of Whole Foods could change.

“Brick-and-mortar stores aren’t dead, they will just need to step up their game.  There will continue to be a large percentage of the population who will prefer to shop at brick-and-mortar grocers,” says Darren Seifer, NPD food and beverage industry analyst. “Brick-and- mortar food retailers should market the unique consumer needs they meet that online grocers aren’t currently offering, experience being a key one.  At the same time, they need to keep up with the times and leverage digital ordering via their own click-and-collect programs as well as partnering with third parties for delivery in order to expand their offerings.”


Related Press Releases

What’s Life Stage Versus Generational Behavior When It Comes to Dinner Planning? Millennials Are Showing Us The Difference.
What’s Life Stage Versus Generational Behavior When It Comes to Dinner Planning? Millennials Are Showing Us The Difference.

It’s a common oversight not to age generations or recognize how life stage can impact behavior. To understand the difference between generational and life stage behaviors enables food companies and foodservice operators to develop products and marketing messages that are more relevant to their target consumer audiences.

U.S. Consumers Are Increasingly Eating and Preparing Their Meals At Home Often With The Help Of Foodservice
U.S. Consumers Are Increasingly Eating and Preparing Their Meals At Home Often With The Help Of Foodservice

Four out of five meals in the US are prepared at home, more at home meals than a decade ago, says The NPD Group. Consumers do look for shortcuts, close to half of dinners bought from a restaurant are eaten at home and a growing number of in-home meals are a blend of dishes prepared and items bought from a foodservice.

Amazon Whole Foods First Year As A Duo Accelerates Consumers Online Migration
Amazon Whole Foods First Year As A Duo Accelerates Consumers Online Migration

It has been a year since Amazon announced it was buying Whole Foods, and all of the focus and incentives for grocery shopping online offered by national grocery chains in response to the Amazon Whole Foods acquisition accelerated consumers’ adoption of online grocery shopping, reports The NPD Group, a leading global information company.

The Future of Dinner in America Will Reflect Past Traditions But With Modern Twists
The Future of Dinner in America Will Reflect Past Traditions But With Modern Twists

The tradition of eating dinner at home together has stood the test of time and will continue over the next five years but with a lot of modern twists, finds the recently released Future of Dinner study by The NPD Group, a leading global information company.


Press Contact

Kim McLynn
847-692-1781
kim.mclynn@npd.com

@npdfood

The NPD Group, Inc.
900 West Shore Road
Port Washington, NY 11050

Want more?

Complete this form to hear from NPD.


Newsletter

Subscribe and get key market trends and insights relevant to your industry each month.

We will not sell your information. View privacy notice.

Follow Us

© The NPD Group, Inc.