The Food Marketing Institute estimates that online grocery sales will reach $100 billion by 2025, taking up 20 percent of the grocery retail market. However, only 4.3 percent of industry sales come from online currently.
With Amazon's acquisition of Whole Foods last year, grocers have been stepping up ways to compete with the e-retailer. Big names like Target, Kroger and Walmart are all adding services with Instacart, Shipt, Yummy.com and more.
Even with all these attempts Amazon is still leading the pack with 18 percent share of the online grocery market. Forbes reports that in the first quarter of 2018, One Click Retail estimates Amazon's grocery sales grew by $200 million, nearly a 50 percent year-over-year increase.
However, the biggest opportunity still remains within brick-and-mortar stores. Stores are making the in-store shopping experience better for customers, trying to lure them in.
A study by Morning Consult revealed that consumers are resistant to moving to online shopping. Upwards of 65 percent of consumers say that they have no interest in buying food or beverages online, even if it means more convenience.
The survey found that only one-third of consumers had purchased food or products online. Early-adopters of online grocery shopping with men (38 percent), millennials (37 percent), GenXers (39 percent), urbanites (36 percent), middle-income (38 percent) and high-income shoppers (45 percent).
A majority (56 percent) of consumers that had bought groceries online said that they only done so a few times a year.
Forbes reports that grocery stores have a greater chance to entice shoppers to add more products to their carts that aren't already on their shopping list. According a study by Slickdeals.net, consumers spend upwards of $5,400 more annually on impulse purchases, and over 70 percent of consumers say that they are most likely to splurge on food when shopping.
Grocery stores clean up by enticing shoppers to spend more time in-store through attractive displays, strategic merchandising, sight, smell and taste experiences that can only be found in store.
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