Amid one of the most exciting and evolving moments in U.S. grocery retail history, everyone is asking how big online grocery will really get.
Grocery retailers are trying to understand the best strategies for tackling eCommerce, while manufacturers are trying to decide how to support the business. Essentially, it seems like there are a million questions and very few answers.
Fortunately, we have the benefit of a live case study that can inform our expectations about the future growth, size, scale, and innovation in online grocery. We simply need to look to Europe.
Kantar Retail believes that online grocery in the U.S. will follow a similar path to the one France took over the last decade with the Drive grocery fulfillment model. Shopper needs in both markets have an unsurprising overlap. French shoppers use the Drive model mainly for convenience and control — basic desires that are also top of mind for U.S. shoppers.
When examining current growth trends in the U.S. online grocery industry and comparing them to France, the U.S. grocery industry is looking at a true channel of business — one forecasted to reach $55 billion by 2021. If the U.S. is on track with France, you could be selling 10% of your business online by 2027. The critical question: Are you staffed and ready to tackle this new and critical channel?
To learn more, read our new insight report, Retail in Motion: What U.S. Retailers Can Learn From France. We examine leading online grocery models in the U.S. and match them against shopper needs (using Kantar Retail ShopperScape® data) to determine the learnings the U.S. grocery industry should take from France’s Drive model and the specific innovations the U.S. industry will require to capture this burgeoning opportunity.
For more information or if you have questions, contact:
Diana Sheehan, Director, Grocery Insights
Alvaro Morilla Villaneuva, European eCommerce Analyst