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UK Grocery Sector Failing To Capitalise Online: Bridgethorne

Published on Apr 25 2017 12:48 PM in Features tagged: UK / Internet / Shopper Behaviour

UK Grocery Sector Failing To Capitalise Online: Bridgethorne

New research published by bank card industry representatives UK Cards Association suggests that online grocery retailers and brands are not achieving their fair share of internet shopping versus other sectors.

This should be something of a wake-up call to FMCG brands and retailers if they want to make online an even more lucrative channel and attractive proposition for shoppers, according to shopper insight business, Bridgethorne.

The research, which showed that although some 41% of in-store card purchases were on food and drink, only 7% took place via the Internet. This was despite the same research showing that online shoppers in the UK spend more per household than consumers in any other country.

The entertainment sector, including cinema and concert tickets, takeaway orders and music downloads, accounted for one in four online card purchases in the UK, whilst more than a quarter (27%) of what was spent online was in financial services, including insurance renewals and online banking.

Opportunity To Capitalise

The importance of capitalising on the online grocery opportunity is highlighted on in a 2016 report from InternetRetailing that reported 49% of shoppers using click-and-collect more now than they did a year previously, and from Mintel in April 2016, which showed that 29% of UK online grocery shoppers were shopping for their groceries more online than 12 months earlier.

The InternetRetailing report forecasted online sales would grow to reach £15 billion by 2020, whilst acknowledging that online grocery shopping accounted for just 6% of total grocery sector sales in 2015, albeit up from 3% in 2010.

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In its report, Mintel said that just under half (48%) of Britons were current online grocery shoppers, with 11% doing all of their grocery shopping online, with a further 12% doing most of their grocery shopping online.

“Bridgethorne’s own shopper research has already shown that the pre-family and younger families are clearly more disposed to eCommerce, which is something likely to underpin accelerated online activity as that generation gets older and new ones emerge,” explained Nick Kirby, Bridgethorne’s shopper, ecommerce & analytics director.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Gavin Ryan. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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