Global Online grocery shopping: The top retailers & trends

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Global Online Grocery Shopping: The Top Retailers and Trends Leah Kinthaert 2014

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Global Online Grocery Presentation. Includes a chart showing the top Global grocery retailers (Walmart, Target, Kroger, Swarz, Tesco, Carrefour, Metro, Leclerc, Ahold, Auchan, Rewe and Sainsbury's) and their share of the online grocery market. Includes trends and topics such as reasons for the imminent spread of online grocery in places such as China, India, Europe, North America and South America.

Transcript of Global Online grocery shopping: The top retailers & trends

Page 1: Global Online grocery shopping: The top retailers & trends

Global Online Grocery Shopping: The Top Retailers and Trends

Leah Kinthaert 2014

Page 2: Global Online grocery shopping: The top retailers & trends

Boston Consulting Group says that online grocery sales will grow to $100 Billion by 2018

Only Walmart, Tesco, Costco, and Sainsbury’s have released their annual online grocery sales figures. Additionally, Ahold has released their first quarter earnings for 2014.

Which grocery retailer is selling the most online?

I looked at Supermarket News’ Top 25 Global Food Retailers to try and get a sense of just how much grocery retailers are making with online sales. 15 million new ones from the US.

Global Online Grocery is now $36 billion

2014 Leah Kinthaert

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2014 Leah Kinthaert

If 3% of all grocery sales are online, then…

Conservative estimates say that 1-3% of all grocery sales are online.

Using the 3% figure, I used 2013 revenue, (when available) to estimate online grocery sales for the 25 top grocery retailers in the world.

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Using the Conservative 3% Estimate, Online Sales for the top 25 Grocers Totals $32 billion

Boston Consulting Group says total online grocery sales were $36 billion in 2013. That means two things:

$4 billion of grocery sales are coming from retailers who are not primarily grocers (Amazon?) and the 3% estimate may really be just that – conservative!

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Which of the top 25 Global Grocery Retailers Sell the Most

Online?

2013 Online Grocery Sales

Kroger is second, with strong numbers from Shwarz, Tesco, Carrefour, Metro, Leclerc, Ahold, Auchan, Rewe and Sainsbury’s.

Walmart and Target tie at the

top.

Walmart15% Tesco

7%

Carrefour7%

Costco3%

Kroger9%

Shwarz7%

Metro6%

Target14%AEON

0%

Rewe4%

Seven & I0%

Auchan6%

Edeka1%

Casino0%

Woolworths1%

Intermarche0%

Leclerc7%

Safeway1% Ahold

6%

Sainsbury's5%

Estimated Online Grocery Sales

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Online Grocery Retail is Inevitable

2014 Leah Kinthaert

As emerging countries populations’ move into the middle class, there is evidence that in some developing regions of the world, the “supermarket” that westerners are familiar with may never exist. Instead those who once shopped at rural, small shops will shift their shopping to online. Access to global products via mobile has revolutionized tastes and created new needs.

Skipping a step“Social” is not in person anymore

Whether a working mom or stay at home mom, a trip to the grocery store with a child - and this transcends cultures and countries - is never a “fun” outing. Unless something radical happens and men begin to do the grocery shopping worldwide, once online grocery shopping becomes available to moms, it will take hold and there’s no looking back.

Think about it

Many naysayers spout that shoppers will not want to miss the social experience of in-store shopping. They are missing the point that socializing has become predominantly an online experience.

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Global Online Grocery Landscape: by CountryFrom A.T. Kearney's The 2013 Global Retail E-Commerce Index™

• ChinaWith a population of 1.36 billion, 517 million Internet users, and 220 million online shoppers, China's $64 billion online retail market will expand over the next five years to $271 billion. This expansion is due to infrastruc ture improvements, increased Internet access, and a rising middle class. Chinese shoppers purchase online because of price, promotions, and broad assortments. 54% percent of online shoppers made more than 20 purchases in 2012, up from 41% in 2011. Sales will increase as more rural Chinese gain Internet access and infrastructure gaps are addressed. Food and drink plus beauty and personal care items account for about 7% of all online sales right now in China.

• JapanJapan has 100 million Internet users, 75 million online buyers, and $52 billion in online sales. Japan's has an advanced financial infrastructure which allows consumers to make online purchases efficiently, additionally it has superior logistical infrastructure which enables same-day delivery for many online orders. Japan's online retail market is expected to reach $80 billion over the next 5 years. Japan has the ultimate “connected consumer” many with more than one mobile device, connecting with their computers, cell phones, and tablets. Food and drink plus beauty and personal care items account for about 18% of all online sales right now in Japan.

USUnited States has the world's largest online retail market ($177 billion today and expected to nearly double by 2017), an advanced infrastructure, and a rich, large, and dynamic consumer base accustomed to buying online. Almost 250 million Americans use the Web, and 177 million routinely purchase goods online. Sixty-one percent of American mobile phone subscriptions are for smartphones, and 34 percent own a tablet. Food and drink plus beauty and personal care items account for about 5% of all online sales right now in the US.

• BrazilAt $11 billion in size, Brazil’s eCommerce market is projected to grow at a compound annual growth rate of 20 percent over the next 5 years. The country has 90 million Internet users, 57% of them buy online. Only 45 percent of Brazilians have Internet access, but as rural customers get online, sales will rise. The online retail market is expected to be $28 billion by 2017. Food and drink plus beauty and personal care items account for about 7% of all online sales right now in Brazil.

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Global Online Grocery Landscape: by CountryFrom A.T. Kearney's The 2013 Global Retail E-Commerce Index™

• UK82% of the UK is on the internet, 80% of them buy products online. Of online buyers, 45% use. The UK's online retail market is worth $48 billion and expected to grow to $73 billion by 2017. Food and drink plus beauty and personal care items account for about 16% of all online sales right now in the UK.

• GermanyGermany has a $27 billion online retail market is becoming a global force as its well-connected population 83% of Germans are online and 77% buy online. Their online retail market is expected to grow 12% yearly through 2017—faster than any other country in Western Europe. Food and drink plus beauty and personal care items account for about 4% of all online sales right now in Germany.

• RussiaRussia's has a fast-growing online market of $10 billion annually. The compound annual growth rate is 18% which is attracting both both domestic and foreign retailers. They have Europe's largest online population with about 70 million users and 33 million online shoppers. For Russians outside of the bigger cities, online retail offers access to brand-name goods that local shops do not have. Food and drink plus beauty and personal care items account for about 6% of all online sales right now in Russia.

• FranceFrance has a $26 billion online retail market driven by experienced online shoppers. With 50 million Internet and 35 million routine online buyers, it is predicted they will spend more than $36 billion online by 2017. 15% of French households buy groceries online and select the drive-through pickup option, known as the "Drive Model," to have their purchases loaded into cars at a store or warehouse. Today, the Drive Model represents 2.8% of France's overall grocery market and it is expected to grow to 20% by 2020

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Global Online Grocery

2014 Leah Kinthaert

Online grocery retailing is still in a nascent phase across most of the world, but as convenience and accessibility to consumers grow, there is no holding it back.

Still in Nascent Phase

South Korea is a great example to see where online grocery is going, as close to 80% of grocery shoppers there regularly purchased grocery products online in 2012, and the frequency of purchasing increased to nine times a month from seven times a month in 2011. (Nielsen)

80% of South Koreans purchase groceries online

Most of the major grocery retailers see opportunity in online retailing and are investing in online strategies. Consequently, grocery retailers’ digital footprint will expand in the year ahead as they identify new ways to engage and sell profitably through online channels.

Digital Footprint to Expand in 2014

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2014 Leah Kinthaert

Overall eCommerce Sales by Category

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“Brands absolutely need an online retail presence” John Fang, China Market Research Group

Fang says: “Brands absolutely need an online retail presence to reach their customers where they are looking to buy.  And increasingly, retailers need to be accessible on mobile devices, as purchases are starting to shift from home computers to phones and tablets.”

A new study from Telecom Watch shows that rural India, for example, has more mobile users than urban India. Students and housewives lead the pack in usage. Mobile phones give female consumers and rural residents unprecedented access to new products, in many cases online is the ONLY place where certain products are readily available.

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3 Billion internet users

2/3 of these users are from the developing world. People from developing countries make up for more than 90% of those who are not yet using the Internet.

2.3 Billion are mobile users. This number is expected to grow to 5.13 billion mobile users by 2017. (eMarketer)

More than 1/3 of global consumers say they are already ordering groceries online for home delivery, with more than half willing to try if it becomes available. (Nielsen)

2014 Leah Kinthaert

Quick Look: Global Online Grocery

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