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NEWS10 October 2017

UK grocery shoppers turn to online

News Retail Technology UK

UK – Shoppers are increasingly turning to online channels for their food and grocery purchases, with 42% shopping online for groceries as part of their overall food shop every month.

According to data from the Institute of Grocery Distribution (IGD), those who say they shop online for groceries are doing so more frequently; 28% of online shoppers claim to shop once a week or more online, compared with 20% of shoppers in 2013.

Almost a third ( 29%) of online shoppers claim to be subscribed to an online delivery saver pass scheme, which allows shoppers to pay a subscription for deliveries rather than paying a separate charge for each order.

The data follows previous IGD growth predictions for the online grocery market of 53.8% between 2017 and 2022, to £16bn.

The online grocery market currently accounts for £10.4bn of the UK’s food and grocery market (worth £184.5bn overall). Supermarkets, meanwhile, account for £86bn, according to data published by IGD in June.

Research published by IGD last week ( 5 October) also highlighted the potential for online groceries in the States, finding that online will be the fastest growing channel in the US grocery market over the next five years.

The research suggests that more shoppers are using a combination of online and in-store shopping for their groceries.

Vanessa Henry, shopper insight manager at IGD, said: "Online grocery shopping is not being used in isolation. What we call ‘omnichannel shoppers’ are having a big impact on the grocery market, with over half ( 54%) of shoppers claiming that they use five or more different channels every month, as well as buying from 12 different store brands on average.

"Retailers should therefore consider how they are driving loyalty so that they become the brand of choice, for example with online delivery saver passes or special promotions."