CHICAGO, Dec. 5, 2019 /PRNewswire/ -- Digital is sparking change in every market segment, and grocery is no exception. Evolving customer demand—coupled with continued increases in competition—is driving the business forward, forcing grocers to upgrade their digital capabilities if they are to thrive in a highly challenging business environment.
That's the overarching takeaway from the inaugural Grocery Digital Maturity Benchmark study, which was conducted by Incisiv and Winsight Grocery Business. The report provides the industry's first global assessment of grocery retailers' digital performance and identifies areas of improvement and investment for the 80 largest retailers in the United States and Europe.
The Grocery Digital Benchmark Maturity study takes a sweeping view of digital grocery sales platforms in conventional grocery stores, hypermarkets, discount/cash-and-carry stores and warehouse clubs. Some 120 attributes and 10,000 data points were captured across the four make-it-or-break-it stages of the customer journey, including research and discovery, ease of ordering, order fulfillment, and customer engagement and service.
While online grocery sales remain relatively in infancy, the Grocery Digital Maturity Benchmark study forecasts annual digital grocery sales to surpass $150 billion by 2025, growing 26% on a year-over-year basis. Digital grocery sales, meanwhile, are pegged to reach 13.5% of total U.S. grocery sales in 2024.
"Grocers need only look at the growth of Amazon in the grocery segment to see the importance of attaining increased digital maturity," said Gaurav Pant, Incisiv's chief insights officer.
"It's no surprise that U.S. grocers who implement digital capabilities see increased sales and improved competitive positioning," said Sylvain Perrier, president and CEO of Toronto-based Mercatus. "Yet, it's interesting to see the relative immaturity of the European market, demonstrating that the early adoption of grocery e-commerce in Europe has plateaued and the market is due for reinvention. Whether in the U.S. or Europe, grocers who have yet to enter the digital space or need to regain control of their e-commerce experience should look to Target, Kroger, BJ's and LeShop; these leaders' expertise in research and discovery, ease of ordering, order fulfillment, and customer engagement and service enable them to retain their data, shopper experience and brand."
While grocers will increase their focus on achieving lift in total in-store spend, growing visits and driving loyalty with mobile-centric shoppers, Ian Vaisman, senior digital marketing manager of Austin, Texas-based Dosh, said: "The use of new solutions like card-linked offers that can deliver proven return on advertising spend and direct ties to purchases will increase in the future as these solutions allow brands to tie their ad campaigns to physical store transactions through the use of mobile—the one device that seamlessly connects the online to offline shopping journey."
"Like retailers in other channels, grocers cannot afford to or minimize the importance of digitization and digital maturity," Pant concludes. "It's the bottom line."
The top 25 Digital Maturity Benchmark leading retailers include:
1. BJ's Wholesale Club Region: U.S.
2. Carrefour Region: Europe
3. Albert Heijn Region: Europe
4. LeShop Region: Europe
5. Auchan Region: Europe
6. The Kroger Co. Region: U.S.
7. Costco Wholesale Club Region: U.S.
8. Target Corp. Region: U.S.
9. Rewe Region: Europe
10. Walmart Region: U.S.
11. SPAR Region: Europe
12. Wegmans Food Markets Region: U.S.
13. Monoprix Region: Europe
14. Hy-Vee Region: U.S.
15. H-E-B Region: U.S.
16. Eroski Region: Europe
17. Safeway Region: U.S.
18. Albertsons Cos. Region: U.S.
19. Waitrose Region: Europe
20. Family Fare Region: U.S.
21. Coop at Home Region: Europe
22. Cub Foods Region: U.S.
23. Sainsbury Region: Europe
24. Metro Region: Europe
25. SuperValu Region: Europe
Exclusive insights from the global Digital Maturity Benchmark Study will be presented during a complimentary webcast on Thursday, Dec. 12, 2019, at 1 p.m. CST/2 p.m. EST. Click here to register now to secure a spot today.
About Winsight Grocery Business
Winsight Grocery Business provides insightful business intelligence for grocery executives and industry decision-makers, equipping them with information to compete more effectively. For more information, go to WinsightGroceryBusiness.com.