In the past few years, upheavals that have turned the retail trade industry upside down have been widely discussed. And for good reason! Sears, Future Shop, Target and Mexx have recently closed their doors, leaving behind a bleak future for superstores.
Are we on the eve of the same phenomenon in the food sector, also threatened by online business?
The answer is quite simple: Yes! Wal-Mart and Amazon intend to gain ground in online grocery shopping in the coming years. They want to make it faster, more accessible, and above all, less expensive. Amazon’s purchase of Whole foods, one of the American food giants, is proof of the next digital shift in our grocery basket.
It is in this context that large grocery stores must renew their offer. Metro recently launched a robust digital offensive to remain competitive with Silicon Valley giants, which have been threatening established grocery stores in Canada for several years.
But are Canadians ready for this shift? To find out, Leger polled 1,581 Canadians across the country to learn more about their food shopping habits.
First and foremost, the survey indicates that 21% of Canadians have previously done their groceries online in their lifetime. A result that is quite low at first glance…
However, once this result is broken down according to the age of respondents, it is not that low. Among 18 to 24-year-olds, the percentage climbs to 26%, presumably because many of them still live with their parents and don’t have to deal with what is in their fridge.
On the other hand, among young families, 35 to 44 years of age, which are often more financially well-off, the percentage rises to 35%!
In terms of the online food life cycle, digitization of groceries is still in the growth stage, i.e., market share and purchase volume will increase rapidly in the coming years. In the United States, where online grocery shopping has experienced an impressive boom, Albertsons, number three in the grocery industry, has seen its online sales surge by 75% in 2018 alone!
What about you? Would you accept to foresake your neighbourhood grocer to make more room for Amazon and other digital giants to stock your fridge?