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The Food Institute Blog

E-Commerce Share Of Grocery Trade Projected To Top 10%
Posted on May 19, 2016 by Jennette Zitelli

As the dollar share of traditional grocery retailers is expected to decline 0.4% and non-traditional grocery stores by 0.2% by 2020, e-commerce activity is seen ramping up and is projected to account for 10% of all grocery sales within ten years, according to data presented by Willard Bishop, an Inmar Analytics Company, at The Food Institute's webinar "Future of Food Retailing: Becoming Change Agents Will Keep Products and Stores Relevant." Currently, e-commerce is growing at almost 10 times the annual growth rate of brick-and-mortar stores.

Traditional supermarket's share of sales will take the biggest hit, noted Jim Hertel and Craig Rosenblum of Willard Bishop, dropping 3.0 percentage points by 2020 to about 35%. Thus, the presenters urged grocers to become change agents and look carefully at their e-commerce presence and to avoid becoming a "denier" who may be forced to exit the business.

Currently, Willard Bishop estimates that e-commerce accounts for 4% of brick and mortar sales, averaging 100-200 orders a week in stores offering e-commerce, with a high of 1,000 per week. Distribution center -based programs are the most profitable platforms noted the presenters, with DC Pick, Home Delivery leading the pack. Store pick, home delivery and parcel models were the least profitable.

Click here to listen to the entire webinar and download a pdf of the presentation slides.

Posted in Willard Bishop   Ecommerce  

 

About the Author

Jennette Rowan
Product Manager
The Food Institute

Jennette writes and edits the Food Institute’s annual publications, such as Food Business Mergers & Acquisitions, The Food Industry Review and The Almanac of the Canning, Freezing, Preserving Industries.  She also handles marketing and promotions for books, seminars and the monthly webinar series. Additionally, she writes for the daily news update, Today in Food, and periodically contributes to the weekly Food Institute Report. She has a background in non-profit and environmental marketing, programming and writing, and joined the Food Institute in 2013 with a degree in Communication Studies from Rowan University.

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