online groceries shopping
HOME online grocery shopping ONLINE FOOD SHOPPING online groceries shopping
online food stores
 
online groceries shopping
EGROCERY NEWSLETTER
Worldwide Internet Users top the 1 Billion Mark

According to Internet World Stats (www.internetworldstats.com) Worldwide Internet usage reached and surpassed 1 billion people on December 2005. Growth in all countries and regions of the world shows an increase of 182% between 2000 and 2005. Presently 1,018 million people worldwide use the Internet. This represents approximately 15.7% of total world population.

In the US, over 200 Million people, or 68% of the population use the Internet regularly. This figure is increasing steadily at a rate of approximately 5% per year. This confidence in the Internet is echoed in the high take-up of High-Speed Internet access in the US (70,000 users) and the increasing amount of time Americans spend on line per month (average of 32 minutes per Internet user per month).

These growing Internet usage figures have had a positive impact on eGrocery in the US. eGrocery continues to grow at over 18% per year.


Marketwatch – “Your guide to the US eGrocery Market”

-Roche Bros. went live in October in Boston and the company and the customer are reportedly very pleased with the initiative so far.

-Whole Foods continue to work with Peapod in the Chicago area on a small-scale trial. With Whole Foods stores spread from coast to coast and a profile that is perfect for online shopping, their full-scale entrance into the US eGrocery market would be big news

-New York continues to see more eGrocers enter the eGrocery fray. Waldbaums (A&P banner) went live before Christmas on Long Island, in part due to the threat of Fresh Direct who have been delivering into Suffolk county recently.
-Simon Delivers sales in the Twin Cities have risen in 2005 after a fall in their 2004 sales versus 2003

-The recent sale of Albertsons does not seem to have had a major negative impact on any of their market areas. Acme Markets (Albertsons subsidiary) went live last summer in Philadelphia and reports from the city of Brotherly Love indicate that the market there is buoyant.

-The Robert Fresh Market eGrocery offering in New Orleans has been temporarily suspended following Hurricane Katriona and the relief effort

-The FMI reported that 5% of US grocery customers had bought groceries online at least once in 2005 - up 2% from 2004.


“Bricks and Mortar” as an eGrocery solution.
By Arthur Ackles, Director of E-Commerce in Roche Bros. (Boston, MA)

Steamline. Homeruns. Shoplink. They were all internet based, home delivery venues that went out of business with large customer bases. How, with 10,000 + customers, could a new business be gone so quickly. The answer is overhead! The demand for an eGrocery delivery solution is certainly out there. The problem is turning all of those customers into a revenue generating, profit making venture. The aforementioned companies all started from the ground up with no established base to draw from. The cost associated with building an internet based home delivery solution from the ground up is challenging to say the least. So, how does one take the obvious need and customer base and turn that into a profitable business? The answer lies in having an established “brick and mortar” operation to ease the costs associated with opening any business.

Not only does the program have to work from a business standpoint but it also has to work from a customer’s standpoint . You can make anything work financially by adding on customer related costs to cover all of your expenses. Most customers understand that there are going to be costs to operating a program that does all the work for them. However, there are limits to what a customer will spend for convenience. Finding this fine line between what a customer will spend for a particular service and what a profitable business can charge is somewhat challenging. By using existing “brick and mortar”, many of the costs associated with a new business can be absorbed, and thus, have less of an effect on the bottom line.

Let’s take a moment and look at the costs of starting an eGrocery offering. There are two obvious expenses that come to the forefront: Labor and Transportation. You need people to accept, process, and deliver the order. You also need the vehicle to transport those orders. If you take the transportation costs and spread them over a given time period, you can ease the startup costs significantly.

Marketing is also an expense that can be significant depending on how much of it you want to do. Working the entire program out of an existing store allows you to reap the benefits of your current “brick and mortar“ operation. It’s basically like adding another department to your store without major renovations, no additional mortgages or utilities, and no additional labor in the store other than the eGrocery employees themselves. If you run the program out of enough stores, you can produce the revenue of an additional store, expand your geographic coverage area, all for 1/10th the cost of building a new store.

There was a time when the prevailing opinion was that an eGrocery solution couldn’t work. Those opinions were based off failures that didn’t have an existing operation in place to ease the pain. With increasing internet retail growth, consumers that are more comfortable shopping online everyday, and an increasingly busy lifestyle, the opportunity for a business to be successful on the internet has never been better. The opportunity for a successful EGrocery business already lies within your walls.


Online Shopping:
By Heidi Chapnick Widera (E-Commerce Business Owner, A&P)

“When I first took a job in e-commerce, I was a district manager for Peapod in Boston. Recently separated, I shopped the floor of the store at 4am with two carts tied together. In the first cart were the customer’s groceries and in the second was my daughter, her blankie and teddy bear, sucking her thumb as I ambled up and down the aisles scanning and packing. We had no fleet of trucks in those days. We delivered in our cars. That was in 1995…I have been attacked by dogs, had bananas thrown at me and almost handed the tote containing my daughter to an elderly woman!”

If anyone would have told me 10 years ago, that I would be buying bagged ready made salad and sending my daughter off to school with lunchables, a boxed drink and pre-cut apples with pre-packaged caramel topping, I’d have thought they were nuts!! No more rushing to get the tuna sandwich ready, washing the dastardly thermos and cutting the celery. It’s all about saving time.

We are living in a throw away world, many of us. Being pressed for time and urgently needing to find a few more hours in a day, grocery shoppers are flocking online to place food orders conveniently, in the window of time that they have, and without stepping foot in the brick and mortar store….and so is born the savvy online grocery shopper – shopping online for food takes about 12 minutes once acclimated, and delivery windows are picked by customers according to their convenience. Groceries are shopped for by specially trained shoppers, picking produce for perfection, sumptuous seafood and mouth-watering deli; all according to the whims and desires of their online customers.

“I got so tired of lugging all of those gallons of water up the hill to my house…I ended up going online and trying eGrocery shopping,” says Donna Getz. I placed my order at 7am before going to work and then received it between 5-7 after work that same day. The delivery person handed me the bags through the door and all of my groceries were packed solidly. My ice cream was hard as a rock and my eggs were cold and whole. There was not a bruise on my apples! My little experiment was completed. I became an addict for shopping online.” Getting your order on time and having quality produce and specialty items are two triggers, which when satisfied, produce an avid advocate of shopping online.

The eGrocery shopper has evolved differently in relation to the type of demographic area in which they live. Manhattanites tend to order more frequently, but less at a time. Today’s jobs have increased work hours and changing family set-ups have left people with less time on their hands.

Consumers are busier, more stressed and more monied, but less patient with tasks that take time. Young families and career oriented folks who would ultimately like to be able to order from their blackberrys’, their I-Pod’s or their phones, whichever of the multi-channel venues is more convenient at the time are driving this online revolution and evolution. They are quite discerning, extremely fussy and want the very best gourmet and organic products available each and every time.

New Yorkers want what they want, when they want it, and that usually means, today. Most of our customers prefer to get their order the same day, instead of waiting until the next day, as our other competitors offer.

Suburban eGrocery shoppers, such as the Waldbaum’s customers, are more likely to be larger families with children. The profile most common is the young to middle aged married, divorced or single mother, looking to get some help with her daily chores…and for anyone who is a mother, schlepping three kids to the supermarket while one has his finger in his brothers ear, one is sliding a pancake into the VCR and one is slathered in chocolate frosting and plastered to the wall, is quite a juggling act and extremely tiring.

Using online, mom can simply click on her favorites and automatically, her weekly diapers, milk, bananas and extra strength Excedrin magically appear in her shopping cart...the brand she likes, the sales the wants and the convenience she urgently needs. Now mom can sit at her computer, coffee mug in hand and click away the meals for the week using the recipe and meal planning section. (“Ryan, why did you put the fish in my coffee mug?”) She takes her coupons and hands them to the driver and voila!! Now, online grocery shopping doesn’t currently bring you a hot cup of coffee and the Sunday paper, but it certainly could in the future…and how about dinner and a movie? One stop shopping is what it is all about.

Manhattanites would love to have access to everything they shop for with one click…partnering with external vendors and offering the one stop shop is key to the continued success of the online competitors.

Another growing group of online shoppers are the empty nesters, handicapped and older folks in places like Long Island. Kids are grown and in college and mom and dad are learning how to do new things…like use the internet…and although at first they back away from the machine, praying, dovening and making the sign of the cross (depending upon their religious beliefs), they WILL finally get it….and then we’d better watch out…now mom and dad can order food for their college children and for themselves…oh and they love to stock up…54 rolls of paper towels…27 bottles of Scope and enough toilet tissue to fill a third world country…(a carryover from the depression, perhaps?). Although this group is growing, older consumers still tend to like to place orders by phone and targeting that audience is a costly, yet much needed venture.

Five years ago online grocery sales were about $85 million (Machlis, 1998) In 2002, Jupiter Media metrix estimated that online grocery revenue would reach 1.3 billion by 2003. E-commerce grocery shopping is estimated to become an 11 billion dollar business by the end of 2006. Today, traditional brick and mortar stores are entering the online market as an attempt not only to stem dollar losses from online competition, but to leverage their brand awareness, and build on their long standing heritage of guaranteed customer satisfaction and customer loyalty, even reaching new market areas in their growth. Online shopping is here to stay…in a few years, we may all be shopping that way.

In 1997, Heidi helped to mastermind and build the very first ‘wareroom’ for east cost eGrocery shopping with Peapod and built the first 15 sites for them in Boston, playing off the mezzanine (upper) areas in Stop & Shop supermarkets. After several years Directing East Coast Operations, Heidi Chapnick Widera, saw Peapod develop into a driving force in the online shopping and delivery business, putting Shoplink and Home Runs out of business in Massachussetts within two and half years.

In 2004, she took a job Directing e-commerce for A&P US. Since that time, she has been working with management to drive the evolution of A&P from brick and mortar to ‘click and mortar,’ a transformation that has already taken place in the company’s New York metropolitan area Food Emporium and Waldbaum’s operations. Currently, Heidi is Directing the Customer Care Department and is the E-commerce Business Owner. “It’s all about superior customer service, perfect product in a timely manner, and doing this by way of a one stop shopping experience for everything needed.” After 30 years in retail customer service and operations and half of those specifically in e-commerce grocery, Heidi can profile the eGrocery customer and target audience.

 
 
online grocery shopping
 
 
Copyright © 2008.