Online grocery’s projected growth
Brick Meets Click’s monthly grocery report this week projects online sales expected to grow 5.2 times faster than in-store sales, as the online segment, which includes pickup, delivery, and ship-to-home, will account for 17 percent of all grocery sales in the U.S. by the end of 2029.
“Before the pandemic, eGrocery’s draw was largely about saving time, during the pandemic it was about protecting your health, and today it’s often more about saving money and time,” said David Bishop, Partner at Brick Meets Click.
The realized growth is undeniable, and if the projected growth continues, it represents a major shift in consumer grocery shopping. Retailers, especially Walmart, are able to make the online experience and value worth it, and no doubt, younger digital native consumers will drive the growth.
It’s probably also being driven by Americans’ decreasing desire to interact with each other, particularly at retail stores. The pandemic made shopping in a crowd a much worse experience, and now that we’ve been back to normal for several years, many consumers prefer to skip the experience entirely.
Retailers can either continue to invest in online grocery or make the in-store experience more enjoyable or provide better value.
Aldi price drop
Along those online vs. in-store shopping trends, as an Aldi shopper, I feel secure in saying it’s not a fancy journey through the store. You deposit a quarter for your cart and have to return it at the store front to redeem your quarter; you bag your own groceries in bags you bring or buy; the store doesn’t have many national brands; and sometimes stores run out of items late in a day.
But the upsides are so great. Prices are noticeably lower and you can get through so much more quickly because of that lower selection and a smaller footprint. Aldi also competes strongly on quality of many perimeter items, so it’s not a downgrade from higher priced competitors.
Aldi announced this week its doubling down on its low-price niche by lowering prices on more than 400 items nationwide, specifically calling out fresh meat for grilling, organic produce, pantry staples (private label), and summer favorites.
The retailer also reaffirmed its plans to add more than 225 stores this year.
Food inflation is still a pain point for consumers, and Aldi is loudly telling Americans that it feels their pain.
Greg Johnson is Vice President of Media for Blue Book Services
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