- Language: English
- 182 Pages
- Published: November 2011
- Region: United Kingdom
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UK E-retail Grocery Retailers 2010
- ID: 1436363
- October 2010
- Region: United Kingdom, Great Britain
- 50 pages
Worth just £365m in 2000, UK online food & grocery sales have grown rapidly to reach £4.7bn in 2010. However, growth over the next five years will slow dramatically, with an average rate of 12.6% compared to the 26.7% enjoyed over the previous five. With the market maturing, achieving capacity and efficiency gains will be imperative to fully maximize the opportunities for growth available.
Features and benefits
Market size, sales, growth rates, and penetration rate for the UK online food & grocery market 2000 to 2014.
Analysis of the key issues impacting the market, identifying how best to exploit opportunities for growth and ways of overcoming growth inhibitors.
Detailed consumer insight. Shopping population, spend per head, frequency of purchase, and consumers' views on buying food & groceries online.
Profiles of key players. Sales, growth rates, and market shares between 2005 and 2010. Detailed analysis of operating models and outlook for future.
With a fifth of consumers doing their weekly food & grocery shop online in 2010, it is now seen as the norm. The enhancements being made by the major players to improve their propositions and consumers increased desire for convenience has seen spend per head on online food & grocery increase from £280 in 2000 to £675 in 2010.
By 2014, online sales will make up 5.2% of total food & grocery spend, with consumers using multiple channels to buy their groceries. But with growth coming from encouraging existing online shoppers to spend more, the battle for market share is intensifying. Indeed, Morrisons’ entrance will not significantly boost spend, but take it from rivals.
Consumers’ tolerance towards poor service will diminish, and expectations will rise. Investment in providing specific delivery times, improving product quality and availability, freshness of produce and error reduction, will be essential to ensure a share of sales from the existing customer base and to steal spend from rivals.
Your key questions answered
What is the value of the market in 2010? How has the market grown over the last decade? How is it set to perform over the next five years?
What are the key issues impacting the market? How can the inhibitors to growth be overcome? What are the strategies for success?
Who are the major players in the market? What's thier market share? How have they performed over the last five years? What are their prospects?
How many people buy groceries online?how frequently do they shop?, how much do they spend per head?, which shoppers offer the most potential?
What are the strengths and weakness of the key online food & grocery operators?
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Growth slows but substantial opportunities remain
Online food & grocery sales have grown rapidly, reaching £4.7bn in 2010
Consumers shopping online for food & groceries more frequently….
…and spending more per head
Growth is slowing as the market shows signs of maturity
Competition is intensifying….
…but with sales increasing by 57% over next five years, substantial opportunities remain
All about being multichannel…
…and targeting consumers with the most growth potential
Online now accounts for substantial part of food & grocery spend
More consumers are buying food & grocery online
A fifth of customers do a weekly food shop online
One quarter of shoppers spend £20.00 or under a year
Consumers spent £4.7bn buying their groceries online in 2010
Growth in online food & grocery spend slowing
Market showing signs of maturity
Shopping population heads for saturation
Growth coming from higher spend per head
Online sales to account for 5.2% of food & grocery spend by 2014
Online food & grocery sales 2000 to 2014
Competition set to intensify
Growth will come from stealing share
Competitive threats are mounting
Little impact from Amazon – for now
When, not if, for Morrisons
Maximising potential of online food & grocery
Drivers and inhibitors to growth of online food & grocery market
Overcoming inhibitors to growth
Shopping experience and product quality problems still need to be addressed
Consumers prefer instore for quality, trust, service and getting a refund
Consumers still put off by delivery
Rise in single occupancy households
Look for capacity and efficiency gains
Exploiting avenues of growth
Exploit desire for convenience
Target the right shoppers
m-commerce next avenue for growth
The future is multichannel
Online food & grocery models adopted by retailers
Sales of major online grocery retailers 2009 and 2010
Sales of major online grocery retailers 2004–2010
Market shares of major online grocery retailers
Share of spend of major online food & grocery retailers 2010e on 2005
Market share of major retailers 2005–2010
Top Eight online food & grocery retailers
Tesco retains top spot for attracting online food & grocery shoppers
Asda improves its online shopper share
Sainsbury and Ocado lose shopper numbers
Tesco - Online comparable, if not superior, to shopping instore
Online food & grocery sales reach £1.7bn
Losing share but maintains top spot
Looking to improve online experience and quality of delivered product
Sticking with dark stores
Sainsbury - Focuses on capacity and efficiency gains
Online food & grocery sales growth on the rise
Makes a substantial gain in share of online food & grocery market
Leveraging non-food & multichannel capabilities
Needs to focus on continuing to enhance the online offer or risk losing share
Asda - Strives to build world class dotcom business
Online food & grocery sales growth slows
Asda steals greater share of online food & grocery market
Improves usability and functionality of its website
Embraces social media
Follows Tesco with dark stores
Ocado - Leads by innovation
Sales growth remains impressive despite slowing
Continues to make market share gains
Unique model is a strength…
…but also a weakness
Development of product ranges essential
Maximises potential of m-commerce
Continued innovation will help as competition intensifies
Broadening its offer
Plans to build a second warehouse
New competitors not far off
Financial Statistics – VAT
Ask the analyst
TABLE OF FIGURES
Figure 1: Online food & grocery spend and growth rate 2000–2010e
Figure 2: Value and growth of online food & grocery market 2000–2014
Figure 3: Spend per head on food & grocery online 2009?2014
Figure 4: Online share of total food & grocery spend 2000–2014
Figure 5: Drivers and hindrances to growth of online food & grocery market 2010–2014
Figure 6: Comparison of the picking models in online food & grocery retailing 2010–2014
Figure 7: Sales of major online grocery retailers 2009 and 2010e
Figure 8: Share of spend of major online food & grocery retailers 2010e on 2005
Figure 9: Top Eight food online retailers – where food & grocery shoppers bought online 2008 and 2009
Figure 10: Tesco online food & grocery sales in calendar 2005–2010e
Figure 11: Tesco share of food & grocery spend online 2005–2010e
Figure 12: Sainsbury online food & grocery sales in calendar 2005–2010e
Figure 13: Sainsbury share of food & grocery spend online 2005–2010e
Figure 14: Asda online food & grocery sales in calendar 2005–2010e
Figure 15: Asda share of food & grocery spend online 2005–2010e
Figure 16: Ocado food & grocery sales 2005 to 2010
Figure 17: Ocado’s share of online food & grocery market 2005 to 2010
TABLE OF TABLES
Table 1: Summary of online food & grocery shoppers and spend 2009
Table 2: Frequency of shopping for food & grocery online 2009
Table 3: Spend per year on food & grocery online 2009
Table 4: Online food & grocery shopping population 2007?2014
Table 5: Online food & grocery spend, sector penetration and share of total online 1999–2014
Table 6: Sales of major online food & grocery players 2004–2010e
Table 7: Year-on-year growth in major online food & grocery players sales 2005–2010e
Table 8: Share of spend of major online food & grocery retailers 2005–2010e