The number of retail customers in the US who are using online grocery services has peaked, according to new research from category growth design agency ChaseDesign. The study found that in-store shopping remains the dominant channel for buying consumer goods in the US and this is expected to grow in 2023
The report found that the level of shoppers opting for buy online pickup in-store (BOPIS) “all the time” dropped to 32% in 2021, from 45% in 2020, with this number expected to shrink further in 2022. Shoppers relying on home delivery of groceries purchased online will also decline in the near-term future by nearly 25%.
ChaseDesign said these trends will require brands and retailers to rethink how and where they’ll invest for new growth. With the pandemic receding, online shopping has now clearly become a convenience, and one that comes at a price premium. The core of shopping trips remain in physical retail, where the vast majority of grocery purchases are still made.
The ChaseDesign Online Shopper Survey also found that home delivery now faces issues with value delivered, possibly accelerated by inflationary times. The number of people who claimed to “always” use delivery to home when buying groceries dropped to 16% in 2022, down from 31% in 2021.
The reason cited most often by consumers for not wanting to shop online for groceries is simply that they prefer to shop in a physical store. Joe Lampertius, President of ChaseDesign, noted: “This is driven by a lack of trust in having retailers pick and deliver exactly what the customer wants. Our survey shows 33% of shoppers have issues with the quality of products selected and a slightly lower percentage are worried about availability through the digital platform.”
Other key findings from the Online Shopper Survey include:
- There’s a $50mn “commerce gap” between pick up in store vs. pick up at curbside when it comes to the incremental purchases shoppers make. For shoppers who buy online and pick up in store, 42% pick up additional items versus 32% for pick up at curbside
- Online grocery shoppers avoid categories where careful selection matters most to them, like meat and seafood, produce, dairy products, deli, bakery and floral.
- Walmart has proven to provide the best BOPIS, curbside pickup, delivery to home and usage of these services through its app, while also having most the improved services over the past year.
Lampertius added: “Our survey pinpoints several opportunities for retailers trying to take advantage of the new shopping environment. For instance, 10% more curbside pickup shoppers complained about the time wasted in their cars waiting for their order in 2022 over last year. If the retailers use that captive time average five to 10 minutes with some shopper engagement and improved impulse merchandising strategies, brands and retailers will be rewarded with a more loyal customer and incremental purchases”.
