Challenges, Opportunities For Nontraditional Food Retail Channels

While online and nontraditional grocery shopping options proliferate, research shows that shoppers, including the 25 percent who already shop for groceries online, rate traditional "brick-and-mortar" retailers significantly higher on a large number of key attributes.

CHICAGO (PRNewswire) — Consumers are changing how they shop for food and beverages. Some shifts, such as a marked increase in fresh food purchases, benefit traditional "brick-and-mortar" retailers while others, such as a growing interest in shopping whenever/wherever and having groceries delivered, benefit online retailers.

While online and nontraditional grocery shopping options proliferate, Technomic research shows that shoppers, including the 25 percent who already shop for groceries online, rate traditional "brick-and-mortar" retailers significantly higher on a large number of key attributes. 

Who does better? (%)*  

 
 

Brick-and-mortar retailers

Online retailers

Quality of perishables

67%

5%

Convenience

60

13

Local community support

56

5

Knowledgeable, friendly staff

55

6

Shopping experience

54

9

Price

44

15

Variety

38

22

Loyalty programs

38

9

*Based on a sample of 1,250 consumers
Source: Technomic Inc.

    

Bob Goldin, executive vice president of Technomic, notes that, "traditional retailers appear to be doing an excellent job in satisfying their customers, as evidenced by the fact that 61 percent say they enjoy the in-store shopping experience."

Goldin believes this high level of satisfaction may limit the potential for many online retailers. "Brick-and-mortar competition is very formidable," he adds.

Kelly Weikel, Technomic's study director, says "online retailers have a number of consumer appeals, but must overcome several major hurdles before they can optimize their potential, including concerns about freshness and order accuracy." 

Technomic's research on online and emerging food retail channels covers over 20 discrete emerging channels and 20 specific companies. The firm will conduct a 30-minute complimentary webinar on December 4, 2014, at 10 a.m. CST to discuss key study findings.

About Technomic
Only Technomic delivers a 360-degree view of the food industry. We drive growth and profitability for our clients by providing the most reliable, consumer-grounded, channel-relevant data with forward-looking strategic insights. Our services range from major research studies and management consulting solutions to online databases and simple fact-finding assignments. Our clients include food manufacturers and distributors, restaurants and retailers, other foodservice organizations, and various institutions aligned with the food industry. Visit us at technomic.com

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