During my many years as a supermarket retailer I saw my share of panic buying related to natural disasters like blizzards and hurricanes. Like many, I lived through the 9/11 crisis and its impact. But I have never experienced anything like what we are currently going through.
I’ve talked with many people across the supply chain these past few days, from brand manufacturers to distributors to retailers. I have been in our local stores seeking supplies but also watching how retailers are responding to a never-before environment.
While healthcare workers are always thought of as the front lines in a pandemic like we are experiencing, it is just as true that the workers in supermarkets and drug stores are equally on the front lines. The commitment by people across the massive grocery industry to serve the people in their communities during this crisis is to be commended. They don’t have to be there - they can stay home like many others, taking care of their families, and self-quarantining. But these store workers are unselfishly putting themselves on the front line of the coronavirus battle, realizing that feeding and providing needed supplies for their communities is as important as the doctors and nurses caring for the ill.
When the current crisis abates - and it will - I believe the retail industry can step back to realize what it has accomplished….
For a long time, the grocery industry was a major holdout on the move to ecommerce. Most grocers lacked the resources to make online grocery buying as convenient and satisfying as in-person shopping, and it was easy to assume that it couldn't be done.
Those assumptions are still holding the industry back. As of early 2019, only 3% of sales in the grocery retail sector happened online – compared to around 10% for all retail sectors. Online grocery has…
As we gaze toward the future of the grocery business, two numbers might be worthy of study.
Both suggest significant changes in consumer behavior – and strategic investment.
The first is 56 percent. That’s the number of US internet users in the past twelve months who purchased groceries online, according to research published recently by the CPG analytics firm TABS Analytics. It compares to the 38 percent of the US internet population who purchased online a year ago, and equates to some 159 million persons.
The second is one in eight. That’s the rough number of worldwide Google searches that were conducted via a voice assistant interface last year. That’s some 250 billion searches.
The first – the shift to online grocery ordering – is apparent to most industry leaders. Though today online ordering accounts for only two percent of total US food and beverage sales (according to eMarketer’s March 2019 study), digital grocery revenues are expected to grow nearly 20 percent per year for at least the next five years.