There’s good news and bad news for consumer packaged goods retailers in the near future.
First, the bad news: According to a recent survey of some 2,000 U.S. consumers by KPMG, the accounting and professional services firm, 75 percent of respondents said they plan to spend less than 40 percent of their grocery budgets online in 2019. That’s down from 83 percent this year.
And now for the good news: 25 percent of the respondents reported that they expect to spend more than 40 percent of their grocery budgets online next year, up from 17 percent in 2018.
The bottom line? More online grocery purchases will be made in 2019 than in previous years. The survey results were reported on digitalconsumer.com.
Of note is the finding that the projected growth in sales is expected to come from increased purchasing by shoppers already buying a considerable amount of groceries online, as opposed to sales from new customers. The survey also found that product assortment and product quality outweigh price for online shoppers. That’s a switch from critical factors influencing purchases by in-store shoppers.
For CPG retailers planning digital strategies for 2019, KPMG identified four key shopping segments, and their characteristics, on which sellers should focus:
- Online pioneers — typically consumers under 35 — are more interested in promotions and the online shopping experience than are other groups.
- Next-in-line adopters — consumers who spend less than 20 percent of their grocery budget online but plan to spend more in 2019 — care primarily about product assortment.
- Online doubters — those who do little shopping online — have no plans to spend more next year.
- Finally, in-store shoppers — traditional customers who do almost all of their shopping in brick and mortar stores — care most about price and product quality.
There’s a lot of misinformation out there — but these solid statistics can go a long way toward easing CPG retailers’ fears and helping them plot a new road to profitability.