Progressive Grocer - August 2017 - BB33

GROWTH * CONVENIENCE * STRONG CONTENT
and at the right cost. Whether it is

Online beer is profitable. Only a

home delivery, "click and collect" or

handful of the top-selling online

refrigerated lockers, convenience is

categories outpace beer in per-unit

the key for consumers. The process

profits. In fact, an average beer SKU

becomes easier for customers after

generates more than twice the per-

the third order. Customers who

unit profits of an average store SKU.

order three times are significantly

Adding beer to the retailer's online

more likely to become loyal online

offering provides a bigger opportunity

shoppers.

to generate higher per-unit profits

(4)

3

is the

MAGIC

NUMBER!

After three
orders,

LOYALTY

SPIKES.(4)

than most other items in basket.(4)
OPTIMIZE OPERATIONAL

EFFICIENCIES AND PROFITABILITY

eCOMMERCE
DO'S AND DON'TS

Online economics are challenging
and can be margin dilutive. Best-

TRAFFIC BY
PLATFORM

in-class grocery retailers are taking
a long-term view of eCommerce

eCOMMERCE

FORMAT

by providing a convenient online

Do's

experience while simultaneously

*	 Deliver strong web content

testing various operational and

*	 Build convenient and powerful

fulfillment solutions to improve the

	 website navigation and search

economics of their online program.

	functionality

9%
44%

47%

*	 Personalize the shopping experience
Store Pick models experience high

*	 Offer convenient customer

Tablet

out-of-stock rates, which drive up

	service

labor costs and contribute to a poor

*	 Optimize operational efficiencies

Smartphone

shopping experience.(4) In the beer

	 and profitability

category 40% of the SKUs represent

*	 Provide convenient fulfillment

95% of sales. Focusing on a core group

	 options for pick-up/delivery

of UPCs that are ordered frequently
among most online grocery shoppers

Don'ts

will make it easier to manage inventory

*	 Complicate navigation with too many

and significantly reduce online out-of-

	 filters

stocks.(4)

*	 Go live unless user experience works

Desktop
Demandware
Shopping Index
report, September
2016

	 well for mobile
Beer can strengthen online programs

*	 Offer better pricing and deals in-store

in a number of ways. Core grocery

	 vs. online

shoppers who buy beer are threetimes more likely to buy beer online
with their groceries than non-core
shoppers and spend 12% more per
week on beer when they shop both
in-store AND online.(4)

Sources:
1. Lightspeed/Mintel August 2016
2. Willard Bishop Projection, 2016
3. Brand Hook Study, December 2015
4. Willard Bishop 2016 eCommerce SuperStudy™
5. MillerCoors Projection, December 2016
6. A.T. Kearney 2015 Study of On-Line Grocery Shopping
7. Demandware Shopping Index report, September 2016

33



Table of Contents for the Digital Edition of Progressive Grocer - August 2017

Contents
Progressive Grocer - August 2017 - Intro
Progressive Grocer - August 2017 - CT1
Progressive Grocer - August 2017 - CT2
Progressive Grocer - August 2017 - Cover1
Progressive Grocer - August 2017 - Cover2
Progressive Grocer - August 2017 - 3
Progressive Grocer - August 2017 - 4
Progressive Grocer - August 2017 - Contents
Progressive Grocer - August 2017 - 6
Progressive Grocer - August 2017 - 7
Progressive Grocer - August 2017 - 8
Progressive Grocer - August 2017 - 9
Progressive Grocer - August 2017 - 10
Progressive Grocer - August 2017 - 11
Progressive Grocer - August 2017 - 12
Progressive Grocer - August 2017 - 13
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Progressive Grocer - August 2017 - 20
Progressive Grocer - August 2017 - 21
Progressive Grocer - August 2017 - 22
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Progressive Grocer - August 2017 - 66
Progressive Grocer - August 2017 - DF1
Progressive Grocer - August 2017 - DF2
Progressive Grocer - August 2017 - DF3
Progressive Grocer - August 2017 - DF4
Progressive Grocer - August 2017 - 67
Progressive Grocer - August 2017 - 68
Progressive Grocer - August 2017 - 69
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Progressive Grocer - August 2017 - Cover3
Progressive Grocer - August 2017 - Cover4
Progressive Grocer - August 2017 - BB1
Progressive Grocer - August 2017 - BB2
Progressive Grocer - August 2017 - BB3
Progressive Grocer - August 2017 - BB4
Progressive Grocer - August 2017 - BB5
Progressive Grocer - August 2017 - BB6
Progressive Grocer - August 2017 - BB7
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Progressive Grocer - August 2017 - BB10
Progressive Grocer - August 2017 - BB11
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Progressive Grocer - August 2017 - BB33
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Progressive Grocer - August 2017 - BB46
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Progressive Grocer - August 2017 - BB48
Progressive Grocer - August 2017 - BB49
Progressive Grocer - August 2017 - BB50
Progressive Grocer - August 2017 - BB51
Progressive Grocer - August 2017 - BB52
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