instore - September 2017 - 24

retail revolution

Driving much of that growth are young urban males, who are taking on
more and more of the grocery shopping burden, but on their own terms
- namely, doing their shopping from the comfort of their computer,
phone or other device.
Retail consultant David Livingston of Waukesha, Wisconsin-based DJL
Research cites estimates that online's current share of grocery sales is
under 2 percent. Not that that means much when forecasting what it
could be five or ten years from now.
"How much it will grow I don't know, but I think the sky's the limit,"
Livingston says. "Things are changing so fast in the market. A lot of
the ways we will shop in the next five to ten years haven't even been
invented yet."
In the next five years, Livingston predicts, underperforming brickand-mortar grocery retailers across the country will be "closing by the
bushel." And much of that lost business will migrate to online sales.
Neil Stern, a consultant with Chicago-based McMillan Doolittle, also
puts online's share of total sales on the low end, at about 1.5 percent. But
in five years, it could be 4 to 5 percent; in 10 years, 7 to 10 percent. And
each percentage point, he says, represents about $10 billion.
Online currently accounts for about 3.5 percent of total retail grocery
sales, according to an estimate from Barrington, Illinois-based Brick

Meets Click, says Bill Bishop, the company's chief architect and
co-founder. Like other analysts, he believes that number is on a steady
upward trajectory.
The adoption of ecommerce is growing faster than many retailers
thought it would, Bishop says - so much so that brick-and-mortar
retailers no longer have the option of sitting on the online sidelines.
"Retailers need to have an ecommerce option just to keep up. It's
turning out to be the case that sales are not just growing rapidly, it'
something that you must have to have a balanced offering."

Perimeter store sales:
challenges, opportunities
The roadblock to more rapid growth of online grocery sales can be
summarized, Seifer says, in one word: fresh.
"Even young people want to pick out their own fresh items," he says.
"Online sales will probably get to double digits, but they have to get
over that barrier."
The opportunity to increase sales of instore deli, bakery and other
departments is there, though, Seifer says. People want more convenience. At the same time, more of them are shopping the perimeter.
Pulling those trends together in online sales can be done, if retailers are
willing to get innovative.
"If retailers can find ways to make those items more shippable and
more enticing, so they look great on a website, then it could be an
option for them."
While DJL's Livingston emphasizes there's no crystal ball when it
comes to predicting the impact technology will have on grocery shopping, he does think that consumers of even the near future will
have little trouble buying their deli, bakery, prepared and other
perimeter items online.

The addition of German discount giant Lidl to the U.S.
retail scene will shake up online and traditional sales.
24 * SEPTEMBER 2017 * instore

MONTICELLO / SHUTTERSTOCK.COM

"If you can't provide exceptional service, you won't stay
in business," he says. "The quality standards will be
so high, it won't matter whether you pick it out or
someone at the store does. Maybe there will be live
web cams showing foods being prepared. Whatever
it is, (buying perimeter-store items online) won't be a
concern to consumers."


http://www.SHUTTERSTOCK.COM

Table of Contents for the Digital Edition of instore - September 2017

instore -- September 2017
Editor's Note - The best tacos in town
CONTENTS
SPOTLIGHT - By the numbers: Sandwiches
Specialty Insights - Consider: The new Gouda
Cover story - Hispanic flavor
Commissary Insider - September 2017
Insight Insider: Bringing artisan to scale
Product Category Spotlight: The donut evolution
Operations PHO alternatives come to forefront
News - Need to know
Retail evolution - Ecommerce rising
Software solutions - Menu manager
Merchandising - On display: Tailgating season
Product trends - First to market
Product showcase
instore - September 2017 - instore -- September 2017
instore - September 2017 - 2
instore - September 2017 - Editor's Note - The best tacos in town
instore - September 2017 - 4
instore - September 2017 - Editor's Note - The best tacos in town
instore - September 2017 - 4
instore - September 2017 - 5
instore - September 2017 - CONTENTS
instore - September 2017 - 7
instore - September 2017 - SPOTLIGHT - By the numbers: Sandwiches
instore - September 2017 - 9
instore - September 2017 - Specialty Insights - Consider: The new Gouda
instore - September 2017 - 11
instore - September 2017 - Cover story - Hispanic flavor
instore - September 2017 - 13
instore - September 2017 - 14
instore - September 2017 - 15
instore - September 2017 - 16
instore - September 2017 - 17
instore - September 2017 - 18
instore - September 2017 - Insight Insider: Bringing artisan to scale
instore - September 2017 - com - 2
instore - September 2017 - com - 3
instore - September 2017 - com - 4
instore - September 2017 - com - 5
instore - September 2017 - Product Category Spotlight: The donut evolution
instore - September 2017 - com - 7
instore - September 2017 - com - 8
instore - September 2017 - com - 9
instore - September 2017 - Operations PHO alternatives come to forefront
instore - September 2017 - com - 11
instore - September 2017 - com - 12
instore - September 2017 - com - 13
instore - September 2017 - com - 14
instore - September 2017 - com - 15
instore - September 2017 - com - 16
instore - September 2017 - News - Need to know
instore - September 2017 - Retail evolution - Ecommerce rising
instore - September 2017 - 21
instore - September 2017 - 22
instore - September 2017 - 23
instore - September 2017 - 24
instore - September 2017 - 25
instore - September 2017 - 26
instore - September 2017 - 27
instore - September 2017 - Software solutions - Menu manager
instore - September 2017 - 29
instore - September 2017 - Merchandising - On display: Tailgating season
instore - September 2017 - 31
instore - September 2017 - Product trends - First to market
instore - September 2017 - Product showcase
instore - September 2017 - 34
instore - September 2017 - 35
instore - September 2017 - 36
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