Dive Brief:
- Online grocery shopping is “here to stay” as 79% of online customers plan to maintain or increase their use of the channel over the next year, according to a report released Tuesday by The Feedback Group.
- Supermarkets maintained the highest satisfaction score, surpassing other channels such as Amazon, mass retailers and dollar stores, the report found.
- “As a channel, supermarket investments in e-commerce capabilities have clearly paid off, but there’s still room for improvement,” Brian Numainville, principal at The Feedback Group, said in a statement.
Dive Insight:
While traditional supermarkets continue to best meet consumer needs for online grocery shopping, areas such as streamlining their online platforms and improving transparency could use some work, The Feedback Group reported.
Forty-eight percent of surveyed shoppers indicated they are spending more of their grocery budget online this year compared to last year, with a slight preference for delivery over pickup. The Feedback Group also reported that 90% of online shoppers also shop in stores — a figure that’s identical to the one FMI and NielsenIQ noted in their recent digital shopping report.
However, there are generational gaps in satisfaction for online grocery shopping across channels. According to the report, baby boomers ranked their online grocery shopping experience the highest while younger generations, including Generation X, millennials and Generation Z, were less satisfied. This divide suggests that younger shoppers have higher expectations for online grocery services, per The Feedback Group.
To close this generational gap and better cater to younger demographics, particularly Gen Z and millennials, retailers should focus on bolstering “personalization and enhanced usability,” according to the report.
Younger generations were less satisfied with the online grocery shopping experience
“Supermarkets continue to lead the way in online grocery satisfaction, demonstrating strong execution in convenience, fulfillment, and service,” Numainville said.
Grocers, though, need to improve transparency around product availability and order accuracy, according to The Feedback Group’s findings.
Supermarkets received low scores on challenges like identifying acceptable substitutions and determining the quality of fresh produce.
When key items are missing or fresh produce quality doesn’t meet a shopper’s standards it “erodes trust,” Doug Madenberg, The Feedback Group’s chief listening officer, said in a statement. “Retailers must enhance inventory accuracy and quality control, particularly in fresh categories, to deliver a more reliable and satisfying experience.”
Maintaining this trust is especially crucial as produce is the leader in fresh categories purchased online, yet has the lowest percentage of consumer confidence in quality among those categories.
Price transparency, however, does not appear to be a point of contention between retailers and customers as 70% of respondents who shop at the same retailer both in-store and online indicate the online price is the same as the in-store price.
The Feedback Group’s report surveyed 1,230 U.S. online grocery shoppers.
