Online grocery sales 'will double within five years'

3/23/2011 0:12:20 AM

Britain’s internet grocery market will double to £9.9bn by 2015, research group IGD forecast on Thursday as Morrisons became the latest supermarket to make a move into online sales.

IGD said sales online continue to grow at a faster rate than any other sector in the grocery market, with growth of 21.4pc in 2010 to £4.8bn.

One in four food and grocery manufacturers is considering creating its own e-store, IGD’s Online grocery retailing – Building capability for a digital future report found, with 43pc of manufacturers anticipating that more than 10pc of their total revenue to come from the online sales by 2015.

Morrisons, Britain's fourth-largest online grocery shopping chain announced on Thursday that it plans to start selling food online in the next two years. It is the only one of the main UK supermarket chains – including Tesco, Sainsburys and Asda – which has yet to build an online presence.

“The company is beginning to plug its online offering gap, which will gain more importance as shopping habits equalise between physical and virtual visits to the stores,” Richard Hunter, an analyst at Hargreaves Lansdown, told Bloomberg.

The online grocery market, which accounted for 3.2pc of total grocery spend in the UK last year, is projected to increase to 5.4pc by 2015, IGD said.

Its monthly ShopperTrack survey found that 13pc of Britons expect to use online grocery shopping more in the next year, rising to 24pc among 18- to 34-year olds.

Joanne Denney-Finch, IGD chief executive, said: “The world around us is changing and technology is leaping ahead. You only need to look at the last 10 years to see that the digital age is evolving at an incredible pace.

“The strong growth predicted for the online grocery channel presents an opportunity for companies of all sizes and types – retailers, manufacturers, local producers – to meet the needs of today’s multi-channel shopper. It is encouraging to see manufacturers looking to flex their business models, participate in the digital explosion and engage with consumers in different ways.

“As the market is constantly changing, it’s still difficult to predict exactly what online grocery retailing will look like in the next few years. What is exciting, however, is how the digital revolution will evolve and shape our industry in the years to come.”

IGD interviewed 169 retailers and manufacturers between November 2010 and January 2011.

Tags:  asian food onlinenescafe 3 in 1ahmad teachinese grocery onlinegrocery shoppingasian grocery


<-- Back