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   Consumers Continue To Choose Physical Over Digital For Groceries
by International Council of Shopping Centers (ICSC)
Posted: Tuesday, September 12, 2017 at 3:38PM EDT

NEW YORK -- Consumers have a variety of options when it comes to buying groceries, and they continue to choose physical grocery stores to make their purchases. Today, the International Council of Shopping Centers (ICSC) released “The State of Grocery Shopping” survey which found that 99% of adults buy some or all of their groceries in-person.

Consumers visit physical stores personally because they seek immediate access to products (71 percent), the ability to select fresh meat, dairy and produce (70 percent), as well as see product options and select all other items in person ( 69 percent).

“The grocery sector remains relatively unimpacted by the growth in e-commerce sales,” said Tom McGee, President and CEO of ICSC. “Consumers are heavily invested in the types of food they purchase and they want to be able to select the best and the freshest to take home.”

Millennials take a different path to grocery shopping

Keeping true to the Millennial influence of industries, grocery shopping for this demographic looks very different from older generations, for instance:

  • They shop at 5.9 different types of grocery stores, slightly above the average
  • Nearly one out of four Millennials (23 percent) shop three or more times a week for groceries
  • Even when ordering online, 81 percent of Millennials go to the store to pick-up their grocery order
  • A significantly higher number of Millennials buy groceries from convenience stores (74 percent), Amazon/other pure online retailers (67 percent) and high-end supermarkets (66 percent)

“Millennials have been called the foodie generation and blend that with their command of technology and we see some changes in grocery purchasing behaviors, which will drive all grocery retailers to make appropriate modifications in their business model to address the way they shop,” said McGee. “The grocery retailer who wins their share of wallet is the one who delivers an omnichannel experience that meets their desires and demands.”

Online shopping mainly focused on click and collect

When it comes to online grocery shopping, nearly three out of four consumers make purchases online (74 percent) and then pick up their order in store. Only one percent of consumers solely buy their groceries online and never go into a store to buy groceries.

More than four out of ten consumers (44 percent) have their grocery purchases delivered to their home and over one-third (36 percent) have items shipped by mail or courier service to their home. Fifty-four percent of the high-end supermarket shopper who buys online has the retailer deliver the groceries to their home—the highest of any type of online grocery shopper.

Consumers Not Loyal to One Retailer

When it comes to shopping behaviors, consumers on average shop at 5.4 different types of grocery retailers, with 93 percent of people patronizing discount department stores (e.g., Walmart and Target) and 92 percent at traditional supermarkets for grocery purchases. Trailing behind these two retail formats, just over two-thirds of consumers shop at limited assortment food stores (e.g. ALDI and Trader Joe’s) and warehouse clubs (tied at 69 percent).

Of the grocery store formats, traditional supermarkets have the most frequent visitors with 55 percent making purchases at least once per week. The largest shares of infrequent shoppers buy occasionally (every few months)from small, specialty/gourmet food stores (76 percent) and high-end supermarkets (65 percent).

METHODOLOGY

The ICSC State of Grocery Shopping survey was conducted online by Opinion Research Corporation on behalf of ICSC from August 21-23, 2017. The survey represents a demographically representative sample of 1,012 U.S. adults 18 years of age and older.

ABOUT ICSC

ICSC serves the global retail real estate industry. We provide our 70,000+ member network in over 100 countries with invaluable resources, connections and industry insights, and actively work together to shape public policy. For more information about ICSC visit www.icsc.org.

Source:  International Council of Shopping Centers (ICSC)


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