business news in context, analysis with attitude

The NPD Group is out with a new study saying that “adoption of online grocery shopping is moving at a slower pace than other consumer categories, but it’s growing with about 10 percent of U.S. consumers” now regularly buying groceries online. However, the study also notes that 99 percent of all grocery shoppers still use bricks-and-mortar stores.

Some context from the study:

“Consumer preferences when shopping for foods and beverages and logistical challenges are the primary reasons why consumers haven’t gone all in on online grocery shopping.  Wanting to pick out their own fresh items was the top barrier to their shopping online for groceries, followed by not wanting to pay a delivery fee. Many consumers (46 percent) who are lapsed online grocery shoppers or have never shopped online like that walking through a store remind them of what else they need.  And, even though one of the key benefits of online shopping is speed, 46 percent of consumers who aren’t online grocery shopping enthusiasts feel it’s faster to go to the store.”
KC's View:
Seems to me that one thing is true for both online and bricks-and-mortar retailers - that in order to succeed, they each have to find ways to create differential advantages and compelling experiences. They have to find the gaps in the competitions’ offerings and figure out how to fill them. And they have to create evolving narratives that define how they fit into people’s lives.

One thing I know is that there is plenty of room for both models in people’s lives. What I also know is that business models that don’t differentiate themselves and continue to grow and improve their relevance are doomed, regardless of whether they are physical or digital.