“Shoppers are becoming more comfortable with ordering online in general, and grocery is a part of that,” eMarketer senior analyst Patricia Orsini said. “A key hurdle, traditionally, for ordering fresh produce and other perishable items online has been delivery time, and the desire to hand-select produce and meat.”
“Retailers have been able to transcend these barriers with click-and-collect models of delivery—order online, pick up in-store,” she added. “And if the shopper is ordering from their regular grocery store, familiarity helps with trust that the products will be the quality they expect. A bad experience, however, could turn consumers off for good, so retailers need to ensure they provide a good experience from day one.”
Robust growth for grocery apps is being fueled by the Amazon/Whole Foods merger and Walmart, which is expanding its grocery delivery from six cites to 100 by the end of the year.
“When Amazon acquired Whole Foods last year, Kroger and Walmart, along with other regional chains, stepped up their online grocery efforts,” Orsini said. “Kroger is investing in a number of initiatives around delivery, including partnering with British company Ocado to build high-tech warehouses where grocery orders will be selected and packed by machines. As retailers figure out how to be more efficient with fulfillment, costs for consumers will come down and another barrier to entry will fall.”