Filed under: Technology, Amazon.com, Food & Beverage, Wal-Mart, Spending
Online shopping has encroached on bricks-and-mortar stores in nearly every aspect. But for one type of retailer, the physical store has so far emerged relatively unscathed.
Although major companies such as Amazon (AMZN) and Walmart (WMT) are experimenting with online grocery ordering and delivery, a PwC study released Tuesday found that only 1 percent of consumers said online shopping is their primary way to purchase groceries. That's despite the fact that the vast majority of the 1,000-plus respondents had access to the option.
The findings make the segment an outlier in a web-centric consumer base, which is expected to drive online retail sales to $294 billion in 2014 and account for 9 percent of all U.S. sales, according to Forrester Research.
You Can't Smell the Fruit
"Although online retail shopping is on the rise, it's not yet the go-to for grocery shoppers, now or in the near future," PwC said in the report. "There's still a major obstacle to overcome: Touching the product isn't possible online."
While this drawback to web shopping extends beyond grocery, it's been particularly troublesome for a category in which consumers like to closely examine items such as fresh produce. According to Forrester, grocery accounts for only 2.2 percent of online sales.
Consumers' preference for traditional grocery experiences isn't limited to online. According to PwC's report, 83 percent of shoppers prefer to buy groceries at traditional grocery stores. (To cater to them, the report suggests "targeted coupons and deals, robust reward programs and convenient, efficient in-store shopping experiences.") That's despite increasing pressure from Walmart, which announced earlier this year that it's expanding its organic food offerings, and it is testing grocery delivery in San Jose, California, and Denver.
The Denver market also allows shoppers to order their groceries online and pick up their orders in-store, without leaving their vehicles. Although Walmart doesn't break out the sales for this program, spokesman Ravi Jariwala said more than 80 percent of shoppers in Denver who have used the service are repeat customers. "More and more customers are beginning to choose pickup," Jariwala said. "We're trying to provide customers more choice."