Online grocery sales: Successful revival of a failed strategy

Pages: 22
Published: December 2014
Report Code: ML00017-067
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Despite the spectacular failure of Webvan, the US based pioneer of e-groceries, in 2001, entering the online market seems inevitable for grocers who do not want to lose the race for market leadership in the omnichannel world. Innovative, more cost-efficient logistics models are successfully reviving strategies that failed before, changing the traditional grocery sales scene.

Scope

Save time carrying out entry-level research by identifying the size, growth and leading players in the online grocery market

Use market analysis to determine the competitive intensity and therefore the attractiveness of the online grocery market

Find out who are the leading companies in the online grocery market

Reasons to buy

What is the size of the global online grocery market?

Who are the main players in global online grocery market?

What are the pitfalls of the online grocery business and the main reasons behind its reluctant growth?

How can retailers satisfy online grocery shoppers?

Why did Webvan fail?

Companies mentioned

None

OVERVIEW

Catalyst

Summary

REASONS BEHIND RELUCTANT GROWTH OF ONLINE GROCERY SALES

Great growth potential as online sales are only a fraction of grocery business

Online grocery market expected to reach $100bn in 2018

Customers switching to online grocers spend 30% more

Grocery retailers are reluctant to move online

High delivery costs and need for excellent service provide challenges

Online grocery shoppers harder to satisfy

Big failure of a pioneer intimidates potential followers

SUCCESSFUL FOLLOWERS LEARN FROM FAILED COMPANIES, DEVISE STRATEGIES ACCORDINGLY

Learning a lesson from companies that failed

Omnichanel competition forces big retailers to join online grocery race

Gradual expansion in dense areas safer than rapid growth

Innovative delivery models change online groceries game

Distribution centers in cheap areas are lower-cost growth option

Technology advancements slash costs of online grocery business

Influencing customer behavior through use of clever pricing

Finding right tradeoff between attractive range of products and fast delivery

Early bird catches the worm

CONCLUSIONS

Grocery business is up next for disruption

APPENDIX

Definitions

Sources

List of Tables

List of Figures

Pricing

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Single User: $495
Enterprise: $1,238

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