New research from Roy Morgan has found that 31 percent of Australian grocery shoppers are likely to make a purchase online over the next 12-months.
According to Roy Morgan research, more than five million Australian grocery shoppers would consider buying their groceries online in the next 12 months, up by 800,000 from the previous year.
Of those surveyed, Woolworths and Coles shoppers are the most likely to move their shopping online, with one-third (34 percent) of consumers from each chain expressing interest in trialling each brands’ e-commerce offerings. Aldi and IGA customers, however, are less likely to adopt digital channels, with only 26 percent of Aldi and 23 percent of IGA shoppers likely to make the shift.
Despite demand being there, the CEO of Roy Morgan, Michele Levine believes limited offerings by some retailers are stunting the online sector’s growth in the region.
“Despite the online revolution shaking up the face of retail in recent years the grocery and fresh food market has stubbornly resisted the convenience and value for money proposition that online retailing has used to disrupt many other retail categories,” she said in a statement.
“This is not because consumers aren’t interested. Over 5 million Australians would now consider buying groceries online in the next 12 months – just under a third of Australian grocery shoppers.”
Presently, only four percent of grocery shoppers buy their goods online each month, which is equivalent to approximately 600,000 Australians. Looking at Australia’s two biggest supermarkets, five percent of Woolworths’ customers buy online each month, followed closely by Coles, who does four percent of its monthly business online.
This is something that Levine expects to see increase dramatically in the coming years, thanks to Amazon’s new grocery line and the pending arrival of German supermarket chain, Kaufland later this year.
“Although the gap between interest in online grocery shopping and the follow through remains significant, and has persisted for several years, there have been significant developments in the Australian grocery and food markets in recent months and there are more coming,” she explained.
“Amazon launched its online Australian food delivery service late in 2018 and German supermarket giant Kaufland is set to begin opening new supermarkets in Australia later this year. Kaufland also offers an online fresh food service in overseas markets. The marketing power and reach of Amazon is particularly important in driving this disruption as we have seen for over two decades.”
Levine also believes the local market should be paying close attention to what Amazon and international supermarket brands are doing, as they are a good indication of what’s to come down under. Amazon’s purchase of Whole Foods and the rollout of Amazon Fresh in the US are two features that Levine thinks will help convert bricks-and-mortar shoppers into online buyers.
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