Global Online Grocery Shopping:

The Top Retailers and Trends

Leah Kinthaert 2014

Boston Consulting Group says that online

grocery sales will grow to $100 Billion by 2018

Global Online Grocery is now $36 billion

I looked at Supermarket
News Top 25 Global
Food Retailers to try
and get a sense of just
how
much
grocery
retailers are making with
online sales. 15 million new
ones from the US.

2014

Which grocery retailer is selling the most online?

Only Walmart, Tesco,

Costco, and Sainsburys
have released their
annual online grocery
sales figures.
Additionally, Ahold has
released their first
quarter earnings for
2014.

Leah Kinthaert

If 3% of all grocery sales are online, then

2014

Conservative estimates say that

1-3% of all grocery sales are
online.

Using the 3% figure, I used 2013 revenue,

(when available) to estimate online grocery
sales for the 25 top grocery retailers in the
world.

Leah Kinthaert

Using the Conservative 3% Estimate,

Online Sales for the top 25 Grocers
Totals $32 billion

2014

Boston Consulting Group says total

online grocery sales were $36 billion
in 2013. That means two things:

$4 billion of grocery sales are coming from

retailers who are not primarily grocers
(Amazon?) and the 3% estimate may really
be just that conservative!

Leah Kinthaert

Which of the top 25 Global

Grocery Retailers Sell the Most
Online?
Estimated Online Grocery Sales
2013 Online
Grocery Sales

Safeway Ahold Sainsbury's

5%
Leclerc 1%
6%
7%
Walmart
15%

Intermarche
Woolworths
0%
1% Casino
0%

Walmart and
Target tie at the
top.

Auchan
6%
Seven & I
Rewe
0%
4%
AEON
0%

Kroger is second, with

strong numbers from
Shwarz, Tesco,
Carrefour, Metro, Leclerc,
Ahold, Auchan, Rewe
and Sainsburys.

2014

Edeka
1%

Tesco
7%
Carrefour
7%

Target
14%
Metro
6%

Kroger
9%

Costco
3%

Shwarz
7%

Leah Kinthaert

Online Grocery Retail is Inevitable

Social is not in person anymore

Skipping a step
2

1
Many naysayers spout that
shoppers will not want to
miss the social experience
of in-store shopping. They
are missing the point that
socializing has become
predominantly an online
experience.

2014

Think about it

3
As emerging countries
populations move into
the middle class, there is
evidence that in some
developing regions of the
world, the supermarket
that westerners are
familiar with may never
exist. Instead those who
once shopped at rural,
small shops will shift their
shopping to online.
Access to global products
via mobile has
revolutionized tastes and
created new needs.

Whether a working mom or

stay at home mom, a trip to
the grocery store with a
child - and this transcends
cultures and countries - is
never a fun outing. Unless
something radical happens
and men begin to do the
grocery shopping
worldwide, once online
grocery shopping becomes
available to moms, it will
take hold and theres no
looking back.

Leah Kinthaert

Global Online Grocery Landscape: by Country

From A.T. Kearney's The 2013 Global Retail E-Commerce Index

China
With a population of 1.36 billion, 517 million Internet users, and 220 million online shoppers, China's $64 billion online
retail market will expand over the next five years to $271 billion. This expansion is due to infrastructure improvements,
increased Internet access, and a rising middle class. Chinese shoppers purchase online because of price, promotions,
and broad assortments. 54% percent of online shoppers made more than 20 purchases in 2012, up from 41% in 2011.
Sales will increase as more rural Chinese gain Internet access and infrastructure gaps are addressed. Food and drink
plus beauty and personal care items account for about 7% of all online sales right now in China.

Japan
Japan has 100 million Internet users, 75 million online buyers, and $52 billion in online sales. Japan's has an advanced
financial infrastructure which allows consumers to make online purchases efficiently, additionally it has superior logistical
infrastructure which enables same-day delivery for many online orders. Japan's online retail market is expected to reach
$80 billion over the next 5 years. Japan has the ultimate connected consumer many with more than one mobile device,
connecting with their computers, cell phones, and tablets. Food and drink plus beauty and personal care items account for
about 18% of all online sales right now in Japan.
US
United States has the world's largest online retail market ($177 billion today and expected to nearly double by 2017), an
advanced infrastructure, and a rich, large, and dynamic consumer base accustomed to buying online. Almost 250 million
Americans use the Web, and 177 million routinely purchase goods online. Sixty-one percent of American mobile phone
subscriptions are for smartphones, and 34 percent own a tablet. Food and drink plus beauty and personal care items
account for about 5% of all online sales right now in the US.
Brazil
At $11 billion in size, Brazils eCommerce market is projected to grow at a compound annual growth rate of 20 percent
over the next 5 years. The country has 90 million Internet users, 57% of them buy online. Only 45 percent of Brazilians
have Internet access, but as rural customers get online, sales will rise. The online retail market is expected to be $28
billion by 2017. Food and drink plus beauty and personal care items account for about 7% of all online sales right now in
Brazil.

2014

Leah Kinthaert

Global Online Grocery Landscape: by Country

From A.T. Kearney's The 2013 Global Retail E-Commerce Index

UK
82% of the UK is on the internet, 80% of them buy products online. Of online buyers, 45% use. The UK's online retail
market is worth $48 billion and expected to grow to $73 billion by 2017. Food and drink plus beauty and personal care
items account for about 16% of all online sales right now in the UK.
Germany
Germany has a $27 billion online retail market is becoming a global force as its well-connected population 83% of
Germans are online and 77% buy online. Their online retail market is expected to grow 12% yearly through 2017faster
than any other country in Western Europe. Food and drink plus beauty and personal care items account for about 4% of
all online sales right now in Germany.

Russia
Russia's has a fast-growing online market of $10 billion annually. The compound annual growth rate is 18% which is
attracting both both domestic and foreign retailers. They have Europe's largest online population with about 70 million
users and 33 million online shoppers. For Russians outside of the bigger cities, online retail offers access to brand-name
goods that local shops do not have. Food and drink plus beauty and personal care items account for about 6% of all
online sales right now in Russia.
France
France has a $26 billion online retail market driven by experienced online shoppers. With 50 million Internet and 35
million routine online buyers, it is predicted they will spend more than $36 billion online by 2017. 15% of French
households buy groceries online and select the drive-through pickup option, known as the "Drive Model," to have their
purchases loaded into cars at a store or warehouse. Today, the Drive Model represents 2.8% of France's overall grocery
market and it is expected to grow to 20% by 2020

2014

Leah Kinthaert

Global Online Grocery

Still in Nascent Phase

Online grocery retailing is still in a nascent phase across most of the world, but as convenience
and accessibility to consumers grow, there is no holding it back.

80% of South Koreans purchase groceries online

South Korea is a great example to see where online grocery is going, as close to 80% of grocery
shoppers there regularly purchased grocery products online in 2012, and the frequency of
purchasing increased to nine times a month from seven times a month in 2011. (Nielsen)

Digital Footprint to Expand in 2014

2014

Most of the major grocery retailers see opportunity in online retailing and are investing in online
strategies. Consequently, grocery retailers digital footprint will expand in the year ahead as they
identify new ways to engage and sell profitably through online channels.

Leah Kinthaert

Overall eCommerce Sales by Category

2014

Leah Kinthaert

Brands absolutely need an online retail

presence
John Fang, China Market Research Group

Fang says: Brands absolutely need an online retail

presence to reach their customers where they are
looking to buy. And increasingly, retailers need to be
accessible on mobile devices, as purchases are
starting to shift from home computers to phones and
tablets.
A new study from Telecom Watch shows that rural
India, for example, has more mobile users than urban
India. Students and housewives lead the pack in
usage. Mobile phones give female consumers and
rural residents unprecedented access to new products,
in many cases online is the ONLY place where certain
products are readily available.

2014

Leah Kinthaert

Quick Look: Global Online Grocery

1

3 Billion internet users

2.3 Billion are mobile users. This number is expected to grow to 5.13
billion mobile users by 2017. (eMarketer)

2/3 of these users are from the developing world. People from developing countries
make up for more than 90% of those who are not yet using the Internet.

More than 1/3 of global consumers say they are already ordering groceries online for
home delivery, with more than half willing to try if it becomes available. (Nielsen)

2014

Leah Kinthaert

The End

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