Consumers Prefer Physical Over Digital for Groceries, Finds ICSC

Despite growth in digital, consumers continue to choose physical grocery stores to make their purchases, according to the latest survey by the International Council of Shopping Centers (ICSC). “The State of Grocery Shopping” found that 99 percent of adults buy some or all of their groceries in person.

Consumers visit physical stores over grocery shopping online, according to ICSC’s survey, primarily because they seek immediate access to products (71 percent); prefer the ability to select fresh meat, dairy and produce (70 percent); and like to see product options and select all other items in person (69 percent).

“The grocery sector remains relatively unimpacted by the growth in e-commerce sales,” says Tom McGee, president and CEO of ICSC. “Consumers are heavily invested in the types of food they purchase and they want to be able to select the best and the freshest to take home.”

Millennials take a different path to grocery shopping

ICSC’s survey also found that grocery shopping for Millennials looks very different compared to older generations. For instance:

“Millennials have been called the foodie generation and blend that with their command of technology and we see some changes in grocery purchasing behaviors, which will drive all grocery retailers to make appropriate modifications in their business model to address the way they shop,” says McGee. “The grocery retailer who wins their share of wallet is the one who delivers an omnichannel experience that meets their desires and demands.”

Online shopping mainly focused on click and collect

When it comes to online grocery shopping, 74 percent of consumers make purchases online and then pick up their order in store. Only 1 percent of consumers solely buy their groceries online and never go into a store to buy groceries.

More than four out of 10 consumers (44 percent) have their grocery purchases delivered to their home and 36 percent have items shipped by mail or courier service to their home, while 54 percent of the high-end supermarket shopper who buys online has the retailer deliver the groceries to their home—the highest of any type of online grocery shopper.

Consumers not loyal to one retailer

When it comes to shopping behaviors, consumers on average shop at 5.4 different types of grocery retailers, with 93 percent of people patronizing discount department stores, like Walmart and Target, and 92 percent at traditional supermarkets for grocery purchases.

Trailing behind these two retail formats, just over two-thirds of consumers shop at limited assortment food stores and warehouse clubs (tied at 69 percent).

Of the grocery store formats, traditional supermarkets have the most frequent visitors, with 55 percent making purchases at least once per week. The largest shares of infrequent shoppers buy occasionally (every few months) from small, specialty/gourmet food stores (76 percent) and high-end supermarkets (65 percent).