Florida Food Retailers Embrace Online Shopping
In partnership with: Florida Department of Agriculture and Consumer Services
As COVID-19 halted nearly all daily activities, one major aspect of life remained – grocery shopping. Retailers reexamined their in-store shopping experience as well as e-commerce capabilities. In response to growing public safety concerns and consumer demand, grocery retailers expanded online shopping options and saw a significant increase in e-commerce market share. This sudden shift to online grocery shopping may change the grocery retail market indefinitely.
Online Ordering
With more people staying at home, there has been a significant change to online grocery shopping with an emphasis on mobile apps. Two years ago, online grocery shopping only held a 3% market share and struggled to maintain market visibility. By mid-2020, the market share had more than tripled to 10%. A September 2020 survey of 60,000 shoppers indicated that only 24% had shopped online for groceries two years ago; however, 43% of surveyed shoppers responded that they have purchased online groceries within the past six months, indicating a 79% increase in online shoppers since the pandemic began. Consumers now have access to a variety of online grocery platforms, and many of these platforms offer incentives to retain both new and loyal consumers. In a comparison of online grocery app downloads from February to mid-March of 2020, an increase of at least 120% could be seen across grocery shopping apps such as Instacart, Walmart Grocery and Shipt. Conversely, food delivery apps such as Grubhub, Uber Eats and DoorDash saw declines in downloads and app use as consumers found cooking at home was both safer and cheaper.
Adapting to New Challenges
The surge in online grocery shopping left little margin for error as suppliers dealt with implementation and execution. During the onset of the pandemic, many early adopters of online grocery shopping experienced difficulties that stemmed from product availability and delivery. Due to disruptions in the supply chain, grocery retailers struggled to manage stock availability and the influx of delivery requests as many consumers, both online and in-store, bought products in bulk. As a result, many online shoppers were unable to schedule an order, received incomplete or late orders, and sometimes never received their order. After a few months, retailers resolved issues, and though grocery e-commerce growth has skyrocketed, consumers aren’t abandoning the opportunity to shop in stores. Seventy-eight percent of surveyed shoppers stated that they still prefer to shop in the store or pick up groceries, indicating that the accelerated online grocery growth may stall once consumers are able to shop in stores again regularly. It is apparent that moving forward, consumers will have the opportunity to choose their preferred grocery shopping channel, whether that remains on an online platform or in stores.
See more: 6 Best Places to Buy Groceries Online
Positive Change
The challenge now for retailers is to solidify their stake in the e-commerce grocery market and retain consumers who will continue to shop online after the pandemic. A few retailers have designated distribution centers solely for the purpose of fulfilling online orders. These new distribution centers also offer an opportunity to improve the quality and freshness of products that are delivered to consumers.
Florida agriculture is well positioned to benefit from the online grocery boom. Consumer behavior is showing a shift toward home-cooked meals using fresh products and an interest in knowing where food comes from. These habits have increased awareness and support among consumers for local products, a sentiment that aligns with the Florida Department of Agriculture and Consumer Services’ mission to increase both support of Florida farmers and brand recognition of “Fresh From Florida” products among consumers.
COVID-19 has brought challenges to the grocery retail and agricultural space this year, but opportunities lie in the horizons beyond. Florida farmers continue to work tirelessly to get fresh products in our stores, and retailers continue to improve the grocery shopping experience whether online or in person.