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Online Grocery-Shopping Expands Among Select Demographics

July 7, 2010

Who are these shoppers, and what do their choices reveal about the grocery industry overall?

When you hear the words “online shopping,” you typically think of consumers buying items like books, clothing and electronics. “Groceries” probably does not appear on that list, but survey data from FGI Research suggests that perhaps it should.  A number of consumers are buying their milk and bananas online, whether they get their order shipped to them or pick it up in-store.

This reflects a broader trend in retail: the growth of online shopping, which has revolutionized the industry and the way people shop.   In 2007, the U.S. Census Bureau reported that e-commerce represented 44.6% of all retail sales, bringing in approximately $89 million.  The stage is set for growth in Internet retail, and consumers are making a habit of buying goods online. As the options for buying groceries expand, it follows that more consumers will make that purchase online too.



Store Brands Gain Acceptance and Momentum with Today’s Consumer

April 12, 2010

As perceptions of quality improve and economic challenges persist, 25% of consumers plan to buy more store brands.

Popular association with poor quality and “looking cheap” have often kept store brands (private label products) from enjoying broad acceptance and sustained market share. There is even a lingering perception among some consumers that “store brands” equate to “generics,” an antiquated association to be sure. Yet store brands also have a universal reputation for saving consumers money. Data from a recent FGI study shows that 97% of US consumers believe “store brands cost less than national brands.”

Our findings suggest that consumers are poised to expand their purchases of store brands. Not only do a third of those surveyed buy more store brands than they did a year ago, but 1 in 4 plans to increase his or her store brand purchases in the future. As this CBS report reveals, even brand loyalists are open to switching to store brands, especially when the perceived quality is as good as, or better than, the national brand.



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