An additional 5.7 million shoppers over the age of 50 are amenable to online shopping for groceries. This represents a big opportunity for those who can provide reassurance about the threats from ID fraud and that online shoppers will not be penalised through shelf life, quality of produce or missing out on offers.
United Kingdom (Vocus) December 8, 2008
The over-50s hold the key to continued growth in online food and grocery shopping, according to new consumer research from international food and grocery expert IGD.
The Golden Generation report predicts that the value of online food and grocery shopping will nearly double in size by 2013 to be worth £6.2bn (up from £3.2bn in 2008). It suggests that older people today remain open to new ideas and experiences and many enjoy shopping online. However, food and grocery is lagging behind certain other categories and there are some barriers to overcome.
The over-50s represent a big opportunity for retailers to increase online market share if they address a few key issues such as: delivery charges; ease and security of ordering; and product reliability.
In a survey of just over 1,200 older shoppers (50+) conducted in the autumn, 27% said that they would start shopping for food and grocery online in certain circumstances.
- Nearly half (48%) of those considering online food and grocery shopping would do so if various price issues were dealt with - eg, scale of delivery charges for small orders, guaranteed same prices as in store, and the same promotions available
- More efficient and secure ordering was mentioned by 46% - including greater security against ID fraud, better view of products on the web site and a quicker ordering process
- Two fifths (39%) were unsure about the reliability of product quality and delivery - suspecting, for example, that they would receive products with a short shelf life
Joanne Denney-Finch, Chief Executive, IGD, said, "Many food and grocery retailers that are operating online have already been proactive in addressing consumer concerns around sell-by dates, identity fraud and product reliability, and many do indeed repeat their in-store promotions online. So the challenge seems to be to raise the level of the game in communication with the older generation. Once that is achieved, online shopping will receive another big boost."
The over-50s punch above their weight - accounting for 51% of national food and grocery spend, while representing just 34% of the population. They also account for 80% of disposable income in the UK and 60% of national savings.
Michael Freedman, Senior Consumer Analyst, IGD, and author of the research, said, "During these tough times, spending by the over-50s is likely to stand up better than amongst the more heavily indebted younger generations. So retailers need to be particularly alert to their needs.
"An additional 5.7 million shoppers over the age of 50 are amenable to online shopping for groceries. This represents a big opportunity for those who can provide reassurance about the threats from ID fraud and that online shoppers will not be penalised through shelf life, quality of produce or missing out on offers."
Notes to Editors:
1) IGD provides information, insight and best practice to the food and grocery industry worldwide. Golden Generation is available from IGD at http://www.igd.com/goldengeneration
2) Research based on interviews with 1,211 people in Autumn 2008
For more information or for interviews contact: Jon Neal, Communications Manager, IGD.
DD: +44 (0)1923 851916. M: +44 (0)7770 640448. E: jon.neal at igd dot com.