While ultrafast grocery delivery appeals to some consumers, it is not a popular choice for the general population, according to a report published June 15 by Stor.ai, a digital strategy partner for grocery retailers and wholesalers. The report further finds that many consumers also are not willing to pay a premium for the service.
Of approximately 1,000 U.S. consumers surveyed, the majority (57.5%) said they are not willing to pay premium fees for ultrafast delivery. Less than 2% of consumers said they would be “very likely” to pay premium fees.
The report went on to reveal that 26.9% of U.S. consumers said they would “more likely” use online delivery platforms more often if the user experience were improved (among consumers ages 25 to 34, 36% agreed with the statement). More than one in five (22%) said that the greatest inconvenience of using online grocery delivery is out-of-stock items.
"Grocery shopping is undergoing an era-defining transition," Mendel Gniwisch, CEO of Stor.ai, said in a news release. "In an age of instant gratification, there is a common misconception that shoppers crave speedy deliveries; instead, this report has demonstrated that customers prioritize fulfillment."
Other report findings include information regarding in-store grocery shopping and online grocery shopping: 37.2% of U.S. consumers said they exclusively shop in-store; 22.7% mostly shop in-store; 25.5% are more likely to shop in grocery stores that have digital tools (for consumers between the ages of 25-34, that number rose to 32.5%); 2.6% said they use online grocery services exclusively; 23.3% use online grocery services at least once a month; and 7.2% use online grocery services on a weekly basis.
Additionally, participants in the survey were asked what causes the most inconvenience when using online grocery delivery services: 22% of consumers said out-of-stock items, 7.8% said lack of product choice, 5.7% said lack of convenient delivery availability and 4.5% said a clunky interface.
"Grocery retailers today need to focus on the convenience and simplicity that characterize online shopping at its best and fuse these characteristics with the experiential peaks of in-store shopping, especially at local establishments," Gniwisch said. "Simultaneously, retailers need to find ways to implement this hybrid offering to boost their bottom lines and secure a profitable future for their business."