Although online grocery struggled against other online verticals prior to 2020, recent growth shows the online grocery vertical is here to stay. As consumers shopped online due to COVID-19, online grocery growth outpaced the rest of the e-commerce segment. Given recent consumer sentiment, Mercator predicts growth will remain strong in the coming years. Grocers were able to match consumer demand by utilizing cost-saving investments and implementing innovative technology to facilitate fulfillment. While consumers expressed the desire to continue shopping online, they also noted pain points with online grocery shopping. Given the new growth in this budding industry, Mercator believes that merchants and payment processors have the ability to gain market share by implementing cost effective fulfillment strategies and facilitating technology-driven payment methods. A new research report from Mercator Advisory Group, Online Grocery: Grocers Meet the Challenge of Digital Demand, but Can They Do It at a Reasonable Cost? explores the trajectory of the online grocery market and the ways in which merchants and payment processors can take advantage of consumer sentiment to cut costs and drive sales.
“The pandemic-driven, stay-at-home lifestyle in 2020 propelled U.S. online grocery sales to record volume as consumers sought ease of ordering, seamless payment, and convenient delivery. As the Great Reopening occurs in 2021, online grocery shopping will remain popular among consumers. Grocery merchants and their payments vendors can benefit from this digital channel opportunity, but must meet the challenges of online order fulfillment,” commented Raymond Pucci, Director, Merchant Services at Mercator Advisory Group, and author of this report.
Highlights of this research report include:
- Market growth of the online grocery vertical
- Merchant innovations that helped bolster growth
- Current consumer sentiment surrounding online grocery
- Primary data results of growing consumer payment preferences
- Future outlook of further innovations in the online grocery vertical supply chain payments space
This report is 17 pages long and has 8 exhibits.
Companies and other organizations mentioned in this report: Ahold Delhaize, Albertsons, Amazon, Incisiv, Instacart, Kroger, Meijer, Nuro, Ocado, Oxbotica, Stop & Shop, Walmart, Whole Foods.
Members of Mercator Advisory Group’s Merchant Services continuous advisory practice have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world’s largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.