Fresh and local is where it’s at

The Food, Groceries & Liquor sector is enjoying one of the fastest growths in online shopping. It’s very much a homegrown phenomenon with 90% of online sales going to domestic merchants, the highest domestic share out of all sectors.

Total online spend however, at $736 million only contributes to 3% of the total sector spend.

In total, the online spend for this sector grew by 18%, and transactions grew by 17%. This growth was driven by domestic sales. Spend domestically grew by 23%. This was driven by a 29% increase in transactions as well as an increase in shoppers. Basket size, however, dropped from 2017 meaning domestically more people were buying less, more frequently.

Internationally it was a completely different story. Spend decreased by 11% and was the only area to experience decline in spend this year. This was driven by a decrease in transactions of 25% versus 2017. The basket size did however increase 19% for international transactions, meaning that while shoppers were purchasing a lot less frequently, they were stocking up when they did make a purchase from overseas. 

The highlights:

The highlights
Growth in online spend
Growth in online transactions in 2018
Of sales were with domestic retailers
Average basket size was consistent with 2017
Online basket sizes were
Higher than offline baskets
Spend by rural shoppers under 45 years old has grown
Shoppers under 45 were spending
more on food, groceries & liquor online
Of online shopping happened over the weekdays with Tuesdays being the most popular
Did you know
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Did you know?

Top reasons customers say they purchase online in Food, Groceries & Liquor, rather than in a traditional store:

  1. Easier to go online than in store (49%)
  2. Easier to search and buy (40%)
  3. I can compare prices more easily (34%)
  4. More choice (29%)

Source: NZ Online Shopper Survey 2018

At $138, the average online basket size was 267% higher than the offline basket size and we’re now making one big weekly purchase, mainly on Tuesdays.

Shopping online in this sector is gaining real traction with the under 45 year olds who are now spending 27% more on Food, Groceries & Liquor online. While urban and metro customers make up 85% of shoppers, the number of rural customers is increasing and spend amongst young rural shoppers is up a massive 45%.

To put it into perspective, this sector is now worth more than Health & Beauty and Entertainment, Books & Stationery combined, with 18% of online spend. Close to 734,000 Kiwis are turning to online to purchase their food and favourite tipple.

Did you know
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Did You Know?

Most purchases in Food, Groceries & Liquor are from local stores. Shoppers are buying groceries, meat, vegetables, drinks, alcohol, chocolate and fruit. For these shoppers, the most important things when purchasing online are:

  1. Range of goods (89%)
  2. Cheapest price (78%)
  3. Ability to use Click and Collect (41%)
  4. Delivery charges (40%)
  5. Lots of delivery options (33%)
  6. Great customer service (25%)
  7. Has a permanent store in New Zealand (23%)

Source: NZ Online Shopper Survey 2018

Continue to:   Homewares & Electronics
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