Online grocery sales hold opportunity for produce retailers - The Packer

Online grocery sales hold opportunity for produce retailers

08/22/2013 02:57:00 PM
Amelia Freidline

He said strawberries are a big seller for the company, and Peapod research shows 90% of consumers will choose their store brand based on the quality, rather than price, of berries.

“People are willing to trust us” for the quality of produce selected for them, he said.

A wealth of information about consumer shopping habits is available to online retailers and can be used to grow sales, Stallone said.

“It’s all about mining a lot of great data that is out there.”

He said Peapod also uses digital coupons, such as a deal that offered consumers a free basil pack when they bought tomatoes and fresh mozzerella.

Looking ahead

In a question-and-answer session after the presentations, Stallone said he expects AmazonFresh to be a major competitor in the online grocery marketplace.

“They’re going to be a game-changer,” he said. “They’re going to do what Target and Wal-Mart did for groceries. We expect Wal-Mart to be a big player in the future.”

Bishop sees online retailing as a way to streamline costs and make operations more efficient.

“When you think about taking costs out, disappearance is a huge cost,” he said. “I think digital is a way to get rid of disappearance. If I were in your shoes I’d take a look at what’s realized at retail and what’s produced.”

Schwartzhoff expects growth in retailers’ use of mobile notifications to consumers to increase sales with recipe ideas, stock-up sale notifications and other content.

“I don’t think we’re seeing it quite as much in grocery as we will.”

All agreed that price and convenience are the bottom line for consumers.

“Saving price, saving time are the two currencies we have to worry about,” Bishop said.


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