Progressive Grocer Independent

APR 2016

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TURN YOUR STORE INTO A FLORAL DESTINATION From our farms to your store in 72 hours SRP starting at $2.99 Display included No minimum order required Call Now 1 800 839 7233 www.fresh-2-market.com [email protected] Technology e-Commerce newer systems that were robust yet fexible, understanding how a grocery store operates and how the payment processing works." Commitment Required Retailers should treat the online- shopping sphere much the same as opening another physical location, suggests Rosie's Ambrose. "Te level of time, efort and commitment that a retailer would spend when they open a new location, that's how they need to think about ofering online shopping," he adds. "E-commerce needs to be a fundamental part of the business plan." NoQ's Moran agrees. Moving into e-commerce requires resources, he says, and it needs a signifcant investment to be successful. Tat investment most likely will pay of, however, as e-commerce often changes secondary shoppers into pri- mary shoppers, or it increases the basket size of each shop- ping trip. For example, an average in- store basket size may be anywhere from $20 to $40, depend- ing on the store's location, Moran notes, but the average online basket size is $125. "Your online shoppers are your big weekly shoppers, and by adopting them to online shopping, you are ensuring you gain more of their weekly grocery spend, which will have a positive impact on your bottom line," he points out. Grow Sales Some retailers may be concerned about cannibalizing store sales to grow web sales, but that's not what happens, Ambrose as- serts. Much like the data from NoQ , retailers using Rosie have seen online basket sizes 4.5 times larger than the average in-store basket size. "Every customer that you're convert- ing to shop online, you're increasing your wallet share with that customer," Ambrose notes. "Tey're spending more of their budget with you than with anyone else." Customers aren't spending more than normal on groceries, but what they are doing is eliminating the shop- ping trips that they may have made to other retailers. If they usually went to a big-box store to do a stock-up shop, 1 in 5 U.S. consumers buy groceries online at least once every three months; they spend an average of 16% of their weekly grocery dollars online. 30 | Progressive Grocer Independent | April 2016

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