he over-50s hold the key to
continued growth in online food and grocery shopping, according to new consumer
research from international food and grocery expert IGD.
The Golden Generation report predicts that the value of online
food and grocery shopping will nearly double in size by 2013 to be worth £6.2bn
(up from £3.2bn in 2008). It suggests that older people today remain open
to new ideas and experiences and many enjoy shopping online. However, food and
grocery is lagging behind certain other categories and there are some barriers
to overcome.
The over-50s represent a big opportunity for retailers to increase
online market share if they address a few key issues such as: delivery charges;
ease and security of ordering; and product reliability.
In a survey of just over 1,200 older shoppers (50+) conducted
in the autumn, 27% said that they would start shopping for food and grocery
online in certain circumstances.
* Nearly half (48%) of those considering online food and grocery
shopping would do so if various price issues were dealt with – eg, scale
of delivery charges for small orders, guaranteed same prices as in store, and
the same promotions available
* More efficient and secure ordering was mentioned by 46% – including greater
security against ID fraud, better view of products on the web site and a quicker
ordering process
* Two fifths (39%) were unsure about the reliability of product quality and
delivery – suspecting, for example, that they would receive products with
a short shelf life
Joanne Denney-Finch, Chief Executive, IGD, said: “Many
food and grocery retailers that are operating online have already been proactive
in addressing consumer concerns around sell-by dates, identity fraud and product
reliability, and many do indeed repeat their in-store promotions online. So
the challenge seems to be to raise the level of the game in communication with
the older generation. Once that is achieved, online shopping will receive another
big boost.”
The over-50s punch above their weight – accounting for
51% of national food and grocery spend, while representing just 34% of the population.
They also account for 80% of disposable income in the UK and 60% of national
savings.
Michael Freedman, Senior Consumer Analyst, IGD, and author of
the research, said: “During these tough times, spending by the over-50s
is likely to stand up better than amongst the more heavily indebted younger
generations. So retailers need to be particularly alert to their needs.
“An additional 5.7 million shoppers over the age of 50
are amenable to online shopping for groceries. This represents a big opportunity
for those who can provide reassurance about the threats from ID fraud and that
online shoppers will not be penalised through shelf life, quality of produce
or missing out on offers.”
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