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The Next Five Years in Online Grocery: Going Mainstream, Fast

Amid the pandemic, adoption has accelerated by two to five years in the US and Western Europe, according to new Bain research.

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The Next Five Years in Online Grocery: Going Mainstream, Fast
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Demand for online grocery has surged during the pandemic, outstripping the delivery and in-store collection capacity of many grocers. But what of the next five years? We modeled three 2020–25 scenarios around variables such as how quickly a cure or vaccine is found and the quality of the customer experience. In all three scenarios, penetration is poised for a marked acceleration. This poses a challenge to the industry. Online grocery is usually less profitable than in-store transactions. To avoid damaging dilution, executive teams need to act now to improve the economics of the channel.

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How to Ramp Up Online Grocery—without Breaking the Bank

Now that Covid-19 has accelerated demand for deliveries and pickups, grocers urgently need e-commerce to start paying its way.

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