Baking & Snack - May 2020 - 24

57%

E-COMMERCE

49%
46%

Which of the following online grocery delivery services have you used?

2%
5%
3%

THRIVE MARKET

7%
7%
3%

IMPERFECT FOODS

10%
7%

5%

7%

7%

12%

13%
11%

8%

GOOGLE EXPRESS

14%
13%
9%

SHIPT/TARGET GROCERY

13%
10%
15%

POSTMATES

12%
13%
17%

16%
19%
18%

GROCERY & OTHER

PEAPOD

35%
33%

100k or more (N=178)

FRESH DIRECT

WHERE AND HOW
CONSUMERS SHOP CAN
HAVE MULTIPLE FACTORS.

50k to 100k (N=181)

INSTACART

AMAZON

WALMART GROCERY DELIVERY

41%

Less than 50k (N=210)

AlixPartners

than $50,000 a year dominated Walmart Grocery at 41%.
Age also appears to be a factor with online purchasing: AlixPartners noted that 57% of consumers ages
18-34 have increased their online shopping during the
COVID-19 pandemic.
For overall online purchasing in the snack category,
IRI shared similar data with SNAC International.
"The younger generation is fueling the future of
snacks," said Sally Lyons Wyatt, executive vice president
and practice leader, client insights, IRI.
During a SNAC International webinar, Ms. Lyons
Wyatt noted this demographic is purchasing snacks
across all channels. However, e-commerce, with a smaller
base, has seen some big wins, even before COVID-19 hit.
In the 52 weeks ending Dec. 29, 2019, traditional grocery
saw 2% growth. As the largest channel in the snack category, that's a sizeable gain. On the flip side, e-commerce
experienced 32% growth for the same 52 weeks, and that
was nearly two months before shelter-in-place.
As the value propositions at grocery, mass club and
dollar stores gain importance with a massive recession
waiting in the wings, those retailers can leverage clickand-collect as consumers get used to buying from home.
In fact, it's already started, as 2019 closed out with
brick-and-mortar multi-category e-commerce seeing
53% growth.
"And the delivery sites like Instacart and Shipt grew
58%," Ms. Lyons Wyatt said. "And a multi-category sites like
Amazon Prime or Amazon Fresh saw overall 22% growth."

What happens next
Data from IRI during a comparable timeframe supports
the assertions that fear over the COVID-19 spread lured

24 Baking & Snack May 2020 / www.bakingbusiness.com

more shoppers to online platforms. And for those firsttimers, much of their future behavior is riding on that
first experience.
As the panic-buying for the non-consumable household items abates, food purchases could potentially reclaim the front seat in the near future, especially if that
initial experience was a positive one.
But that's a big "if."
The problem has been with the rush to purchase by
consumers across the country shopping from home.
Food Business News reported data from Apptopia that
mobile apps like Instacart, Walmart Grocery and Shipt
more than doubled in downloads during the first half
of March and that the Mercato platform saw a 1,200%
increase in its retailers' account registrations from
February to March.
Surges like that are sure to cause serious bottlenecks.
To control it, some platforms such as Peapod, owned by
Ahold Delhaize, which operates Stop and Shop stores,
added computer server bandwidth to handle the traffic,
according to Food Business News.
On the manufacturing side of things, commercial
bakers and snack producers have their work cut out for
them with increased demand coming from myriad channels and facing even more potential workforce shortages
as the virus extends its reach across the country.
For the time being, year-over-year purchasing data
could become moot in this time of unprecedented uncertainty as medical, business and manufacturing communities work to flatten the virus' curve and resuscitate
the economy.
Until then, e-commerce, with its potential to
skyrocket, remains the channel to watch.

*


http://www.bakingbusiness.com

Baking & Snack - May 2020

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