Why Amazon will struggle to get the UK to take a Fresh look at online grocery shopping

Despite Amazon’s logistical excellence, there is a strong proportion of consumers who are reluctant to shop online for food. This means Amazon’s success will have to come from enticing shoppers away from established grocers, rather than from new participation in the market.

A GlobalData survey found that 70.1% of consumers prefer to shop in physical stores while 35.6% said that none of the options would make them shop online.

This is compounded by the fact that the UK online food and grocery market is forecast to slow (from 16.2% in 2012 to 6.8% in 2022). Fewer consumers switching to some or all of their grocery shopping online means the grocers will have to work even harder to attract and retain customers.

Delivery costs remain the main barrier to the uptake of online groceries (40.7%), but the growth in consumer desire for fresh produce means they are reluctant to order online, preferring to pick items themselves. Amazon must advertise a guarantee of product freshness in online deliveries, ensuring delicate items such as fruit and vegetables are not damaged in transit.

The discounters could yet hold a key position if they decide to enter the online market with 14.5% of consumers stating this would make them more likely to buy online. This would pose a threat to Amazon, which is focussed at the value end of the market.