“There’s definitely an issue of quality or freshness perception when shoppers are thinking about placing an online order,” Anderson explains. “The more experienced online grocers like Fresh Direct and Peapod, and even Instacart, have now developed sophisticated approaches to providing daily freshness ratings for produce, so consumers have real visibility into how fresh today’s produce will be.”
Nancy Childs, professor of food marketing and Peck Fellow at St. Joseph’s University in Philadelphia thinks online produce shopping will only succeed “if the online aspect delivers something extra, not immediately available elsewhere. This is akin to the concept of community supported agriculture where participants do not see the produce, but the seasonal contract is more about supporting a local farm for local produce and authenticity.”
An online shopping study by the Retail Feedback Group in Lake Success, NY confirms the hesitance to order produce via the Internet. Among those purchasing supermarket items online in the last year, top concerns included freshness (82 percent), damage (53 percent), too ripe or not ripe enough (46 percent), and limited assortment or variety (18 percent). “For shoppers to embrace online shopping, specifically to purchase produce,” comments Retail Feedback’s principal Brian Numainville, “these concerns need to be overcome.”
Caputo’s Fresh Markets, a specialty grocer in the Chicagoland area, applies a ‘personal touch’ to all Internet orders, according to produce buyer Paul Stallone. “We overcome the concern about ordering produce online by assigning one person to the online orders. This employee selects product as if it were for his/her own use.”
Mobile Pay
Mobile payment systems are gaining traction for their ease of use and ability to slash checkout times. Most enable shoppers to scan items and bag them as they go, hitting the checkout line only long enough to pay and depart. Walmart began testing such an app in 200 stores in 2013, though it did not work with bulk produce. When customers found it too difficult to use, the program was scrapped in 2014.
There is also the much talked about Apple Pay, which already has a sizeable footprint in the greater retail world, including a number of grocers, including both regional and national chains such as Associated Food Stores, BJ’s Wholesale Clubs, Jewel-Osco and Albertson’s, Lucky Supermarkets, Save Mart, Shaw’s Supermarket, United Supermarkets, Wegmans, Whole Foods Markets, and Winn-Dixie.
“Mobile payments are a big in-focus technology right now,” observes Patrick Kent, managing director for CouponFactory in Rogers, AR. “It’s an interesting place because there are three key factors: the brand, the retailer, and the physical mobile and point-of-sale device. Apple Pay took a big leap to help drive consumer adoption, but is still working to attract the biggest retailers such as Walmart and Target.”
By The Numbers
Recent research points to an impressive upside for online grocery shopping. Packaged Facts in Washington, DC reports that online shopping is the industry’s fastest growing channel with double-digit growth, expected to rise to $100 billion annually by 2019.
