Grocery stores to target online sales

CONSUMERS will show increasing interest in online grocery shopping over the coming years, according to new analysis from Bord Bia.

Analyst Eimear O’Donnell of Bord Bia’s small business team predicts that an increasing number of time-conscious, convenience-seeking Irish shoppers will make the same lifestyle choice with food as they have already made in relation to other forms of online retail. Irish food manufacturers are already gearing up for a shift towards online grocery trends.

Ms O’Donnell said: “There has been good growth in internet and broadband penetration in Ireland (over three million internet users).

“Irish consumers are increasingly changing their shopping habits with 35% of shoppers spreading their shopping across a number of shops to get the best value more often.

“In addition, some 4% of consumers are buying online more often, and in the Bord Bia 2010 Feeling the Pinch 4 report, an average of 56% of consumers regularly use comparison websites to save money.”

Bord Bia’s analysis suggests that route to market will remain a challenge for many food manufacturers.

As the retail landscape remains challenging and with consumers increasingly looking for convenience and flexibility, along with the ever-present focus on price and value, Bord Bia advises Irish manufacturers that they need to adapt business models in order to thrive in this landscape.

In the latest edition of Bord Bia’s Food Alert, Ms O’Donnell tells Irish food businesses that overseas studies say for new sales opportunities, the internet is fast becoming an important shopping channel.