Online grocery sales 'will double in five years'
A new IGD report on online sales, which is due for publication in mid-October, will demonstrate that the market for online sales is progressing as expected, said James Trust, senior business analyst at the IGD.
While unable to preview the latest figures, Trust said growth in the online market was "still in line" with the outlook predicted in the IGD's previous report, published earlier this year. That showed a 21% increase in online sales during 2010 and suggested that 27% of UK food firms would consider building their own e-stores.
"This is still very much of interest, with growing opportunities for the suppliers we've been speaking to and a significant annual increase in the number of supplier stores and the proportion of firms considering setting up e-stores," Trust said.
Food producers remain attracted by the infinite 'virtual' space an e-store can give their products (in contrast to the limited shelf-space they must often fight for in the physical retail environment) and by the opportunity to develop more meaningful relationships with consumers based on high individual service levels, he said.
The global outlook for online grocery sales remains very positive, added Trust. "Suppliers are clearly interested in this. The forecast is for online sales to be the fastest growing channel across Europe in the next five to 10 years, with a doubling in UK online sales in the next five," he said.
His optimism is borne out by those already engaged in online grocery sales, which includes many large and small brand owners.
Stuart Ferretti, owner of The London Fine Meats Company, said his online business had grown "quite considerably" in the last 12 months despite the economic downturn and described the outlook as "bright".
John Taylerson, md of Taylerson's Malmesbury Syrups, which are used to flavour coffee, meanwhile, said his firm's online sales were growing by about 50% year-on-year and he believed this would continue in the future.
