November 6, 2008

How To Increase Grocery Sales In A Grim Economy

Grocers Must Target Price-Sensitive, High-Spending Online Grocery Shoppers

by Victoria Bracewell Lewis, Lauriane Camus

with Benjamin Ensor

Executive Summary (This is a document excerpt)

Retailers must face facts: In this time of economic downturn, cash-strapped consumers across Europe and North America will increasingly shop around for bargains. Online grocery shoppers are high spenders who will choose low prices over brands and who expect to find value products and promotions online. Retail grocery eBusiness executives need to focus on retaining their existing online customers but must also increase incremental online sales by attracting new shoppers and increasing their product assortments and categories. Grocers should reposition themselves as discounters on the Net — as Tesco has done — to directly compete with discounters that do not sell online.

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