IGD predicts major growth for e-commerce grocery revenues

Tuesday, October 29, 2013 - 11:37 by Simon Crisp

British consumers are expected to spend about £9.5 billion buying their groceries online in 2015, according to new figures published by IGD.

In 2013, on the other hand, this total will only hit £4.8 billion, which means analysts believe that the market is in for a significant period of growth in the next 24 months, according to Retail Times.

Today about 3.2 per cent of the UK's market for grocery shopping is made up of e-commerce sales, but this will hit 5.2 per cent in 2015.

IGD spokesperson, Joanne Denney-Finch, said that the increased usage of sites offering safe shopping online for placing grocery orders was seen as a phenomenon of modern retail, as well as being one which has much more room to expand in the coming years.

She pointed out that while even £9.5 billion in sales will make e-commerce grocery orders a small part of the overall market, this is the area in which the most significant growth is anticipated.

Seven per cent of consumers questioned in the IGD survey said that they are using e-commerce platforms to purchase the vast majority of their groceries which they require for day to day operation.

Over a tenth of respondents said that they will be increasing the amount which they use online grocery shopping tools, with the under 35s being the biggest supporters of this type of service.

Retailers including Tesco and Sainsbury's are already well established on the e-commerce market, with 2014 set to see the launch of the first online ordering service from Morrisons, which could mix things up a bit and inject further competition. Hopefully, this will lead to lower prices and cheaper delivery charges for those consumers across the country who do not want to shop in-store.