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Retail Intelligence: UK online grocery sales to reach almost £15 billion by 2018

September 9, 2013
Written By

Kantar Worldpanel reports that eCommerce is the fastest growing channel for UK grocery, with sales in May 2013 up 19% over the same period last year. And new figures from retail analyst IGD predict that online sales will more than double in value to almost £15 billion in 2018, as consumers become more reliant on smartphones and tablets. 

The predicted 124% growth in online grocery shopping presents a significant opportunity for supermarkets – but will also result in increased price competitiveness amongst the grocers.

Kantar Worldpanel’s analysis shows that online is the fastest growing channel for UK grocery sales, increasing revenues over the past 12 months by 18.7% and now accounting for just over 5% of grocery sales in the UK.

The analysis reveals that eCommerce plays a much bigger role for households with a combined income of over £60k, taking a 10% share of their grocery spend. Online also accounts for a significantly larger share of higher-value baskets, with eCommerce representing 12% of sales made for baskets over £60 compared with only 1% for baskets under that amount.

According to the latest IGD Shopper Vista study, online and convenience retailing are reaping the rewards of our changing lifestyles. As more of us own smartphones and tablets, online grocery shopping is becoming increasingly popular, with retailers also introducing more convenient and flexible services – such as temperature controlled click and collect lockets – for shoppers to pick up their groceries at a time and place that suits them.

With more shoppers wanting the convenience and flexibility that online grocery shopping delivers, analysis from eMarketer concludes that UK consumers will be more likely to do bigger shops and therefore drive up the share of online sales. As Iceland, The Co-operative and Morrisons launch their eCommerce operations in the coming months, online grocery shopping looks set to grow significantly.

However, as more shoppers choose to go online for their grocery shopping, supermarkets will need to ensure they are competitive on price to attract the value-driven consumer. Therefore understanding how they benchmark on price in order to deliver the greatest value to shoppers will be increasingly key for supermarkets.

Find out how three of the top five UK supermarkets with an eCommerce presence are working with Profitero to attract shoppers and drive sales. Contact us at or visit Web based competitor monitoring for retailers and brands

About Profitero

Profitero is the leading global provider of online competitor pricing data. We provide both bricks & mortar and online retailers with their competitors’ prices, promotions and full product assortment information. Profitero’s accurate and timely competitor intelligence enables our customers to make better informed and more profitable pricing decisions, helping them to increase sales as well as margins.

To discover how Profitero can help make your pricing smarter, contact us at or visit

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