Like all grocery sectors, fresh produce has seen a steady move to online over the past decade. E-commerce now accounts for 7.1 per cent of sales of fruit and vegetables, and growth is ahead of the total market.
However, this growth has been slowing, and the current rate of eight per cent compares to 14 per cent in 2015. This reflects a lower rate of new shopper penetration and shows how much of an established market online shopping has become.
And yet there is much more to do for fruit and veg. Less than a quarter of shoppers are buying produce online, putting it behind the total grocery market where 28 per cent of consumers shop on the net. The tactile nature of fresh produce plays a role here – browsing in person makes it easier to select the biggest bell pepper on the shelf or check apples for bruises before buying.
For fresh produce to keep pace with the rest of the field, there are lessons to be learned from in-store retail. E-commerce would benefit from embracing customer engagement to encourage shoppers to purchase a greater variety of items. Our figures show that consumers buy 21 different fresh produce products online during the course of a year, compared to 47 in store. Retailers with digital platforms should consider this a call to arms. Online retailers need to ensure they maximise cross-promotion during key seasonal events. This can be as simple as a ‘why not add oranges and mint for the perfect Pimms garnish’ pop-up when a shopper buys strawberries during the summer.
Retailers should also take advantage of products which sell well on the web. Everyday items like apples, bananas and potatoes are all popular online and the market can accentuate more traditional produce by experimenting with pack sizes. Potatoes are already popular in bigger bags thanks to the convenience of having them delivered to the door. Retailers should continue to promote larger packages as well as smaller single-portion packets which are popular in store.
Traditional products outsell less common items such as soft fruit and citrus, suggesting that what’s out of sight is out of mind. However, by making less frequently bought goods more prominent, retailers can narrow the gap between online and in store.
Online retail has already had a big impact on produce sales but while the days of quick growth are over, there’s still plenty to play for.
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