Meet the “brick & order” grocery shopper; a very important customer for grocers to know in 2018 and beyond

A new term, the “brick & order” shopper, is emerging to refer to grocery shoppers who order online or by phone and then pick up their purchases at the store.

Craig Geiger, Senior Manager for Insights & Planning for the Kellogg Company, says new research conducted for the CPG giant shows that 39% of retailers that offer online grocery purchasing report that during the pickup trip to the store the customer also shops inside the store.

“That is a basket plus. If your product is in an impulse category, you may still be in the basket for an online shopper,” Geiger said in a presentation he made at the recent Shopper Insights & Retail Activation conference in Chicago, adding that more than half (51%) of grocery sales are influenced by digital, and that it will increase.

The “brick & order” shopper is a customer segment “brick & mortar” grocers need to focus pay close attention to because by combining an online grocery offering with digital grocery technology in-store, grocery retailers can build a highly competitive offering as an offensive move in general plus as a defensive move against giant e-commerce-focused retailers like Amazon.

“It’s still a very brick world, but it’s becoming an order world,” Gieger said in his presentation at the conference.“There’s been a big ramp-up in the online share of food and beverage category spending.”

He told retailers and CPG company executives at the conference they have “an extraordinary opportunity to connect in a world incredibly interesting. Inspire and incite with insight to create some change.”

Geiger shared the following statistics about online shopping in his presentation:

• 9% of consumers report using an online service for groceries every week.
• 19% use an online service two to three times a month.
• 14% use it once a month.
• 16% use it once every two to three months.
• 9% use it less often than every two to three months.
• 58% of online grocery shoppers use more than one online service to purchase food and groceries.
• 64% of online shoppers said they would switch to an online service that provides a better online shopping experience.

Customers are driven to buy groceries online by insights and emotions, according to Geiger. “Brick & order shoppers say online shopping is a better experience because they have access to more product information and it is a stress-free experience,” he said.

According to Kellogg’s research, A stock-up trip was the primary reason for buying groceries online by 25% of online shoppers in 2017; this grew to 38% in 2018, he noted in his presentation. The top trial drivers to encourage online grocery shopping are incentives such as coupons, coupled with consumer curiosity and convenience/availability.

But other consumers still prefer the brick-and-mortar store, Geiger says. “They feel they can get better quality produce and will enjoy the shopping experience more in an actual store. They appreciate free samples and the exposure to new products. In fact, recent research found that 61% of consumers still find shopping in a store enjoyable and 57% say grocery shopping is a fun day out for the family.”

Shipping costs are one of the key barriers to online grocery shopping, he pointed out in his presentation. “Consumers want free shipping. Also, 55% of shoppers expressed concern about food freshness in an online shopping environment, and 47% mentioned the preservation of frozen foods could be an issue.”

When consumers shop online for groceries, 37% have a list of items in mind; 36% will still make impulse buys; and 30% have a written list, Geiger said. He added that “35% will write a review of their online shopping experience on social media and 34% said they purchased a digital gift card at a retailer.”

The “brick and order” shopper offers a real opportunity for physical grocers, including independents, to do what they do best — in-store merchandising and execution — and combine it with a digital and online retailing presence.

We specialize in partnering with brick & mortar grocers at iGrab.it, putting retailers online using our platform and artificial intelligence-powered app. Our platform also offers a myriad of opportunities to tie online grocery in with offline. Digital is the new shopping cart in many ways.

We’re available to discuss how we can help grocery retailers target the “brick & order” shopper as a way to grow business, build brand value, and compete against direct competitors as well as the giants like Amazon.

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