See how characteristics of the online grocery shopping offer are defining the market and learn more about Brick Meets Click's three potential growth scenarios (conservative, moderate, and aggressive) based on market level assumptions.

1. January 2014
Forecasting the Growth
for Online Grocery
Shopping
January 2014
By Brick Meets Click
Brick Meets Click delivers the strategic insight and guidance that retailers, suppliers, &
technology providers need to drive growth by meeting shopper needs in an omnichannel
environment.
@2014 brick meets click

2. January 2014
What Characteristics of the Online Grocery
Shopping Offer are Defining the Market?
→ Availability: “Market Presence”
→ Accessibility: “Ease of Use”
→ Flexibility: “Fulfillment Options”
→ Affordability: “Competitive Prices”
@2014 brick meets click 2

3. January 2014
Modeling Market Readiness and Growth Potential
→ Adoption curves reflect actual experience of similar US retail
business models.
→ “Start point” based on survey results from 22,000 customers from
seven retail banners across multiple markets in the US.
→ Growth/diffusion rate driven by positive word of mouth.
→ Demographics define the “necessary conditions” and high potential
segments.
→ Growth scenarios built around the intensity of competition.
@2014 brick meets click 3

4. January 2014
Market-based Scenarios =
the Only Practical Way to Go
→ Created at the market level vs. national.
→ Driven by the level of shopper readiness and the
availability of online grocery shopping in that
market.
→ Online penetration driven by the speed/scale of an
investment.
@2014 brick meets click 4

5. January 2014
Potential GROWTH Scenarios
@2014 brick meets click 5

6. January 2014
CONSERVATIVE Growth:
6.7% penetration in 2024
Market conditions: Only online grocery option in the
market is a new player who:
→ Must invest in a physical capability; i.e. fulfillment
center.
→ Takes a measured approach to deploying across
the market.
@2014 brick meets click 6

7. January 2014
MODERATE Growth:
10.7% penetration in 2024
Market conditions: Some disruption as Amazon
accelerates rollout to more markets triggering a response
by the regional supermarket chains in those areas.
→ Only the leaders respond.
→ Response extends to reinventing the store.
@2014 brick meets click 7

8. January 2014
AGGRESSIVE Growth:
16.9% penetration in 2024
Market conditions: Major disruption has occurred as
Amazon Fresh dramatically increases its number of
market, and national chains, as well as regionals respond.
→ There are available physical assets ready for
conversion for fulfillment.
→ Deployments are accelerated.
@2014 brick meets click 8

9. Three Forces Reshaping the Retail Landscape
Di gi t al l y Connect ed
Ret ai l ers’ Need
Shoppers t o
Grow
Li f ecycl e of
Ret ai l Format s
January 2014
@2014 brick meets click 9

10. January 2014
10
Br i ck Meet s Cl i ck hel ps gr ocer y
r et ai l er s, suppl i er s and t ech pr ovi der s
wor k smar t er i n t oday’s omni channel
envi r onment .
We al so host a commer ci al -f r ee f or um on
our si t e about t he f ut ur e of shoppi ng and
gr ocer y r et ai l i ng - Gi ve us a vi si t !
bri ckmeet scl i ck.com
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