Incisiv and Wynshop Reveal Grocers Lost $11 Billion Due to ?Unavailable' or ?Unsubstituted' Items, According to H1 2022 Digital Grocery Performance Card
Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading digital commerce platform for local store-based retailers, today revealed the findings from its first report "State of Digital Grocery Performance Card" for H1 2022, including that grocers lost $11 billion due to ?unavailable' or ?unsubstituted' items. The report is now available for download on Grocery Doppio, a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth.
Grocery Doppio brings together rich, research-driven grocery content, fact-based observations, inspiring perspectives, and deep performance benchmarks that identify improvement opportunities for grocery retailers. The site is designed specifically to help grocery and food executives optimize their digital and in-store channels and accelerate growth profitably.
The Grocery Doppio website includes:
- Leaderboards and a monthly performance tracker that reveal financial performance, digital adoption, profitability, and market share of leading grocers
- Digital benchmarks to help grocers identify areas where they can improve profitability
- Exclusive shopper and grocery insights to track how shopper behavior is changing
- Practitioners' perspectives to learn how other grocery executives are navigating change and leading the charge in digital adoption
"The explosion of digital shopping during COVID forced grocery executives to execute digital strategies faster than they normally would have, often at the expense of profitability and operational effectiveness," said Gaurav Pant, Chief Insights Officer, Incisiv. "While digital has been a growth driver for the industry, we are seeing growth decelerate and most grocers are losing money on their digital orders. Navigating these uncertain times requires true benchmarks of digital performance, and we plan to make that available to the industry through Grocery Doppio."
Grocery Doppio's "State of Digital Grocery Performance Card" for H1 2022
One of the many resources available on Incisiv and Wynshop revealed the results from the first "State of Digital Grocery Performance Card" for H1 2022. The data is based on Incisiv's analysis of over 1 million shopper orders and survey results from 12,000 shoppers and 1,200 U.S. grocery executives. Key findings include:
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Grocery sales continue to rise, even as digital sales decelerate
- 13.7% of all H1 grocery sales were digital
- Digital grocery sales decreased 13% in Q2 2022 vs Q1 2022
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Grocers are pushing for greater adoption of their sales channels and store pickup
- 28.4% of all digital grocery orders in H1 2022 were through third parties
- 53.3% of all digital grocery orders in Q2 2022 were pickup
- 2.3% increase in delivery through grocer in Q2 2022 vs Q1 2022
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Digital basket sizes have shrunk as prices have risen
- $73.7 is the average basket size for a digital grocery order
- Average price of an item in a digital basket increased 15% in Q2 2022 vs Q1 2022
- Due to price increases, digital baskets have, on average, 3 fewer items in Q2 2022 vs Q1 2022
- 83% of grocery executives expect pricing pressure to continue until 2023.
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Grocers struggle with inventory visibility and profitability
- $11 billion in digital sales was lost by grocers due to ?unavailable' or ?unsubstituted' items in H1 2022
- $0.16 is the average margin loss on a digital order in Q2 2022
"We're tremendously excited to partner with Incisiv to provide the grocery industry with one central source of the most current and relative data and industry perspectives. We believe this will help grocery executives make informed decisions on how to run their digital businesses successfully," said Neil Moses, CEO of Wynshop. "Staggering stats like $11 billion lost in digital sales in just six months motivate us to get information out to grocers even faster so they can avoid missing out on sales. We look forward to using Grocery Doppio as a tool to help the entire digital grocery industry move forward."
Join Incisiv and Wynshop on August 11th at 10:00PST/1:00EST for a Webinar highlighting the findings of the "State of Digital Grocery Performance Card" for H1 2022. Register HERE
To download Grocery Doppio's "State of Digital Grocery Performance Card" for H1 2022 click here.
To learn more about Grocery Doppio visit www.grocerydoppio.com.
About Incisiv
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital
About Wynshop
Wynshop is an ambitious team of digital innovators obsessed with a solitary mission?helping grocers and other local store-based retailers grow wildly successful online businesses. Our refreshingly easy-to-use digital commerce platform enables efficient in-house picking, reduces fulfillment costs, and gives retailers the ability to control every facet of their customers' digital shopping experience to provide a more personalized customer journey and amplify shopper loyalty. Learn more at www.wynshop.com.
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