83% of the UK population now have access to the internet and among this group a third have bought food and groceries online at some point.

This is quite an achievement given that profitability for the supermarkets’ online sales is at best less than with a traditional in store customer and more often than not, a loss-making exercise.

Supermarkets may be trying hard to make it profitable, for example Tesco now require a £40 minimum spend to qualify for free delivery (up from £25). Click & Collect is heavily promoted as it immediately benefits the bottom line as it is estimated that even after delivery income it costs supermarkets around £5 for a home delivery.

However, Click & Collect for food and groceries is even less popular than it is with non-food online shopping, so just how will the supermarkets square the circle?

Essentially, we’re going to have stomach paying more in delivery costs. Ad hoc promotions of free delivery are likely to be used from time to time to get us to jump ship from one supermarket to another. Food retailing is already so competitive that increasing prices of general merchandise is not an option, it will only induce us to shop online elsewhere or worse, spend more at the hard discounters.

For more information go to data tables in our Public Opinion online data sets or contact Richard Lindsay. 

And for more content like this check out the Public Opinion section on our website.

This public opinion data has been collected and analysed by NEMS from a survey of a representative sample of UK adults conducted through NEMS Market Research’s telephone omnibus, a national survey of 1000 adults conducted every week.

More details of our omnibus service can be found at: https://www.nemsmr.co.uk/omnibus/default.aspx