Startups to Watch
Online grocery shopping is rapidly growing as consumers avoid stores. Here are 5 startups that could help retailers and brands better connect with shoppers and drive sales long-term.
The Covid-19 outbreak is accelerating the growth of online grocery, as more consumers avoid going to brick-and-mortar stores.
As of the end of March 2020, 31% of US households (40M) had shopped for groceries online within the last month — more than double the number of online grocery shoppers just 7 months earlier. More than a quarter of those shoppers (26%) reported they had used an online grocery service for the first time.
Grocers’ app use is also way up, with apps like Walmart Grocery seeing record downloads.
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While retailers are largely finding ways to keep up for now, the rush of new users means stores and manufacturers must prepare for continued demand after the coronavirus crisis has settled down. (That’s one big reason why last-mile delivery startups are getting so much attention.)
Retailers will also be looking for ways to create loyalty among their new shoppers. In particular, startups specializing in e-commerce merchandising could help manufacturers and retailers further enhance the online grocery experience. Adding features that improve item pages and suggest new products could help add to shoppers’ baskets and boost online grocery use in the longer term.