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📈 ONLINE SALES IN EUROPEAN SUPERMARKETS WILL REACH 10% PENETRATION IN 2025

The penetration of online sales in supermarkets in Western Europe will reach 10% by 2025, compared with 3.8% at the end of 2019.
Likewise, estimates say that in some of the main European markets this share will double between 2020 and 2025. This is advance by some conclusions from the study 'How to Ramp Up Online Grocery-without Breaking the Bank', carried out by Bain & Company.
On the other hand, and taking into account the Covid-19 pandemic, the consulting firm forecasts that considering the versatility of containment steps, between 35% and 45% of the growth in online consumption will begin in 2020.

ONLINE CHANNELS FOR FAST GROWING

In the penetration of the online channel, all markets examined in the study experienced an acceleration equal to the growth of two to five years.
In this way, the consultant points out that home orders are "less profitable" for most supermarkets than sales in their physical stores, a fact that may dilute the benefits of the food industry unless steps take to increase the low profitability of online platforms.

STRUCTURAL REFORM

Companies who chose not to develop and strengthen their online channels will prevent the short-term loss of their revenues, but in the long term, the lack of digital infrastructure will make them uncompetitive.
According to the consultancy, supermarkets must carry out systemic changes in order not to see their general profitability decline between 50-80 basis points over the next five years.
Therefore, by improving their omnichannel network, diversifying their revenue sources, and removing subsidies for outlets that are not sustainable, supermarkets must protect themselves against this danger, the study indicates.
Furthermore, businesses should consider partnering or obtaining the requisite expertise through mergers and acquisitions in these three areas as a way to drive the change they need, because the needed technology investment represents a significant economic growth expense that, according to the consulting firm, they will have to assign it by making concessions on other investment opportunities.

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