1.
The State of Online Grocery
Retail in Europe 2015
Published: July 8th, 2015

2.
The egrocery market is growing fast with
an expected value of €80 billion by 2018
4 trends are shaping the egrocery industry

3.
1. Growing Diversity of Players

4.
•Traditional Players (Brick and Click)

5.
•Pure Players

6.
•Technology, Ecommerce and Logistics
Giants Expanding to Egrocery

7.
2. Growing
Attention to
Omnichannel
Tesco (UK) aims to have every arm
of its business featuring a digital
aspect.
Walmart (US) plans to spend up to
$1.5 billion in 2015 to offer the best
omnichannel experience to its
consumers.
Tesco’s 3D virtual store

8.
3. Increasing Number of
Mobile Transactions
Mobile purchases will account for €100
billion by the end of 2015.
3 out of 10 online transactions are
completed via a mobile device.

9.
4. Delivery Model Optimization
vs
Home Delivery Pick-up

10.
How is Egrocery Doing Across Different
Countries?
The UK
The Netherlands
Germany
France
The US
India

11.
The UK
Grocery retail market size: £174.5 billion
Online grocery retail market size: £7.7 billion
Penetration of online grocery shopping (% of the
total population): 25%
Online shopping and Internet usage
Online grocery retail Ecommerce
is the fastest
growing retail
channel in
the UK
UK’s
egrocery
market is
expected
to double
by 2019
UK’s egrocery
market is the
most
developed
in the EU,
worth £7.7
billion

12.
Market highlights
• Tesco is cutting back on physical
store openings in order to focus on
the online channel.
• Asda plans to roll out 1,000 pick-up
points, and make same-day
procurement the norm.
• Sainsbury’s aims to put
personalization at the center of its
online experience.
• Ocado, the world’s largest pure
online grocery player, reported its
first profitable year in 2014.
• Ocado started leveraging its know-
how by offering its infrastructure, and
operating capabilities to power third-
party online retail enterprises.

13.
The Netherlands
Grocery retail market size: €33.8 billion
Online grocery retail market size: €0.5 billion
Penetration of online grocery shopping (% of the
total population): 15%
Fastest
growing
egrocery
market in the
EU, driven by
traditional
retailers
The pick-up
point network in
the Netherlands
grew 680%
since January
2013
71% of the
total
population
shops
online
Online shopping and Internet usage
Online grocery retail

14.
• Albert Heijn is the current
undisputed egrocery market
leader controlling 53% of the
market.
• The Dutch online grocery
retail market is expected to
catch up with the leading
markets, like the UK and
France, within the next 2-3
years.
Market highlights
• New egrocery market players: from
big retailers (such as Jumbo) to smaller
retailers (like DEEN), to new start-ups,
will be the key factor driving growth
of the Dutch egrocery market.
• Following Instacart’s success in the
US, entrepreneurs are trying to
introduce similar egrocery concepts to
the Netherlands.

15.
Germany
EU’s 2nd
largest
ecommerce
market
Egrocery
represents
0.8% of all
grocery
sales
38%
egrocery
market
growth in
2014
Grocery retail market size: €247.2 billion
Online grocery retail market size: €2 billion
Penetration of online grocery shopping (% of the
total population): 11%
Online shopping and Internet usage
Online grocery retail

16.
Market highlights
• Allyouneedfresh.de, an online grocery retailer
owned by DHL, is bringing new standards to the
egrocery market in Germany. Its reliable delivery
network (provided by DHL) allows consumers to
track their orders, personalize their preferences,
and have groceries delivered within the same day.
• Traditional
retailers - EDEKA
and REWE are
investing
significantly to
expand their
online offerings.
• Amazon and eBay
are the most
popular choices for
consumers when
purchasing CPG
products online.

17.
France
Egrocery
represents
3.6% of all
grocery
sales (€8.8
billion)
Traditional
players
dominate
the
egrocery
market
Largest pick-
up point
network in
Europe
(3000+)
Grocery retail market size: €231.0 billion
Online grocery retail market size: €8.4 billion
Penetration of online grocery shopping (% of the
total population): 11%
Online grocery retail
Online shopping and Internet usage

18.
Market highlights
• Pick-up points are used to handle 8
out of 10 online grocery orders in
France.
• 80% of the French can reach a
pick-up point within 10 minutes
from their home or office.
• Casino Group leads the online
grocery sector with a 25% market
share, followed by E.Leclerc with
18%.
• Houra.fr, launched in 2000, was
the first online marketplace for
groceries in France. The
company claims to offer the
largest online grocery
assortment in the country with
more than 55,000 products.

19.
The US
Grocery retail market size: $594.4 billion
Online grocery retail market size: $18.0 billion
Penetration of online grocery shopping (% of
the total population): 20%
Online shopping and Internet usage
Egrocery
accounts
for 3% of
all grocery
retail sales
Pure online
players lead
way in
egrocery
Membership
models, like
Amazon Prime,
are driving the
adoption of
online grocery
shopping
Online grocery retail

20.
Market highlights
• The US market as a whole, only
has a small part of all retail
sales completed online.
• The picture is completely
different in large metropolitan
areas (New York, L.A., Seattle)
where most of the online
grocery players operate.
• Walmart has crafted a new digital
strategy (planning to invest
between $1.2 and $1.5 billion in
2015) in order to deliver the best
omnichannel experience to
consumers.
• Pure online players to watch in
the US:
 Instacart
 AmazonFresh
 FreshDirect
 Peapod
 Google Express
 Jet.com
• Kroger, one of the largest
supermarket chains in the US,
is growing its presence online
through acquisitions.

21.
The emerging market:
IndiaNo. of online shoppers: 35 million
Grocery retail market size: $365 billion
Online grocery retail market size: $100 million
Stalls
(Kiranas),
mini marts
and kiosks
account for
98% of all
grocery
sales
Egrocery
market is
expected to
reach the
value of $10
billion by
2020
VC’s invested
$100 million to
egrocery
startups
across 2014 –
2015
Growth potential
• By 2020 the market is expected to grow more than
100 fold.
• India’s immense number of Internet users will be a
decisive factor driving online grocery adoption.
• Ecommerce giants Flipkart and Snapdeal have
already started adding grocery products to their online
ranges and Amazon.in launched a gourmet and
specialty food store in October 2014
Online shopping and grocery retail

22.
Market highlights
• Favorable demographic and
economic conditions, spread
of internet and the absence
of strong traditional
supermarket chains
operating online, created an
opportunity for a number of
innovative pure online players
to emerge in the egrocery
market.
• BigBasket.com is the largest and
best-known online supermarket in
India. The pure online player
currently operates in six major cities
and had $40 million in revenue in
2014.
• Popular Indian egrocers like Grofers,
Pepertap along with the ecommerce
giant Amazon, are running new
initiatives to bring the 14 million
Kirana shops and their assortments
online.

23.
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