Online stores’ increasing influence in food market
There are already food chain stores where online merchandising makes up a quarter of the total traffic. There is also one where the average online cart price is three times higher than the average sum of traditional purchases. The chain stores’ interest is to make more people use the online interface, as Világgazdaság reported.
There are currently four food trade companies that are in competition for online customers: Auchan, CBA, GRoby and Tesco. They count with the radical extension of this medium, with it becoming a more decisive factor in merchandising. Auchan’s Hungarian subsidiary made a gross income of 1.143 billion euros, which is 3.8 percent growth compared to 2015. They opened their online store in the last November.
They claim that the products in a traditional and an online cart are usually the same. The values are, however, quite different: an average traditional cart contains 23 euros worth of goods, while an online one contains 65 euros. Auchan’s Hungarian communication manager Judit Gál highlighted that their online customers spend more, because they can easily follow their expenses that way. The purchasing process is also faster, and the accurate delivery is also a favorable factor.
In the case of GRoby, online sales make up a quarter of the total traffic. Though they are expecting a 5-10 percent growth in this area, they also intend to improve their traditional stores as well. The company’s manager Sándor Nagy emphasized that the five most popular online goods are milk, mineral water, coffee, fizzy drinks and stationery products. Two thirds of the orders contain fresh groceries like bakery products, meat, fruit or vegetables. GRoby plans to turn people towards daily online shopping in the next 2-3 years.
CBA’s communication manager Attila Fodor states that the same rates can be expected in Hungary as beyond the borders in 5-10 years. This means that 8-15 percent of purchases will take place online. CBA produces similar rates than its rivals do in online purchasing, especially due to their recurring customers. One of the greatest advantages of online purchase is that there is no need to carry heavy bags home.
Tesco offers 20,000 types of food, chemicals and household products on the web. They try to increase online sales by promotions, like offering double Clubcard points for purchasing on the internet. If the customer gives their card number at registration, the extra points are credited automatically after each purchase.