Incisiv Releases Fourth Annual Grocery Digital Maturity Benchmark Research

• Shopper adoption of digital channels is growing, despite slower pace of digital capability adoption by grocers in 2022.
• Shoppers are now taking a mobile-first approach, and the overall share of digital sales is projected to grow to 20% by 2026

Incisiv, a next-generation industry insights firm that helps retailers and brands help navigate digital disruption, announced today the release of its 2022 Grocery Digital Maturity Benchmark Research.

While the pace of digital capability adoption by retailers slowed in 2022 compared to 2021 and 2020, shopper adoption of digital channels for the grocery segment continues to grow across demographic profiles. The overall share of digital revenue in 2022 increased by about 2%. However, shopping trips per month grew by 47% (3.1 vs. 2.1 in 2021). Correspondingly, the average order value dropped by 20%, from $92 in 2021 to $72 in H1 2022. Incisiv’s 2022 Grocery Maturity Benchmark assesses the digital capability of top grocery retailers across research & discovery, online ordering, fulfillment, and 360-degree service.

Incisiv’s assessment methodology spans over 200 measurable attributes, assessing 129 of the top U.S. and European brands across six industry segments, including discount stores, hypermarkets, supermarkets, warehouse clubs, convenience stores, and drug stores. Attributes are categorized as table-stakes or differentiating capabilities based on their impact on key digital performance metrics such as average order value (AOV), conversion, traffic, and customer satisfaction.

Through Incisiv’s assessment methodology, 31 brands were assessed as Leaders, including consistent performers: BJ’s, Coop, Loblaw, Costco, HyVee, Kroger, Sainsbury’s, Target, Walmart, and Wegmans. Notable new Leaders include Albertsons, Auchan, Carrefour, and Whole Foods. The complete list of Leaders assessed by Incisiv is available to download here.

Key findings of the research include:

• Consumer adoption of digital channels continues to increase across demographic profiles.

• Consumers are going mobile first, with 67% preferring retailers’ mobile apps over their websites, especially for ordering and customer service, an increase of nearly 50% YoY.

• In-store fulfillment has regained its preferred status, with 54% of consumers rating it as their most preferred way to shop, followed by home delivery and curbside pickup at 33% and 13%, respectively. The preference for curbside is the same across urban and suburban areas, but preference for home delivery is 8X higher in urban areas compared to suburbs.

• Expedited delivery is valued by four out of five shoppers, but only 20% are willing to pay extra for deliveries in two hours or less.

• Regional retailers are more mature in terms of digital capabilities compared to national grocers. They lead in the adoption of payment options, order customization, service, and promotions visibility.

• Grocers have evolved many of their digital capabilities, yet there is considerable progress left to make to meet shopper expectations. As an example, while 89% of retailers have enabled order tracking, only 24% currently offer expedited two-hour pickup from the store.

“We conducted this study to help grocery brands across North America and Western Europe understand how they compare to their peers, as well as to help identify high-impact improvement opportunities for digital transformation,” said Amar Mokha, Chief Operating Officer, Incisiv. “While grocery retailers have adopted digital capabilities at an accelerated pace over the last two years, the speed of digital transformation has slowed as retailers take a step back and shore up the backend to activate a truly seamless omnichannel experience and focus on profitability.”

“However, customer behavior is a moving target, and the industry must continue to evolve to meet expectations, especially as customer loyalty in the digital channel is becoming harder to attain. A re-imagined store operating model aligned to evolving consumer needs will go a long way in ensuring retention,” Mokha concluded.

Click here to download the complete findings from Incisiv’s 2022 Grocery Retail Digital Maturity Benchmark Report.

Survey Methodology

Incisiv’s 2022 Grocery Retail Benchmark Report is based on insights from its proprietary digital maturity benchmarking methodology and consumer survey of 10,000 respondents across the U.S. Incisiv’s digital assessment methodology spans over 200 digital capabilities. It assesses the top 129 brands across six industry segments: discount stores, hypermarkets, supermarkets, warehouse clubs, convenience stores, and drug stores. Attributes are categorized as table-stakes or differentiating capabilities based on their quantified impact on key digital performance metrics such as average order value (AOV), conversion, traffic, and customer satisfaction.

About Incisiv

Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting and the tools necessary to improve digital maturity, impact, and profitability. More information is available at https://www.incisiv.com.

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