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Gen X shifts to grocery shopping online

By: Jennifer Sweeney

Dive Brief:

  • The number of Generation X shoppers buying groceries online has grown considerably from 29% in 2018 to 40% in 2019, according to FMI's new U.S. Grocery Shopper Trends report. Millennials still report a higher frequency of online shopping, however.
  • About 43% of all consumers report shopping online occasionally, and use of both online-only and brick-and-mortar retailers with online options are growing rapidly. About 13% of shoppers use same or next-day delivery, 17% report using home delivery and 17% use in-store pickup.
  • About 21% of those surveyed are regular online shoppers who shop either monthly (11%) or "frequent" shoppers who buy online at least every two weeks (10%). Among frequent shoppers, 13% use an online-only retailer "almost every time" and most of them are male, millennial and have a higher income.

Dive Insight:

Generation X has often taken the backseat to both Baby Boomers and millennials when it comes to consumer trends, but those born between 1965 and 1979 have a higher than average income and incredible spending power. Though this demographic may not be shaping trends like its younger and older counterparts, it still has a huge influence. According to the U.S. Bureau of Labor Statistics, Gen X spends more money than millennials – and spend the most money on wine and food of any generation. They are also the parents of up-and-coming Gen Z consumers. 

Though slower to become regular online grocery shoppers than millennials, the group has started to catch up in the past year. The FMI report shows an 11% jump in the number of Gen Xers shopping online, which is a bigger year-to-year jump than any other demographic group. Millennials increased by 2% and Baby Boomers by 4%, while Generation Z's online grocery habits were captured for the first time in this report.

Among frequent online shoppers, 29% are part of Gen X compared to 26% of shoppers overall. Millennials account for 49% of frequent online shoppers and 35% of shoppers overall. Those that shop frequently tend to shop across platforms and spend more money that occasional shoppers, the report found.

No matter the generation, the in-store experience still matters, with 57% of shoppers reporting they do not purchase groceries online. Retailers are battling for loyalty and focusing on criteria like cleanliness, freshness, variety and low prices to drive customer satisfaction in brick-and-mortar stores. While online shoppers rank their online experience better than those in actual stores, 43% of consumers who shop online also make more than one trip to their local store every week.

Baby Boomers and mature shoppers tend to associate with a supermarket as their primary store for grocery shopping (58%) but 28% of Gen X name supercenters as their primary store. The three youngest generations also shop at limited assortment stores and online more than Baby Boomers or matures. 

Reprinted From: https://www.grocerydive.com/news/gen-x-shifts-to-grocery-shopping-online/557143/

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