New research compared the spending habits of in-store and online grocery shoppers, showing where the “lucrative” opportunities lie for savvy new businesses.
When you’re starting up a new business, one of the critical questions is: do I need an office?
New data from Roy Morgan Research showed that online shoppers aren’t just easier to target as a market, they’re also typically bigger spenders, giving weight to the argument that physical shopfronts aren’t a necessity.
In an analysis of shoppers at Woolworths, the research house found that shoppers who bought groceries from Woolworths Online spend an average of $186 a week, compared to $103 for those buying from the brick-and-mortar Woolworths stores.
Further analysis showed that women who buy groceries from Woolworths Online spend an average of $194 a week, compared to an average of only $106 for those women buying groceries from a physical Woolworths outlet.
A similar pattern is true for men. Australian men buying groceries from Woolworths Online spend an average of $126 in a week, compared to an average of $98 in a week for those buying groceries from physical Woolworths stores.
“The huge difference in spending patterns between the online and ‘bricks and mortar’ stores is driven by women who spend far more on average via the online outlet than via the physical store,” Roy Morgan Research said.
These trends are paralleled with Coles shoppers too. In a week, the average online shopper at Coles spend $158, compared to $97 in-store.
Again, women were leading the charge with the amount of money being spent, averaging $171 per week online, compared to $104 for men.
“It appears that the biggest beneficiaries of a shift to buying groceries online will be retailers who look set to drive greater revenue per customer from online grocery sales and also women doing the weekly grocery shopping who the data shows are prepared to spend significantly more on groceries when doing so from the convenience of their lounge room,” said Michael Levine, CEO of Roy Morgan Research.