A study on food and beverage buying released earlier this month by Tabs Analytics concluded that food retailers should slow their investments in e-commerce and on millennials, and focus instead on old-fashioned promotional spending at stores and on marketing to households with children.
The study included 1,000 geographically and demographically dispersed consumers between 18 and 75, and analyzed 15 consumables categories.
According to the study, only 20% of millennials are heavy buyers of food and consumables, and only 4.5% of all shoppers use the Internet to purchase groceries six or more times per year.
"The study underscores that online grocery is failing," said Tabs CEO Kurt Jetta. "For the fourth year in a row, consumers have turned their backs on buying groceries online no matter how much online grocery retailers try to entice them."
In addition, since the study showed that millennials use grocery store circulars significantly less than the overall study average (30% compared to 42%), Jetta said retailers should focus their marketing on households with children, as they are heavy buyers of food and beverages, and much more likely to respond to promotions.