Americans still prefer in-store grocery shopping over buying online

American consumers still overwhelmingly prefer to buy groceries in stores rather than online, according to a survey sponsored by facilities management company Vixxo. Not surprisingly, the research also found that providing an exceptional in-store experience and high food quality are key drivers for keeping supermarket customers happy and loyal.

About 1,260 U.S. consumers were surveyed about their attitudes and buying preferences, and some of the results are as follows:

• 87% of consumers prefer to shop in person (including 96% of baby boomers and 81% of millennials)
• 84% of consumers said that they liked the ability to inspect and select their own products
• 60% of consumers said that they favor the atmosphere and experience of shopping in brick-and-mortar stores
• Approximately 25% of respondents said that they buy prepared food from their grocery stores
• 14% of consumers said that they shop in only one grocery store
• Millennials are three times more likely than any other age group to say that they enjoy the social interactions they experience in grocery stores

Report finds that grocery shoppers visit multiple stores

A report from Acosta found that 76% of shoppers visit more than one store each week for groceries, and most of these consumers shop around to find cheaper products. In addition, 37% visit other stores to ensure they have fresh food, and 33% do so because they can't find all the brands they like at one location.

The report also notes that 53% of shoppers choose a retailer based on a preference for specific store brands, up from 34% in 2011.

So, grocery chains should take note (and most likely they are) that while price is a motivating factor for grocery shoppers, selection, freshness and private label quality are also very important. And while store traffic may be up overall due to consumers shopping around and making multiple grocery trips each week, it is likely that basket size per visit is down.

The findings help explain the proliferation of non-traditional food retailers, as consumers aren't finding everything they want at a traditional grocery store.

Survey says millennials shop for groceries differently than the rest of us

According to a recent survey by the International Council of Shopping Centers, 99 percent of adults in the U.S. buy some or all of their groceries in person. Those surveyed cited immediate access to products and the ability to select fresh meat, dairy and produce as the top reasons.

The survey also revealed that 93 percent of adults shop for groceries at discount department stores (Walmart, Target), and 92 percent shop at traditional supermarkets . Sixty-nine percent of the people surveyed said they shop at limited assortment food stores (Aldi, Trader Joe's) and warehouse clubs.

Millennials revealed different shopping behaviors from all others. Seventy-four percent of them buy groceries from convenience stores, 67 percent from Amazon or other online retailers, and 66 percent from high-end supermarkets. Even when buying online, 81% of millennials go to the store to pick up their groceries.

Peapod by Giant online grocery shopping to serve Greater Philly

Ahold, the international retailer that owns Giant Food Stores, announced earlier this week that starting this Friday, Peapod will offer service to Philadelphia and Delaware counties, as well as the southern portion of Montgomery county. Peapod is an Internet-based home shopping and grocery delivery service.

Customers will be able to order groceries online through Peapod.com or through PeapodMobile, a free app available for iPhone/iPad, Android and Palm Pre users. Orders can be delivered the next day.

According to a story in the Philadelphia Inquirer, Peapod fills orders from an Internet-only storage warehouse in Maryland. Groceries are placed in temperature-controlled tote bags before being shipped by truck to a central location, where they are placed on smaller trucks and delivered to customers. Delivery fees start at $9.95 for a $60 minimum order and go down as the order size increases.

Grocery prices are up, but spending is down

According to the semi-annual Acosta Sales & Marketing report titled "The Why Behind the Why," average monthly spending on groceries is 7% less than it was one year ago. This spending decrease is despite the fact that grocery prices are higher than they were in 2010.

Other report findings include the following:

• Americans spend an average of $94.60 on a routine grocery visit. Last year it was $98.70.
• Grocery spending has been affected by high gas prices. The average shopper will make fewer grocery trips when the price of gas reaches $3.70 per gallon.
• 53% of Americans are paying more attention to what they buy at the grocery store; 43% are buying less food; 41% are using coupons or looking for sales; and 22% are shopping at less expensive stores than they once did.

Is Giant planning to compete with Wawa?

Giant Food Stores plans to open its second Giant To Go convenience store in the Lancaster area. The store will be 4,000 square feet and will have three main areas: Meals to Go, Groceries to Go, and Snacks to Go. According to Supermarket News, the store will offer rotisserie and fried chicken, a salad bar, submarine sandwiches (customizable via a toppings bar), coffee, espresso and cappuccino, as well as sushi, breakfast items and soup.

Since Giant sells gasoline at many supermarket locations, I wonder if that's the logical next step for Giant To Go locations.