Online Grocery Delivery Is Set To Explode

Bain & Co. predicts grocery delivery will ultimately take off as companies continue to invest in it.

While its true that here in the U.S., just 3 percent of grocery sales takes place online and a new study by Bain & Co. in collaboration with Google, finds shoppers are reluctant to try delivery services and often don't stick with them.

In spite of this finding, Bain predicts grocery delivery will ultimately take off as companies continue to invest in it. According to the study, grocery shoppers are still concerned they're being charged higher prices online and complain about delivery drivers being late, among other disappointments.

Only a quarter of consumers have tried an online grocery service in the past year, according to the survey ofmore than 8,000 U.S. grocery shoppers. Only 26 percent of those shoppers, or 6 percent of all U.S. consumers, went on to say they order groceries online more than once a month. Most Americans are taking multiple trips to the grocery store each week.

Only 42 percent of people using a grocery delivery service for the first time say it actually saves them time, according to the Bain & Co.'s survey. It's important for a company to get it right the first time, it stated, because 75 percent of online grocery shoppers say they continue to use the first retailer they shopped from, the survey found.

But not all retailers agree with the forecast. Trader Joe's has announced that it would halt its online grocery delivery service in New York, and instead will focus on customer service and better utilizing space in stores.