Feb 27, 2020 - Economy & Business

Grocery delivery gets a target market

Dion Rabouin, author of Markets
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Reproduced from CivicScience; Note: Not all responses shown; Chart: Axios Visuals

The ideal grocery delivery customer is young and rich, new data from CivicScience shows.

Why it matters: Companies like Amazon and Walmart are investing further in grocery delivery and the data show who their target demographic could be.

  • The research shows "Amazon has captured the attention and interest from more potential customers."

Details: The increase in the number of people 18–24 who use and like grocery delivery is a shift from last year, when enthusiasm about the services was split among age groups, CivicScience analysts note. While the youngest adults lead the way in adopting this tool, those aged 35-54 lead with intent to use.

  • The interest gap between income levels is intuitive given the markup and delivery fees, but the higher participation from Gen Z, who are often the lowest earners, is explained by a reliance on "immediate gratification and saving time," the analysts note.

The intrigue: Respondents who have used and like grocery store delivery also report favoring specialty stores such as Whole Foods and Trader Joe’s. However, the greatest interest comes from those who shop at stores known for lower prices, like Sam’s Club and Walmart.

  • "This echoes the data around price, suggesting that there is plenty of room for expansion in the direction of affordable, accessible stores."

Go deeper: Why Amazon keeps spending big on grocery delivery

Go deeper

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