Feb 27, 2020 - Economy & Business

Grocery delivery gets a target market

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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

Coronavirus is creating a renaissance for online grocery delivery

Data: Civic Science survey over four weeks; 7,606 total respondents; MOE ± 3%; Chart: Axios Visuals

Online grocery shopping has had a renaissance over the past month as the coronavirus outbreak has sequestered more people indoors.

The state of play: The number of people who say they are doing more grocery shopping online has risen from 11% on March 1 to 41% on March 22, fresh data from CivicScience shows.

Instacart plans to hire 300,000 more shoppers in coming months

Kaitlin Myers, an Instacart shopper. Photo: Denver Post/Cyrus McCrimmon

Instacart, the grocery delivery company, plans to hire 300,000 new workers to pick up and deliver orders to customers in North America over the next three months, more than doubling its current staffing.

Why it matters: Delivery services have become crucial for Americans as the coronavirus crisis forces many to stay at home. Instacart says order volume has grown by more than 150% year-over-year in the last few weeks, with the average customer basket size growing 15%.

Go deeper: The gig economy's coronavirus test

Americans' belief in "flattening the curve" increases with education

Reproduced from CivicScience; Note: Margin of error of ±3 percentage points; Chart: Axios Visuals

New data from CivicScience provided first to Axios shows that marketing of the phrase "flatten the curve," encouraging people to slow the spread of coronavirus through measures such as social distancing, is most effective for people with higher levels of educational attainment.

Why it matters: "Those with less education report varying degrees of skepticism and denial," CivicScience analysts say in their latest report accompanying the data. "And that skepticism may remain for some, at least until more on-the-ground data can confirm whether social distancing, mandated closures and other measures to flatten the curve are making a difference."