Executive Summary

1. Introduction

Overview

Supermarkets Online

Niche And Specialist Suppliers

Research

Definition

Business-to-consumer Market Included

Business-to-business Market Excluded

2. Strategic Overview

Market Dynamics And Segmentation

The Uk Grocery Market

Table.1: The Total Uk Grocery Market By Share Of The Leading Supermarket Chains (%), Weeks Ending Th February Andnd February

Table.2: Financial Results For The Leading Uk Supermarket Chains (£m And %), Latest Financial Years

The Uk Internet Grocery Market

Table.3: The Approximate Total Uk Internet Grocery Market By Value At Current Prices (£m At Rsp), Years Ending December-2008

Figure.1: The Approximate Total Uk Internet Grocery Market By Value At Current Prices (£m At Rsp), Years Ending December-2008

Distribution

Competitive Structure

The Traditional Grocery Market

The Internet Grocery Market

Capital Costs

Advertising

Table.4: Main Media Advertising Expenditure On Online Grocery Shopping (£000), Years Ending December-2008

Table.5: Total Main Media Advertising Expenditure By The Supermarket And Grocery Chains (£000), Years Ending December-2008

Table.6: Main Media Advertising Expenditure By Tesco On Online Shopping As A Proportion Of Tesco's Total Main Media Advertising Expenditure (£000 And %), Years Ending December-2008

The Consumer

Target Group Index Data

Household Ownership Of Personal Computers

Table.7: Household Ownership Of A Personal Computer By Sex, Age, Social Grade, Marital Status, Working Status, Region, Size Of Household And Presence Of Children (% Of Respondents),

Household Use Of A Personal Computer To Access The Internet

Table.8: Household Use Of A Personal Computer For Internet Access By Sex, Age, Social Grade, Marital Status, Working Status, Region, Size Of Household And Presence Of Children (% Of Respondents),

Amount Of Time Spent Using A Personal Computer

Table.9: Average Number Of Hours Spent Per Week Using A Personal Computer By Sex, Age, Social Grade, Marital Status, Working Status, Region, Size Of Household And Presence Of Children (% Of Respondents),

Broadband Internet Access

Number Of Broadband Connections

Table.10: Number Of Residential And Small-business Broadband Internet Connections In The Uk (000), Fourth Quarter-2008

Household Penetration Of Broadband Internet Access

Table.11: Household Penetration Of Broadband Internet Access In The Uk (% Of Adults), Fourth Quarter-2004 And First Quarter-2008

Broadband Internet Access At Home By Age, Social Grade And Income

Table.12: Penetration Of Broadband Internet Access At Home By Age, Social Grade And Income (% Of Adults), Second Quarter And

Market Forecasts

3. Supermarkets Online

Background

Market Size

Table.1: The Approximate Uk Internet Grocery Market By Supplier By Value At Current Prices (£m At Rsp), Years Ending December-2008

Figure.1: The Approximate Uk Internet Grocery Market By Supplier By Value At Current Prices (£m At Rsp), Years Ending December-2008

Table.2: The Approximate Uk Internet Grocery Market By Supplier By Value At Current Prices (%), Years Ending December-2008

Figure.2: The Approximate Uk Internet Grocery Market By Supplier By Value At Current Prices (%), Years Ending December-2008

Figure.3: The Approximate Uk Internet Grocery Market By Supplier By Value At Current Prices (%), Year Ending December

Online And Total Grocery Sales

Table.3: The Approximate Uk Internet Grocery Market As A Percentage Of Retail Sales Through `predominantly Food Stores' In Great Britain (£m At Rsp And %), Years Ending December-2008

Consumer Trends

Table.4: The Impact Of The Recession On The Online Purchasing Of Groceries By Sex, Age And Social Grade (% Of Respondents Who Have Used/use The Internet To Purchase Groceries), February

Marketing Activity

Advertising

Table.5: Main Media Advertising Expenditure By Online Grocers And By Supermarkets And Grocery Chains (£000 And %), Years Ending December-2008

Distribution

4. Niche And Specialist Suppliers

Background

Market Size

Table.1: The Approximate Uk Internet Grocery Market For Niche And Specialist Suppliers By Value At Current Prices (£m At Rsp),-2008

Figure.1: The Approximate Uk Internet Grocery Market For Niche And Specialist Suppliers By Value At Current Prices (£m At Rsp),-2008

Consumer Trends

Marketing Activity

Advertising

Table.2: Main Media Advertising Expenditure By Niche And Specialist Grocery Retailers (£000 And Number), Years Ending December-2008

Distribution

5. An International Perspective

Introduction

The Us Market

Freshdirect

Gopher Grocery

Groceryworks Holdings

Mywebgrocer.com

Peapod

Other Suppliers

The Eu Market

Table.1: Percentage Of Individuals In The Eu-27 Who Ordered Goods Or Services Over The Internet For Private Use In The Last Year By Country (%),

Table.2: Percentage Of Individuals In The Eu-27 Who Ordered Goods And Services Over The Internet For Private Use In The Last Year By Category (%),

The Adoption Of Broadband

Table.3: Total Number Of Broadband Subscribers In The Oecd By Country, December

Table.4: Oecd Broadband Penetration Rates By Country (number Of Broadband Subscribers Per Inhabitants), Fourth Quarter-2008

Table.5: Percentage Of Households In Oecd Countries With Broadband Access,

Payment-card Usage

6. Pest Analysis

Political Factors

Groceries Market Investigation — Final Report

Groceries Supply Code Of Practice

Ombudsman For Suppliers

Tesco Wins Competition Appeal

Economic Factors

Impact Of The Economic Recession

Table.1: Index Of Retail Sales Values At Current Prices (index=100 And £m At Rsp),-2008

Table.2: Percentage Change In Retail Price Index Over -month Period, Year Ending December

Online Grocery Retailers Start To Compete On Price

Social Factors

Food Policy And Food Issues In The Uk

Online Retailers Cutting Down On Use Of Plastic Bags

Unnecessary Packaging By Supermarkets

Household Ownership Of Home Computers And Internet Connections

Table.3: Uk Household Ownership Of Home Computers And Internet Connections (% Of Households), Years Ending March-2006 And Years Ending December And

By Income

Table.4: Uk Household Ownership Of Home Computers And Internet Connections By Income Decile Group (% Of Households),

By Household Composition

Table.5: Uk Household Ownership Of Home Computers And Internet Connections By Household Composition (% Of Households),

By Region

Table.6: Uk Household Ownership Of Home Computers And Internet Connections By Government Office Region And Country (% Of Households),-year Averages-2007

Technological Factors

Ocado Sets Up Waste-reduction Initiative

Online Grocers Use Electric Delivery Vans As Greener Alternative

Tesco's Drivers Receive Road Safety Training

Waitrose Introduces `eco' Handcarts

Sainsbury's Affected By Website Problems

7. Consumer Dynamics

Introduction

Grocery Purchasing Via The Internet

Shopping Online For Groceries At Least Once A Year

Table.1: Grocery Purchasing Via The Internet At Least Once In A Year (% Of Respondents), February

Frequency Of Online Grocery Purchases

Table.2: Grocery Purchasing Via The Internet By Frequency (% Of Respondents), March, April, May And February

Table.3: Grocery Purchasing Via The Internet By Frequency (% Of Respondents), February

Average Spend Per Online Shopping Session

Table.4: Online Grocery Shopping By Amount Usually Spent (% Of Respondents Who Have Used/use The Internet To Purchase Groceries), March, April, May And February

Table.5: Online Grocery Shopping By Amount Usually Spent (% Of Respondents Who Have Used/use The Internet To Purchase Groceries), February

Length Of Time Respondents Have Been Purchasing Groceries Over The Internet

Table.6: Length Of Time Respondents Have Been Buying Groceries Online (% Of Respondents Who Have Used/ Use The Internet To Purchase Groceries), February

Percentage Of Monthly Groceries That Are Purchased Via The Internet

Table.7: Percentage Of Total Monthly Groceries That Are Bought Online (% Of Respondents Who Have Used/use The Internet To Purchase Groceries), May And February

Table.8: Percentage Of Total Monthly Groceries That Are Bought Online (% Of Respondents Who Have Used/ Use The Internet To Purchase Groceries), February

Retailers From Which Groceries Are Purchased Online

Table.9: Online Grocery Shopping By Source Of Purchase (% Of Respondents Who Have Used/use The Internet To Purchase Groceries), May And February

Table.10: Online Grocery Shopping By Source Of Purchase (% Of Respondents Who Have Used/use The Internet To Purchase Groceries), February

Impact Of The Recession On Online Grocery Expenditure

Table.11: The Impact Of The Recession On The Online Purchasing Of Groceries (% Of Respondents Who Have Used/ Use The Internet To Purchase Groceries), February

8. Company Profiles

Overview

Asda Group Ltd

Corporate Strategy

Advertising

Distribution

Profitability

Table.1: Financial Results For Asda Group Ltd (£000 And %), Years Endingst December-2007

Future Company Developments

J Sainsbury Plc

Corporate Strategy

Advertising

Distribution

Profitability

Table.2: Financial Results For J Sainsbury Plc (£000 And %), Years Endingth March,nd March Andst March

Future Company Developments

Ocado Ltd

Corporate Strategy

Advertising

Distribution

Profitability

Table.3: Financial Results For Ocado Ltd (£000 And %), Year Endingth November, Weeks Ending Rd December And Year Endingnd December

Future Company Developments

Tesco Plc

Corporate Strategy

Advertising

Distribution

Profitability

Table.4: Financial Results For Tesco Plc (group Sales) (£000 And %), Years Endingth February And Rd February, And Weeks Ending Th February

Table.5: Approximate Financial Results For Tesco.com (£000 And %), Years Endingth February Andrd February, And Weeks Ending Th February

Future Company Developments

Waitrose Ltd

Corporate Strategy

Advertising

Distribution

Profitability

Table.6: Financial Results For Waitrose Ltd (£000 And %), Years Endingth January,th January Andth January

Future Company Developments

Other Companies

Specialist Suppliers

Abel & Cole Ltd

Donald Russell Ltd

High-street Chains

Holland And Barrett Retail Ltd

Marks And Spencer Plc

Thorntons Plc

Department Stores

Fortnum & Mason Plc

Harrods Ltd

9. The Future

Economic Trends

Table.1: Forecast Uk Growth In Gross Domestic Product In Real Terms (%),-2013

Table.2: Forecast Actual Number Of Unemployed Persons In The Uk (million),-2013

Table.3: Forecast Uk Rate Of Inflation (%),-2013

Further Improvements In Online Grocery Services

New Entrants To The Market

Food-price Inflation Remains High

Increasing Environmental Awareness Of The Online Grocers

Ofcom Gives Go-ahead For Super-fast Broadband

Forecasts To

Table.4: The Forecast Total Uk Internet Grocery Market By Value At Current Prices (£m At Rsp), Years Ending December-2013

Figure.1: The Forecast Total Uk Internet Grocery Market By Value At Current Prices (£m At Rsp), Years Ending December-2013

Table.5: The Forecast Uk Internet Grocery Market As A Percentage Of Retail Sales Through `predominantly Food Stores' In Great Britain By Value At Current Prices (£m At Rsp And %), Years Ending December-2013

10. Further Sources

General Sources

Government And Official Sources

Other Sources

Key Note Sources