Challenges and potential of online shopping for fresh produce

For ASDA and for many businesses in the UK, and probably also in Europe, online shopping, home shopping and home delivery are currently at the forefront of their strategies, also for fruit and vegetable purchases. On-line trade has been growing strongly for ASDA, with a double digit increase in dotcom sales over the past two years. “Nowadays, in the UK, you have to give convenience to your customers or you will be left behind,” says Dominic Edwards Director of IPL.

Panel discussion with Dominic Edwards from Asda, Ge Happe from Ahold and Oleen Smethurst from Costco Wholesale Canada

The challenge involved, of course, is what to do which the stores, especially the larger ones. Dominic says that “we live in an era that is all about click and collect. We have 8 tube stations in the UK where you can shop as you go in the morning to work and also 28 click and collect sites, with plans to grow to 500 in the next two years.”

In what concerns fresh fruit and vegetables, the challenge lies in becoming the eyes and ears of quality control for consumers. Edwards explains that “we still have the lowest participation in fresh fruits, as it difficult to get it right. Customers demand ripeness, but also shelf life. All our shops pick and deliver within 36 hours, but we are now developing home centres geared towards on-line shopping that can guarantee quality. Click and collect is all about accessibility, about being able to reach more consumers.”

In terms of product catalogue, there are no differences. Anything available in stores can be purchased at home on-line or via click and collect. This involves further challenges, as most delivery vans are chilled, which especially presents problems for bananas and flowers, and there are other issues that still need to be fine-tuned.

As a counterpart, on-line sales allow for greater innovation with tools such as QR codes or automatic recommendations. “For example, when a customer clicks on the tomato icon, the lettuce icon will instantly appear with information about what is on offer that week. It is safe to say that an on-line platform can really help you innovate and gain sales by reaching more consumers,” concludes Dominic Edwards.

For more information, please visit: www.ipl-ltd.com