UK Driving European Online Grocery Market

Revenues from online grocery sales in Europe are expected to surpass those in the US by 2003, driven by rapid expansion in the UK online retail sector.  In 1999, EUR99 million worth of groceries were sold online by UK supermarkets, more than in the rest of Western Europe combined.  This statistic indicates that some countries (areas of the world) adopt technology at faster rates than others.  If this expectation proves correct significant increases in online retail sales will have to occur as currently only 0.1 per cent of retail sales in Europe are made on the Internet.  The article proposes the reasons for slow Internet adoption rates in Germany and France include cultural factors and low technology penetration.  Those individuals who already buy groceries online tend to be young, high-earning urban professionals (about 40% have children).  It will be interesting to see whether additional market segments adopt the technology in the future.  The expected growth presents opportunities for retailers, namely expansion of their product portfolios.  Forester advises that those retailers who obtain first-mover advantages and are committed to online sales will succeed.