Groceries to overtake gadgets as the biggest seller on the web

Research from Britain suggests sales of groceries will overtake electrical goods as the leading online product within five years. “Food and groceries are on course to leapfrog electricals into the top spot, accounting for 29% of all online sales in 2012, compared to 22% for electricals,” the report from retail research group Verdict Research says.

Malcolm Pinkerton, senior retail analyst and author of the report, says: “The internet is widely perceived as a cheaper and easier way of finding lower prices and bargains in most sectors.”

Although Coles and Woolworths dominate 75% of the grocery sector, their online services are only available in Sydney and Melbourne, with Woolworths also offering services in Canberra.

But given the habits of Australian consumers, Coles and Woolworths are unlikely to rush to expand their services. Steven Ogden-Barnes, from the Australian Centre for Retail Studies, told the Sydney Morning Herald that competition for the Australian online marketplace would be an uphill battle, arguing consumers are undisciplined and purchase too infrequently.


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