Growing up, the only shopping venues available to me beyond brick-and-mortar were catalogs and through infomercials. Although these alternatives existed, they were not a major threat to brick-and-mortar outlets. Today’s consumer, however, is seeing online and in-store shopping operate in-tandem with each other.

Recently, FMI, the Food Industry Association, and NielsenIQ (NIQ) released their new report, “Digital Engagement Transforms Grocery Shopping,” which found that more than 90% of shoppers participate in both online and in-store shopping.

Additionally, the association and market research firm provided an update on their 2017 prediction that by 2025 digitally engaged grocery shopper spending would reach $100 billion or 20% market penetration. The most recent report highlights that not only were these projections met, but even exceeded, with the duo projecting total U.S. online sales for grocery items to reach $388 billion or nearly 25% market penetration by 2027.

Among the digital tools contributing to this adoption are eCommerce platforms, retailer apps, social media as well as artificial intelligence (AI) personalization.

“Consumers are seamlessly blending in-store and online experiences to meet their needs,” said Mark Baum, chief collaboration officer and senior vice president of industry relations for FMI, in a statement. “Our research underscores the urgency for food retailers and manufacturers to adapt to this omnichannel reality and leverage digital technologies to enhance convenience, personalization and trust. Trading partners need to meet consumers where and how they want to be met.”

Kim Cox, managing director, Omnicommerce at NielsenIQ, added: “Digital engagement is no longer a complementary strategy, it’s essential to growth. With online food sales projected to reach $388 billion by 2027, retailers and manufacturers must prioritize eCommerce and social commerce strategies to meet the expectations of digitally connected consumers.”

The following are additional key findings within the report:

• Online Sales Growth: Online sales growth exceeds that of in-store for food and nonfood categories, while in-store leads in total share.
• Youth Purchasing Power: Gen Z’s shopping journey begins online and is heavily influenced by social media. Meanwhile, millennials index highest for online purchasing.
• Social Media eCommerce: 55% of respondents make direct purchases from social media or live-stream platforms for grocery and household items.
• Technology Prioritization: 92% of retailers are using technology, including AI, to personalize or customize shopping or marketing experiences, both online and in-store.
• Curbside Pickup: Curbside pickup is used more often by shoppers at 31% of respondents, overtaking same-day home delivery, which has dropped to 29%.

A recent example of retailers utilizing technology is Kroger Health. The healthcare division of The Kroger Co. introduced OptUP Your Nutrition, a new free nutrition coaching program to help customers achieve their health and wellness goals through customized nutrition tips and tools to support healthier eating.

The program provides Kroger Plus loyalty customers a free 30-minute virtual nutrition coaching session with a Kroger Health registered dietitian.

Because consumers can be unsure how to best begin a journey to healthier eating, OptUP Your Nutrition introduces them to work with a registered dietitian for coaching on healthy eating, budget-friendly and meal planning recipe tips, the company says. In addition, dietitians will demonstrate how customers can explore the FoodHealth Score powered by bitewell, which scores products based on the nutrient density and quality of ingredients in the food. They’ll also introduce MyNutrition Insights, where customers can better understand the nutritional value of purchases while tracking them over time.  

As the marketplace becomes more competitive, retailers are being tasked with new digital ways to engage with today’s consumers.