The United States holds its annual Independence Day celebrations today, with an increased percentage of consumers turning to online grocery channels for their holiday essentials.
According to the National Retail Federation, some 86% of US consumers are celebrating the Fourth of July holidays this year, spending an average $73.33 on food items, to a total of $6.7 billion.
Average Spend
This compares to an average spend per person of $75.35 last year, and a total spend of $6.94 billion, the NRF added.
Cookouts, barbecues and picnics are the most popular activity for consumers (67%), followed by fireworks and community celebrations (40%), while just over a quarter of shoppers (26%) said that they are likely purchase additional 'patriotic' items to celebrate the holidays.
Earlier this year, the NRF said that it expects US retail sales to top $3.8 trillion this year, driven by high consumer confidence and low unemployment.
However, the trade body also noted that online sales (as well as non-store sales) could grow by as much as 10% to 12% over the year, which indicates that online is fast becoming a go-to channel for holiday purchases.
Online Growth
Elsewhere, as a recent study by IGD found, online grocery is poised to grow 152% in North America between 2018 and 2023.
According to the study, the value of online grocery sales in 2018 stood at $25 billion in 2018, but will grow to as much as $62 billion by 2023, an increase of $38 billion.
Similarly, online's share of the North American grocery market stood at 1.5% last year, but will rise to 3.4% by 2023.
“The digitisation of the food and CPG industry has already disrupted and transformed the industry, yet the story has only just begun," Susan Barratt, IGD CEO commented.
A Summer 'Black Friday'?
Indeed, many top retailers are using the Fourth of July celebrations to offer online promotions – akin to a summer edition of the 'Black Friday' sales.
Walmart has established a July 4th 'Savings Center' on its online platform, offering everything from 'stars and stripes'-themed backpacks to barbecues at knockdown prices.
Kroger is encouraging its shoppers to 'get fired' up for 4th July, with a host of themed summer and barbecue offers.
Amazon, too, is using the holidays to offer half price promotions on its popular Audible audiobook service, as well as for its Echo devices.
As retailers are discovering, as with Thanksgiving in November, Independence Day could – or perhaps already is – a valuable shopping opportunity.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
