Online Groceries in Israel
Written by zeroline on Wednesday, December 22nd, 2004 in General.
After living in Spain, I realized that grocery delivery in the USA would be a big success. Not only is grocery shopping popular in the USA, more countries are moving toward an upward trend of buying groceries online.
In Israel, 13% votes from a poll gathered that they order groceries by telephone or grocery delivery using the internet.
Read more of the story:
Survey: 13% buy groceries via Internet or by telephone
By Dafna Lutzky
Squeezing tomatoes and sniffing parsley are slowly becoming a habit of the past.
Israelis are quickly growing accustomed to buying their food with a keystroke, as a Trade and Industry Ministry survey revealed that 200,000 households - 13 percent of Jewish families - make a remote grocery purchase using either the telephone or the Internet.
The survey is the first of its kind, so there are no comparative figures, but 200,000 households that no longer visit the supermarket is a surprisingly high number, indicating Israelis are changing their shopping habits with technological advances.
The three major foodstuffs retailers all operate Internet sites that also accept telephone orders: Net Sal which belongs to Supersol, Blue Center which belongs to Blue Square, and Jumbo Direct which belongs to Clubmarket.
The grocery retail chains believe the Trade Ministry survey is encouraging. “The figures are a positive surprise,” said Shlomi Gindi, Supersol vice president for marketing and trade. “The trend is up, and we expect this to continue.”
Blue Center reports a 23 percent increase in proceeds and a 22 percent rise in the number of customers in the first half of the year. Jumbo Direct reported doubling revenues over 2003. Senior Trade official Benny Pfefferman said the figures indicate that time is becoming a rarer commodity, which impacts consumption habits.
Although the 500-participant survey did not differentiate between telephone and Internet orders, Trade assumes there is a strong link between the type of population, education level and location of residence and computer usage. Trade assumes that only 6,500-8,000 Jewish households do their grocery shopping over the Internet, representing 0.5 percent of the population and 4 percent of remote shoppers. Fifty-five percent of Israeli households have computers, and half of these have Internet connections.
The grocery chains’ figures do not support the Trade conclusions about computer usage. “About 50 percent of Blue Center purchases are done via the Internet,” Blue Square stated.
The Internet shopping services target an educated, secular population. However, the survey indicated that the population that does the most remote grocery shopping was done by the ultra-Orthodox community (25.5 percent), although over 80 percent of that population shops from home only occasionally.
“Subscribers are mostly from stronger socio-economic groups,” Net Sal confirms. “However, this is not an elitist service. Remote shopping avoids the temptations of physical presence in the stores, saving a great deal of money.”
Clubmarket marketing vice president Gershon Weissman claims otherwise. “We have smashed the myth that remote shopping is expensive. Jumbo Direct offers clients and consumers quality fresh products at the Jumbo chain’s discount prices.”
All the retailers report that the remote shopping basket is larger than the in-store basket. Jumbo Direct describe an average purchase of NIS 500, while Blue Center reports NIS 350. Gindi attributes the difference between the high NIS 500 Net Sal basket to the far lower - NIS 100 - to labor-saving measures. “Clearly, customers save their shopping and make a single larger purchase via the service, including ordering heavy products like soft drinks, in order to make use of the delivery service.”
A Haaretz review indicates the on-line shopping services have improved almost beyond recognition since 2000.
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