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DOES THE OPTION OF CHOOSING HOW TO GET PRODUCTS AFFECT ONLINE
BUYING AND DOES IT EASILY CONTRIBUTES TO THE FAST GROWTH OF
ONLINE BUYING OF FOOD?

ONLINE FOOD INDUSTRY MAKES BREAKTHROUGH IN SWEDEN
Ecommerce has grown rapidly in Sweden. This year every household has been shopping online
for groceries. A breakthrough has been seen on the online sales of foods and drinks in Sweden.
By September of this year online purchase of foods was worth about 5.4 billion or rather 550
million Euros. Major groceries in Sweden the likes of Coop, Willy, ICA, are digital. Coop,
Axfood, Bergendahls, ICA have a share of 90 percent but all the same this chains remain small

online. A survey clearly shows that this major four companies, they only account for 39 percent
of online grocery sales.
Ogvalls opinion is that the balance of forces may change if the established players understand the
uniqueness of sales process in ecommerce. Still he thinks that online retailers can still afford to
offer a better customer service, delivery experience and price.
Discount chain Willys’ started with ecommerce last June and hence expanded to Norrkoping and
Uppsales, and with more regions to be added. Company’s CEO, Thomas Evertsson, has an
expectation of them managing to challenge established grocery retailers. He says that they have
been able to reach customers who need to shop online, but found it to be far quite expensive. He
says it’s fast and easy to shop and that they do have Sweden’s cheapest bag of groceries. Willys
is the leading discount grocery store.
Markets write that new competition doesn’t worry Swedish online grocery retailer. There is
barely on the statistic which shows that 25 percent of the households have been purchasing food
online and also that six out of ten customers choose one of those pure online retailers. Axfood’s
grocery chains Willys and the Hemkop started selling groceries online in this year. Director
Mans Danielson says that it can be difficult to develop an ecommerce business and compete with
your own physical stores and also that there is a benefit of being just one channel. He says this
referring to Hemkop and Willys.
There has been a growing interest in food online in Sweden; it has been very interesting to
follow the development of online grocery sales. More and more companies have started
operations online the grocery market has followed.Mads Buhkolt the managing director to
Nordics at CupoNation say that the biggest companies in Sweden are also operating online. He

also says that some of them lose money while others see some profits but all the same everyone
wants and is trying to grab the market share before their competitors does since they are aware of
the fact that this market is key to compete in this business in the future.

Food online can be divided into three different categories, the Swedish trade organization writes:
The full-sized grocery store, dinner solutions and stores which specialize in in a particular
product range. In the previous years the dinner solutions have been a solution that has been
popular among Swedish consumers. Since last year it has been outpaced by the digital grocery
stores. 43 percent say they have bought some items in a full sized online grocery store whereas,
36 percent say they have gone for dinner solutions online. Jonas Oqvall, CEO to Svensk Digital
Handel, says the growing popularity of full size online grocery stores may be and a result of
consumers becoming more accustomed to buy food online, so they increasingly do but other
food products too. He also expects further growth of the online food industry. He says that when
the younger and more online shopping generation starts working and having a family, the online
food trade will have a likeliness of an increase. He says the industry also faces a number of
challenges, which includes logistics, presentation of goods and the customer’s willingness to feel
the products before purchase.
According to the researchers, ecommerce has widely distributed throughout Sweden but the most
active ecommerce customers are found beyond the country’s biggest cities. Households in
Norrlands inland municipalities that make frequent order of goods online. The municipality of
Storuman, tops the list where an average household got 12 packets delivered to them late the
previous year. However, big municipalities the likes of Stockholm and Malmo can be found at

the bottom list. An approximate of one in ten consumers bought something online using their
mobile devices. Eight out of ten online shoppers answered that it’s very essential what the total
price will be in order for them to do an online shopping. Important reasons for Swedish
consumers to buy something at an online store are clear product information and of the fact that
this goods are easy to find on the site. When questions were asked of how the consumers would
like the goods to reach them on the goods they ordered they said they would go for deliveries this
was 53 percent of them. Four in ten consumers would like to pick up at a physical store
themselves. A slight more, 3 percent of the consumers said they would want the deliveries done
during the evening although it would cost them extra. Altogether ecommerce now accounts for 6
percent of the total retail sales in Sweden. One in five consumers even abandoned an online
purchase because they were not in a position to choose the delivery option. Blom comments that
the difference between the demand for shopping options and the range of online retailers who
offer this, shows a great potential for growth which in the same way, getting to choose your
preferred payment method is now an integral part of ecommerce, the consumers should be able
to choose how they like and wan6t their goods delivered; either at home, work nor where to pick
up their products.
In Sweden, full assorted grocery stores are more popular than both dinner kit solutions and
specialty grocery stores. One in two persons, who has shopped for groceries online, did this in a
full-sized grocery store. The popular products are heavy and bulky products and hence
consumers do not need to carry these in bags from the offline supermarkets which is an inclusive
of fruit and vegetables, chocolate and dairy products. The consumers are becoming more
accustomed to shopping online with more players appearing on the market and an increased
digitalization which drives growth for groceries online. Most consumers’ say it is very

convenient for them to buy food online as it is convenient and also there is a wide product range
available and it also saves time. Most of them said they will still buy food online the coming year
and they recommended buying food digitally to others.
Online grocery buyers prefer computers over any other device when it comes to the making of
their purchases online. A large percentage said they used a desktop pc or a laptop while doing
their shopping for groceries on the web. The preference is due to a larger screen size of the
computers and the ability to see more than one product at a time in comparison to the phones.
Some respondents gave the drawbacks of shopping online for groceries. The shipping costs,
products are more expensive online than in the physical stores, there is also the desire for the
consumers to see the products before they buy them and the argument that it is fun to shop in
stores, are the most popular drawbacks the respondents gave.

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