The coming of age of online grocery in Europe

Online grocery in Europe has established itself as a mainstream channel. While its growth has moderated from earlier peaks, it continues to outpace total grocery sales and is expected to do so for the foreseeable future. Established grocers and a few specialized players dominate the channel, but profitability remains challenging due to high fulfillment, technology, and last-mile delivery costs. As a result, some retailers are reassessing their e-commerce ambitions – either avoiding the channel, as most discounters have done, or increasingly relying on external specialists. Looking ahead, we think the market is likely to consolidate around a handful of strong omnichannel retailers, complemented by one or two specialists and delivery platforms such as Uber Eats and Deliveroo. Adapting operations, pricing, and product formats to the economics of e-commerce is a must to scale up and participate sustainably in this evolving channel.