HBR Insights Future of Business Boxed Set (8 Books)

 

11

WHAT TO LEARN FROM THE GROCERY STORES HOLDING THEIR OWN AGAINST AMAZON

by Amit Sharma

The fight for the U.S. grocery industry has just begun. Amazon has shaken up the playing field, but traditional grocers have been slow to embrace technologies for online ordering, fulfillment, and delivery. Today online orders make up just 2% of grocery sales (in retail overall, the number is 10%). But e-commerce is quickly growing: Some analysts estimate that by 2025, 20% of grocery purchases will be made online.

And although Amazon/Whole Foods looms large, the e-commerce giant is far from the decided winner. In 2018, Walmart, Kroger, Costco, and Target drove down costs and introduced delivery capabilities in new regions, cutting into Amazon’s market ...