Traditional supermarkets are losing market share to e-commerce, fresh format, dollar, and limited assortment stores
Assuming that food inflation will average around 3% over the next five years, Willard Bishop estimates that traditional supermarket sales will not keep pace, and will continue to lose market share as consumers choose to shop other formats, from Amazon to Aldi.
In a webinar hosted by the Food Institute analyzing the 2013 data, Willard Bishop partner Craig Rosenblum said that while online grocery shopping lags behind other segments (accounting for 1-3% of grocery retail sales - depending on whether you focus strictly on food and beverages or include home/personal care items bought from online grocers too), it will ultimately catch up.
While all retailers are developing different ranging, fulfilment, delivery, and pricing models, he said, “e-commerce is no longer optional.”
Click HERE to find out more about Amazon Prime Pantry, a new service enabling Amazon Prime members to fill a four-cubic foot box with ambient goods for a flat $5.99 fee for delivery in 1 to 4 business days.
Click HERE to find out more about Amazon Fresh, which is available to shoppers in parts of northern and southern California and Seattle and offers same-day and early morning delivery on fresh as well as ambient items.
