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U.S. Online Grocery Shopping Takes Off but Remains a Challenging Channel

  • ID: 4826106
  • Report
  • Region: United States
  • 14 Pages
  • Mercator Advisory Group
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2019 a Breakout Year for U.S. Online Grocery Ordering

FEATURED COMPANIES

  • Ahold Delhaize
  • BJ’s Wholesale Club
  • Giant
  • Kroger
  • Postmates
  • Smart & Final
  • MORE

Driven by growing consumer e-commerce and advances in grocery order fulfillment, U.S. online grocery sales continue to increase to record levels. National and regional grocery chains are making major investments in technology and delivery resources to address this online sales channel. A new research report, U.S. Online Grocery Shopping Takes Off but Remains a Challenging Channel, assesses current industry challenges and opportunities as well as future considerations and implications for the grocery industry.

“Consumers want convenience and immediacy in their everyday shopping routines. Grocers have been late to the online party, but now they are going all out to support customers that prefer online shopping. But grocery order fulfillment is labor-intensive and last-mile delivery is expensive, so the online channel will be financially challenging for grocers.” commented the author of this report.

Highlights of this research report include:

  • Competitive industry forces impacting the grocery industry
  • How e-commerce has become the virtual grocery aisle
  • Supporting role played by third-party delivery companies
  • Market share data estimates of leading U.S. online grocers
  • Obstacles to consumer adoption of online grocery ordering
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Ahold Delhaize
  • BJ’s Wholesale Club
  • Giant
  • Kroger
  • Postmates
  • Smart & Final
  • MORE

Executive Summary

Introduction

Dynamic Industry Forces Buffet Grocery Industry

  • Cutthroat Competition in Most Metro Regions
  • International and Local Entrants Increase Competition
  • Pricing Power Proves Elusive
  • Restaurant Meals and Takeout as Substitute Products

E-Commerce Becomes the Virtual Grocery Store Aisle

  • Peapod Started the Current Online Grocery Business Model
  • Grocery Industry Late to Adopt E-Commerce Channel
  • Logistics and Technology Enhancements Enhance Online Ordering Process
  • Third-Party Delivery Companies Play a Key Supporting Role
  • Online Grocery Takes Off and Spurs Competition
  • Challenges to Consumer Adoption of Online Ordering

Conclusions and Implications

References

  • Related Research
  • Endnotes
Note: Product cover images may vary from those shown
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  • Ahold Delhaize
  • Albertsons
  • Aldi
  • Amazon.com
  • BJ’s Wholesale Club
  • Costco
  • Food Lion
  • FreshDirect
  • Giant
  • H-E-B
  • Hannaford
  • Instacart
  • Kroger
  • Lidl
  • Market Basket
  • Peapod
  • Postmates
  • Publix
  • Sam’s Club
  • Shipt
  • Smart & Final
  • Stew Leonard’s
  • Stop & Shop
  • Target
  • Trader Joe’s
  • Walmart
  • Wegmans
  • Whole Foods
Note: Product cover images may vary from those shown
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