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The fight for the $800 billion 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 the past year Walmart, Kroger, Costco, and Target have driven down costs and introduced delivery capabilities in new regions, cutting into Amazon’s market share. Meanwhile, new business models are thriving. Six-year-old Instacart, for example, has secured a $7.6 billion valuation and a loyal following by building a platform for grocery delivery and partnering with more than 300 retailers.

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Click the link below for the article:

https://hbr.org/2019/04/what-the-grocery-stores-holding-their-own-against-amazon-are-doing-right?utm_source=pocket-newtab

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