Grocery Next Frontier For Online Growth

Walmart may be the nation’s largest grocery retailer, but Amazon is gaining ground with the acquisition of Whole Foods, which it’s pairing with its Prime membership to help grocery grow faster than any other segment at Amazon.

A report from e-Marketer Retail estimates food and beverage categories will grow by 40.1% at Amazon this year. That’s equal to $4.75 billion in online grocery sales. Amazon is the leader in online grocery sales and Walmart is a distant second, according to industry reports.

Groceries are one of the last frontiers for online penetration and Walmart, Kroger and other large grocery retailers are still trying to figure out a sustainable way to deliver groceries in suburban America. It’s still anyone’s race to win given online grocery represents only about 2.8% of total sales. Analysts agree the retailer who can best solve the logistical issues with delivery of perishables to shoppers efficiently and cost-effectively has the best chance to win the spoils.    MORE

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