Online grocery sales are going to be the future of the supermarket, but even among tech-savvy millennials, not many consumers are choosing to shop this way—yet.
The back story: While other areas of retail have long been ravaged by online rivals, the grocery business was relatively safe—for a time. However, this industry, too, has started to feel the competitive pinch in recent years. First it was a challenge from big-box stores like Target (ticker: TGT) and Walmart(WMT), whose deep pockets allowed them to stomach the industry’s low margins. Then Amazon.com (AMZN) purchased Whole Foods, leading to more panic about pressure on traditional players.
Of course, supermarkets haven’t been standing still while this is happening: They’ve fought back by adding cafes and ready-to-eat hot meals, buying businesses that make meal-preparation kits, and offering their own delivery services.
To read the rest of the story, please go to: Barron’s
