The entire grocery landscape changed when Seattle-based Amazon bought Austin, Texas-based Whole Foods Market Inc. in 2017. Before the acquisition, grocery retailers were thought to be somewhat protected from the threat of eCommerce, primarily because of the challenges and expenses inherent in delivering perishable foods to consumers’ homes, explains Bob Hoyler, senior analyst at Euromonitor International, Chicago. Amazon’s entrance into the market, however, brought the threat to life.
“Since then, grocery retailers across the country have scrambled to adapt by accelerating planned pivots to omnichannel retailing,” Hoyler says. “Many of these retailers have partnered with same-day delivery services, such as Instacart and Shipt, in order to offer same-day grocery delivery service to their customers. Additionally, many of these retailers have been aggressive in expanding click-and-collect ordering and curbside pick-up services to a host of additional store locations to better cater to time-strapped consumers.