In this file:
· Millennials Aren’t Buying Groceries Online — Yet. Retailers Should Get Ready.
· Most shoppers are still leery of buying their groceries online. But delivery in the US is set to 'explode'
· Amazon, Walmart may be starting a shipping war. FedEx, UPS will need to keep up or get shut out.
Millennials Aren’t Buying Groceries Online — Yet. Retailers Should Get Ready.
By Teresa Rivas, Barron's
Feb. 5, 2019
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.
The plot twist ...
Moving ahead ...
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Most shoppers are still leery of buying their groceries online. But delivery in the US is set to 'explode'
In the U.S., a mere 3 percent of grocery spending takes place online today.
A new study by Bain & Co. in collaboration with Google finds shoppers are still reluctant to try delivery services and often don't stick with them.
But the firm predicts grocery delivery will ultimately take off as companies continue to invest in it.
Lauren Thomas, CNBC
Feb 4, 2019
You might think that just about everybody is buying groceries online today, as retailers like Walmart, Kroger and Amazon race to perfect their delivery services and tout their abilities to get food to shoppers' homes in under an hour. But that's not exactly the case.
Grocery shoppers are still concerned they're being charged higher prices online and complain about delivery drivers being late, among other disappointments.
In the U.S., a mere 3 percent of grocery spending takes place online today. Americans haven't been as quick to jump on board with placing their grocery orders from their computers or smartphones, especially when compared with markets like the U.K. and South Korea, where online grocery penetration can be as high as 15 percent.
Only a quarter of consumers have tried an online grocery service in the past year, according to a new survey of more than 8,000 U.S. grocery shoppers completed by consulting group Bain & Co. in collaboration with Google. And only 26 percent of those shoppers, or 6 percent of all U.S. consumers, went on to say they order groceries online more than once a month. Instead, most Americans are taking multiple trips to the grocery store each week.
"We've been early adopters in this country in almost every other retail category," Bain & Co. partner Stephen Caine said. "We know online grocery will explode at some point."
For now, though, grocery chains like...
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Amazon, Walmart may be starting a shipping war. FedEx, UPS will need to keep up or get shut out.
To stay competitive, both retail companies are adding drivers, trucks, and higher salaries with plans to add more.
Daniel B. Kline, The Motley Fool
via USA Today - Feb. 5, 2019
Not that many years ago, consumers would order a product to come through the mail, and it would take weeks to arrive. Sometimes, there was an option to pay more – usually a lot more – for faster service, but the phrase "wait four to six weeks for delivery" was a familiar one.
Those days have gone the way of pay phones and 12 CDs for a penny, as Amazon has fundamentally changed consumer expectations of delivery. The paid Amazon Prime service has made two-day delivery the bare minimum, and that led to Walmart embracing two-day shipping while offering it for free (with certain restrictions).
The problem with offering two-day shipping is that it's expensive and cuts into already thin margins. That has forced both Amazon and Walmart to rethink how they ship items, both to their warehouses and stores and to end customers.
What are Amazon and Walmart doing? ...
Is a shipping war coming? ...
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