Once again with the recent bankruptcy of various Super markets the media again is calling for doom and gloom for grocery providers who grew to big, offered far to much slow moving product and failed to modernize to suit consumers needs.
But rest assured it’s happening again and not for the first time, as business buys up other stores, pushed out the little guy,’and right sized thru down sizing.
In Greenville 9 places exist to buy groceries if I’m counting correctly, included in this are C-stores, Grocery stores, corner markets and Dollar Stores.
But here’s the facts that you need to know about the grocery business in general.
The vast majority of grocery shopping still takes place in traditional brick-and mortar stores. But according to industry experts, this pattern may change during the next decades. More and more tech-savvy retailers now offer grocery delivery options for their customers in the United States. Like the milk man used to do in the past, retailers bring food items right to your doorstep. As of 2017, some 31 percent of U.S. consumers were likely to buy groceries online. In total, U.S. online grocery sales amounted to about 14.2 billion U.S. dollars in 2017 and are expected to rise to nearly 30 billion U.S. dollars by 2021.
Among all the online food and beverage retailers, the e-commerce giant Amazon had the highest market share in 2016, followed by Walmart and Kroger. In recent years, Amazon has introduced Amazon Fresh and Prime Pantry, two online grocery shopping services. Amazon’s food and beverage sales are projected to rise from approximately six billion dollars in 2015 to over 23 billion dollars in 2021.
For time-strapped consumers online grocery shopping is a convenient and time-saving option. In a 2016 survey, approximately 72 percent of consumers who had tried online grocery shopping rated their experience positively. However, only nine percent of consumers placed an online order for groceries at least once or twice a month in the United States in 2017. Shoppers often like to see and touch products before purchasing them, or simply enjoy the experience of shopping in stores, factors which are both obstacles for the online grocery shopping industry. Lower prices and convenience are both major factors that would persuade more consumers to give online grocery shopping a try.
The emerging Generation Y, or so called Millennials, is known as a heavy internet user generation. They are characterized as open-minded customers when it comes to in-store apps or the usage of online grocery services. Keeping that in mind, it is not surprising that Millennial shoppers were the most likely to use online channels for grocery shopping in 2017.
The economic cost of that last mile delivery will be the key as Uber, Lyft, Grub Hub, And self driving cars are all possible options that major retailers are exploring. This however is nothing new, as a child we had a milk man, an Egg Man, Schwann Icecream delivery and the local grocer who would deliver to my Grand Mother in a van and even carry in her large bags of flour and of course Sears and JCP catalogs were once king. It would seem that we’re going back to the future, not setting trends and those who will survive will not be the innovative type but those who look at the lessons of the past and protect the model in a realistic way.
Credit Mercerstar news