Customers migrating to online grocery stores could force physical ones to shut down

New Ideas in MarketingEssential news for marketers, summarised by YouGov
January 10, 2020, 2:31 AM UTC

Brands must be open to experimentation to identify how they can evolve.

This article cites a study by the Food Marketing Institute for Nielsen stating that online sales will reach 20% of total grocery by 2025. While industry cynics claim that technology won’t allow online grocery to thrive and consumers won’t adopt it, Walmart’s Alphabot demonstrates that online grocers can have a sustainable profit-making business.

The author comments on what the value of a store would be if customers went online. While industry experts talk about changes in grocery, the “economics of physical grocery stores” is often neglected.

The author anticipates that many big grocery stores will be compelled to shut down. However, this will create an opportunity for smaller stores to crop up locally in order for customers to “fill in” between online orders.

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[3 minute read]