Can Publix, Kroger, and Wal-Mart Survive the On-Slot of Online Competitors?

Without incorporating quality Ready-2-Eat and Heat-N-Eat grocerant niche fresh prepared food into the mix can Publix, Kroger, and Wal-Mart survive the on-slot of Online competitors?  Well our own Grocerant Guru™ was wondering himself. Our Grocerant Guru says that all three will survive the next 5 years however if they do not  improve the fresh food focus, quality, and consistency they may look quite a bit different some will have even fewer locations than they have today. 

In a recent study from Nielsen, focusing on the online grocery industry  they found it is growing like never before; “A quarter of the global respondents of the survey were already ordering grocery products online for home delivery. This certainly indicates the gradual shift of users to the online market from the traditional medium of grocery purchasing.”

Even more interesting in the report is that more than “half (55%) of the respondents who haven’t ordered grocery online yet are willing to use it in the future. This a solid hint of how big the online grocery industry could turn out to be in future.”

Here is why legacy retailers need to worry.  Many online retailers are also introducing an automatic online subscription service, in which orders get routinely replenished at a specified frequency. The report says that 14% of its respondents have already subscribed to such service. While, more than half (54%) of the respondents were willing to try their hands on such subscription services in the future”

Publix, Kroger, and Wal-Mart are huge, so why worry about online grocery start-ups?  Here’s why some of these start-up’s are huge as well including AmazonFresh, Google, Instacart.  Then there are others Groceries-Express.com, AmericaGrocer.com, NetGrocer.com, FreskDirect.com, Peapod.com, Urbangrocery.com and we could go on.  

The study also found; “The idea of Virtual stores for grocery is also gaining popularity day by day. 13% of the global respondents of the survey said that they were already using a virtual store. On the other hand, almost every six in ten (58%) were willing to check out the virtual stores in the upcoming time.”

It’s is estimated that legacy grocery stores could lose 18% of today’s sales to these new no non-traditional fresh food grocery retailers over the next five years according to our Grocerant Guru™. Thus, the need to improve the quality, positioning, and consistency of all grocerant niche Ready-2-Eat and Heat-N-Eat fresh food within the store while there is still time.  

Are you interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information.