Amazon has shared its latest plan to infiltrate the grocery market. The plan aims to blend the convenience of online shopping with the in-store experience.
The retail giant detailed its plan at its latest expo held outside Nashville. A trial of the plan is currently underway at Whole Foods shopfront in Pennsylvania.
Customers will be able to purchase everything from fresh produce in the physical store while ordering electronics online and collecting it before leaving the premises. This “all-in-one” approach is expected to create more convenience for customers.
Walmart is a significant competitor for Amazon in the grocery market. Its strong omnichannel strategy gives Walmart the upper hand, using its physical stores alongside its growing online capabilities.
Amazon’s five strategies in the grocery market
Amazon has built a unique logistics network with its own fleet, offering customers some of the fastest delivery options out there. However, when it comes to fresh produce and the grocery market, Walmart is taking the lead.
The retailer is now trying to compete strongly for this market share and global dominance. Here’s what they are likely trying to achieve.
Expand its market dominance
The global grocery market is massive, and it’s expected to reach $19.34 billion by 2031. Amazon has not yet fully captured this market.
By entering the grocery space aggressively, they can gain a larger share of customer spending, especially on essential foods.
Create an all-in-one shopping experience
Customers want the option to shop online and in-store. According to Shopify, omnichannel shopping has become the norm. 75% of US consumers research and purchase both in-store and online.
Amazon wants to cater to all its customers’ needs, hoping to be that central hub. When customers don’t have to choose between online and in-store shopping, there is no need to shop elsewhere.
Personalize the shopping experience
Valuable data is collected with every purchase. By integrating groceries into the shopping experience, the data on customer behavior gets more specific.
This allows Amazon to personalize recommendations and improve the overall customer experience across all its platforms.
Channel traditional grocery chains
Amazon is directly challenging established grocery chains like Walmart and Australia’s Coles and Woolworths. Coles and Woolworths reportedly control about 67% of Australia’s grocery market.
Offering a more tech-driven and faster experience, Amazon could push other retailers to do the same.
Strengthen their delivery network
Investing in the grocery market could give Amazon the opportunity to optimize its supply chain.
This is an opportunity to test new delivery models, including same-day grocery delivery, further refining its logistics infrastructure.
NOW READ: The fast delivery race heats up as Walmart strikes back at Amazon
Share this article
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
