Food and Drink E-Commerce in the US

PROSPECTS

Click-and-collect emerges as the engine of growth in food and drink e-commerce

Over the last few years, much of the conversation surrounding the growth of food and drink e-commerce in the US has focused on delivery. This makes a certain amount of sense, as the proliferation of grocery delivery options available to US consumers has undoubtedly been one of the most important factors driving the upward trajectory of digital food and drink sales.

Grocery retailers rethink digital order fulfilment

The example of e-commerce giant Amazon.com Inc suggests that building gigantic, automated, strategically-located distribution centres is likely the best way to support delivery orders of shelf stable items.

Meal kits fail to live up to expectations

As recently as 2017, subscription-based meal kits were touted as being the future of food and drinks e-commerce in the US. However, the sales growth of these products – which come pre-packaged with all the necessary ingredients needed to cook a specific recipe and are delivered straight to customers’ doorsteps – has tapered off dramatically over the last two years.

COMPETITIVE LANDSCAPE

Strength in food and drink e-commerce fuels Walmart’s digital sales growth

In a bid to stave off the mounting threat that internet retailing leviathan Amazon.com Inc poses to its position as the leading retailer in the US, Walmart Inc has invested billions over the last few years to improve its technological infrastructure and e-commerce capabilities.

Amazon slashes fees on same-day grocery delivery for Prime members

Thanks to its many distribution centres and its nigh on unparalleled logistics network, Amazon.com Inc – the retailer that has done more than any other to set the standard for delivery of online orders in the US – has long held a tremendous advantage when it comes to e-commerce sales of shelf stable foodstuffs.

Instacart turns to curbside pick-up

Despite being one of the leading players in the US food and drink e-commerce space, Instacart is not a retailer, per se. Instead, it is a service provider that grocery retailers can opt to partner with in order to offer same-day grocery delivery from their stores.

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