Amazon’s acquisition of Whole-Foods is bound to have a huge impact on the grocery store market. Companies who were banking on the ritual of people going to the grocery store have to be feeling the heat. The fact is the largest e-commerce company in the world just jumped into the grocery market. If you don’t react and adapt you are bound to be left behind in the ever growing online marketplace. The acquisition brings up the importance of businesses to establish an e-commerce presence.
According to CNBC, by the year 2025, 20% of grocery sales will be online. This was reasonably predicted in January of 2017. Amazon announced the acquisition of Whole-Foods in June of 2017. This completely changes the predicted growth rate of online grocery shopping. Grocery stores who were expecting a slow transition to offering their products online need to act much quicker now. USA Today stated, “the move will force regional grocery stores and online grocery delivery services to step up their service, but won’t annihilate them.” Only time will tell if Amazon’s purchase will have an effect on the grocery market and if you look into other market places it’s stepped into, it most likely will have an effect. This acquisition should motivate outlets more than ever to provide the best shopping experience to customers. Not just in store, but most importantly online because that’s where the future lies.
For grocery stores that haven’t dabbled in the online grocery market it becomes critical for them to make the change and initiate an e-commerce platform. According to Business Insider, 43% of all online retail sales went through Amazon in 2016. With this fact, one can only assume that Amazon is going to gain market share from other grocery companies. Grocery has been one of the last frontiers relatively not disrupted but now that Amazon is here, it’s going to shake up the game. Online grocery companies like Instacart, PeaPod, and Shipt have earned their small percentage of market share but have fraction of the scope Amazon offers.
It is time that companies to realize how important e-commerce platforms really are. If you haven’t begun the build, it is time to start. If you have already started but haven’t given it your all, you must put it into overdrive. Even if the foundation of your company was built on traditional methods of sales, shipping, and advertising, it’s not too late to make the transition. Many people feel intimidated because they don’t have the skillset to build an online platform, this is completely ok. It’s best to have professionals build a platform that will be slick and make your company competitive in the crowded marketplace. The acquisition of Whole-Foods should not deter anyone from continuing to grow their business, nor stop any new companies entering the market place. The purchase will require companies to change or be left in the dust. The future is here. Time to make it happen.