Amazon leads online grocery market, but remains a modest player

July 5, 2019 by
Nico Hoeijmans

Amazon foodAmazon is currently leading the online shopping market in the United States. According to Bloomberg, the online retailer’s turnover of 2018 was worth at least 25.4 billion dollars. However, Brick Meets Click researchers say that amount only equals 5.5% of the total revenue in the United States. 

Amazon took over the chain ‘Whole Foods’ approximately two years ago, for 13.7 billion dollars at the time. This chain is now being used as a collection point for online orders. Amazon nowadays uses the chain as a collection point for online orders, with the use of lockers, while Prime members receive discounts.

At the acquisition, it was expected that Amazon would very quickly become a major player in the field of (online) shopping. However, that turned out more disappointingly than expected.

The competition has not been standing still either. Supermarket Albertsons started with online orders via in some American regions as well, and department store Target took over Shipt, which delivers groceries to the customer’s home. Next to this, Walmart rolled out Delivery Unlimited in June, which is also a delivery service for groceries.

Growing number of online grocery shoppers

The number of consumers who order groceries online has grown considerably, by 28%. Nevertheless, the turnover of online ordered shopping remains low. Hardly anything has changed in the market ratio. 

Walmart remains by far the largest supermarket in the US with a quarter of the market share. Kroger follows at a greater distance with 11%. Albertsons is even further behind, just like Costco. Amazon belongs with other parties to the 47%  in the category ‘other’.

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