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Online grocery sales: Successful revival of a failed strategy

  • December 2014
  • 22 pages
  • MarketLine
Report ID: 3662120

Summary

Table of Contents

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Introduction

Despite the spectacular failure of Webvan, the US based pioneer of e-groceries, in 2001, entering the online market seems inevitable for grocers who do not want to lose the race for market leadership in the omnichannel world. Innovative, more cost-efficient logistics models are successfully reviving strategies that failed before, changing the traditional grocery sales scene.

Features and benefits

* Save time carrying out entry-level research by identifying the size, growth and leading players in the online grocery market
* Use market analysis to determine the competitive intensity and therefore the attractiveness of the online grocery market
* Find out who are the leading companies in the online grocery market

Highlights

The global market for online groceries is expected to increase at double digit rates towards 2018, as consumers continue to embrace internet shopping. Low online penetration and significant pent-up demand create business opportunities for grocers.
While grocery is the biggest category in retailing, it is also the most resistant to the advance of online shopping, as grocers remain reluctant.
High delivery costs, low margins and slow profit generation, coupled with the spectacular failure of early business pioneers, discourage many potential players.

Your key questions answered

* What is the size of the global online grocery market?
* Who are the main players in global online grocery market?
* What are the pitfalls of the online grocery business and the main reasons behind its reluctant growth?
* How can retailers satisfy online grocery shoppers?
* Why did Webvan fail?

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