Forbes Article on Turmoil in Grocery Industry
The big question
- How will consumer adoption of online grocery shopping accelerate in the next several years?
- Will the leading companies in the grocery business in the U.S. right now be the leaders in the online grocery business in five to ten years?
Excerpt
What About Amazon?
What’s so remarkable about Amazon in grocery is how successful they haven’t been, even after buying Whole Foods. Success in grocery is mission-critical for Amazon because Amazon’s stock price is based on growth and grocery is one of the last places it can find meaningful growth in U.S. retail. With a near-zero cost of capital, there’s virtually no limit to the resources Amazon can commit to online grocery so you can be sure they are not going away silently. Earlier this week, the Wall Street Journal reported that Amazon has plans to open numerous grocery stores of 20,000 to 40,000 square feet, with 12 leases for such stores in the Los Angeles area already signed.
