Skip to content
Search AI Powered

Latest Stories

newsworthy

Online grocery sector cooks up fast growth as Amazon and Walmart fight for top rank

Grocers investing in rapid digital transformation while trying to curb costs of delivery services, Edge by Ascential says.

The online grocery sector is on track for steep sales growth between 2019 and 2024, driven by the expansion of fulfillment options and online assortment being offered by industry leaders Amazon.com Inc. and Walmart Inc., a new study says.

Store-based sales will continue to account for the majority of worldwide "edible grocery" sales over that period, but online sales are poised to grow much faster, according to London-based e-commerce analysis company Edge by Ascential.


Online grocery sales currently total just 3.25% of the global grocery sector, or $91 billion of the $2.8 trillion annual sales of the food & beverage category; ambient groceries, fresh groceries, carbonated drinks, fruit drinks, water, hot beverages, beers, wines and spirits.

However, grocers are investing in rapid digital transformation that could drive a compound annual growth rate (CAGR) of 13% through 2024, for a total of $162 billion by the end of the forecast period. The report did not cite the growth rate for brick and mortar-based grocery sales.

The report meshes with recent reports that the growth of online grocery sales is already pushing hot demand for cold-storage warehouses throughout the U.S. And to handle final-mile grocery delivery, automated fulfillment vendors such as Cleveron AS, Takeoff Technologies, and Ocado Group plc are developing refrigerated, robotic parcel lockers and super-dense, urban DCs.

The frantic pace of growth in the sector is being whipped up by a race for global grocery supremacy between Amazon and Walmart, which are forecast to generate e-commerce grocery sales of $15 billion and $14 billion, respectively, by 2024. Those figures will be more than twice as high as their nearest rival, Costco, Edge by Ascential said.

Although driven by competition, the companies are not simply throwing money at the problem, but are seeking to curb their investment in the complex supply chains that come with delivery services, even as they strive to continuously attract shoppers to physical stores.

To hit both goals at once, many retailers are investing in fast, store-based fulfillment or are teaming up with third parties for improved last-mile logistics, said the Edge by Ascential report. Thanks to that rising profile, fulfillment intermediaries are becoming influencers for product discovery and brand selection, and are enabling e-commerce operations for low-cost formats such as discounters, which would otherwise not sell groceries online.

"We're going to see a major shift to online and omnichannel over the next few years with edible grocery," Violetta Volovich, associate analyst and report author for Edge by Ascential, said in a release. "The barriers to adoption and growth in this sector are coming down, and retailers are investing heavily in technology, supply chain and partnerships that will make for an easy, seamless customer experience."

The Latest

Artificial Intelligence

AI: Is it the real deal?

More Stories

Logistics economy picked up speed in January

Logistics Managers' Index

Logistics economy picked up speed in January

Economic activity in the logistics industry expanded in January, growing at its fastest clip in more than two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.

Keep ReadingShow less

Featured

Disrupting the furniture supply chain: An interview with Jay Rogers

Disrupting the furniture supply chain: An interview with Jay Rogers

As commodities go, furniture presents its share of manufacturing and distribution challenges. For one thing, it's bulky. Second, its main components—wood and cloth—are easily damaged in transit. Third, much of it is manufactured overseas, making for some very long supply chains with all the associated risks. And finally, completed pieces can sit on the showroom floor for weeks or months, tying up inventory dollars and valuable retail space.

In other words, the furniture market is ripe for disruption. And John "Jay" Rogers wants to be the catalyst. In 2022, he cofounded a company that takes a whole new approach to furniture manufacturing—one that leverages the power of 3D printing and robotics. Rogers serves as CEO of that company, Haddy, which essentially aims to transform how furniture—and all elements of the "built environment"—are designed, manufactured, distributed, and, ultimately, recycled.

Keep ReadingShow less
chart of GenAI effect on workforce

Gartner: GenAI tools create anxiety among employees

Generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI, according to a survey by Gartner, Inc.

That’s because productivity gains from the use of GenAI for individual, desk-based workers are not translating to greater team-level productivity. Additionally, the deployment of GenAI tools is increasing anxiety among many employees, providing a dampening effect on their productivity, Gartner found.

Keep ReadingShow less
warehouse worker driving forklift between racks

German 3PL Arvato acquires two U.S. logistics firms

The German third party logistics provider (3PL) Arvato this week acquired the U.S.-headquartered companies Carbel LLC and United Customs Services, saying the move would grow its client base, particularly in the fashion, beauty, and lifestyle segments.

According to Arvato, it made the move in order to better serve the U.S. e-commerce sector, which has experienced high growth rates in recent years and is expected to grow year-on-year by 5% within the next five years.

Keep ReadingShow less
photo collage of warehouse tech

Supply chain pros are wary of inflation and labor woes

The top worries that supply chain leaders hope to address with new innovations this year include inflationary concerns (68%) and labor shortages (50%), according to a survey on innovation from the third-party logistics provider (3PL) Kenco.

And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.

Keep ReadingShow less