It is learned that due to the impact of the epidemic, consumers in the entire grocery market have gradually shifted from offline shopping to online shopping. Data shows that last year, the proportion of online grocery retail sales in the entire grocery market increased from 3.4% to 10.2%, totaling US$106 billion. It is expected that by 2025, this figure will increase to 21%, about US$250 billion.
In recent years, some large supermarkets have also invested heavily in the online grocery industry. According to industry analysts, Amazon's online sales will nearly double to $26.7 billion in the next five years, and Amazon may surpass Walmart to become the largest online grocer in the United States . Walmart's sales are expected to reach only $19.1 billion by 2026.
Amazon is currently in a period of crazy expansion in online retail. Its Whole Foods supermarket delivered more than three times more orders last year than in 2019.
Not long ago, Amazon announced that it would charge customers for food delivery from Whole Foods supermarkets, including Prime members who pay $119 per year, starting on August 30. This policy may put it at a disadvantage in its competition with Walmart. It is reported that Walmart members who pay $98 per year can enjoy free same-day delivery service.
Amazon has invested a lot of money in logistics, which amounted to $58.5 billion last year alone, up 45% from 2019, far exceeding the $25.2 billion it earned from Prime membership fees. Although the new policy will help narrow the gap, it does not seem to have much effect overall.
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