• Americans - Grocery Store Trends

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    August 08, 2019
     
    TOP STORIES
     
    Despite online grocery retail's rise, physical stores are doing just fine.
     
     
     
    Americans like their grocery stores
     
    Ignore the headlines that scream grocery stores are becoming extinct due to the battle between online and brick-and-mortar grocery retailing. They’re not true. What is true is that online is now the fastest-growing grocery retail channel, with a compound annual growth rate of 19.5%, but despite that double-digit growth rate, online still represents only 2% to 5% of the $743 billion U.S. grocery retail market. The truth is that grocery stores are in a new period of vibrant growth, fueled in part by the rise of organic fare, healthy options and specialty items in the aisles, as well as innovations like prepared foods and meal kits. Against that backdrop, online isn’t replacing grocery stores — it’s augmenting them. What might this mean for brick-and-mortar retail in general?