Amazon is losing the battle for online groceries
Life gets busy. Between my work, hobbies, family time, and spending time with friends, I barely have time to remember to eat. Which is why online grocery shopping is such a convenience. Not just for me, but for many other Americans. But while it might be easy to get on Amazon and order groceries ...
Overview
Life gets busy. Between my work, hobbies, family time, and spending time with friends, I barely have time to remember to eat.
Which is why online grocery shopping is such a convenience. Not just for me, but for many other Americans.
But while it might be easy to get on Amazon and order groceries along with pretty much anything else you need, it seems that the online tech giant isn’t as popular for deliveries as it might seem.
At least, not when it comes to grocery shopping.
The changing landscape of deliveries
Grocery shopping has changed rapidly in recent years. You no longer have to go in person to the store to get your favorite bag of chips and something for dinner.
In many cases, you can order on an app and get your food delivered to you in such a few hours.
And more Americans are taking advantage, according to a study from Coresight Research.
The annual report found that home delivery is the most significant way that Americans get groceries, Supermarket News reported. According to the Coresight survey, 56.3% of Americans have purchased groceries online, after a two year decline.
Details
The increase in popularity is likely due to more delivery options and convenience, as more supermarkets offer more online shipping and curbside pick up options.
And while Amazon has long been pushing its fresh grocery service, it’s not the most popular way to get produce.
Amazon no longer number one
The Coresight survey found that Walmart is the most used online retailer for grocery delivery, with 59.2% of shoppers using the retailer.
Amazon ranked second at 45.1%, while Target, Costco, and Kroger followed, Supermarket News reported.
The increase in delivery has increased fulfilment costs, the report said, with retailers needing to rely more heavily on technology like AI. DETAILS
Grocery stores investing in AI
- The number of grocery stores using AI rose to a staggering 68% in 2026, according to a survey from FMI the Food Industry Association, Grocery Dive reported.
- Walmart has also expanded its use of AI, with key investments in its agentic shopping assistant Sparky.
- Meanwhile Albertsons is using AI to combat food waste, TheStreet reported.
The Coresight study found that more people were also getting deliveries instead of curbside pickup since the research firm started keeping track. Two-thirds of online grocery shoppers using delivery, compared to one-third that pickuped their orders.
This is likely due to more subscription services and the rise of rapid fulfilment.
More retail
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- Feds allege your expensive grocery store eggs were rigged
- Sprouts takes on rival Whole Foods with this key move
The survey found that 37.9% of U.S. consumers used rapid delivery (which includes same-day delivery or delivery in under two hours) for their online grocery shopping in the last 12 months, according to Progressive Grocer.
In other words, what was once a niche perk in a few key cities is rapidly becoming the norm nationwide. Amazon has even broadened its same-day network and launched a 30-minute delivery service to keep up with demand, TheStreet reported.
Related: Bank of America argues Amazon retail rival is major AI winner
Source
Originally published at www.thestreet.com.
