Grocery shopping online: Amazon-vs-Wal-Mart-vs-Kroger

[motorman]

Originally Posted by Briolat21

As far as unsustainable, in a technical sense, they only have to "sustain" the model until they've obliterated all competition.

Then they have an addicted/conscripted consumer base, and they can almost do what they want.

I do agree that it's tough for perishables to go online. Companies like Blue Apron are trying that, but they're using their recipe curation as the cost+ to get you to try. But services like that certainly aren't reasonable for anything other than a fairly upscale demographic.

I occasionally buy non-perishables from Amazon, but it's always been because it was a specialty item I couldn't find locally. (oddly, like spoonable equal. It's impossible to find for me; and I can buy it in a case from Amazon, thereby keeping my 89 year old diabetic father in sweetened coffee for about 4 months). I never think "i need cornflakes, time to get out my Amazon app".

Of course, I'm old. So maybe that is how 20 somethings are thinking...

Back to some of your observations concerning on line grocery shopping - however, only touching on Amazon, while focusing on Blue Apron...

First of all, although I'm intrigued by these two trend setting companies, I'm in no position to offer expert commentary on either one. Far above its competition (and, subsequently, my comprehension of anything it might do next) Amazon has blasted out an awesome retailing niche it now dominates. Meanwhile, in a more limited niche, Blue Apron seems to have accomplished exactly the same thing.

Up until recently, I admit that I knew nothing about Blue Apron, other than it provided on line meals. Such a service never appealed to me personally, namely because my spouse and I are experienced cooks who either own or are able to acquire anything needed for most any type of culinary preparation. Therefore, we would scoff at ourselves if ever we resorted to such "man/a can/and a plan" meal preps.

Nevertheless (as you mentioned above), in targeting an affluent demographic the way it has, Blue Apron has undoubtedly created a superb meal service. (Their website, alone, really impressed me.) It's easy to see how affluent, busy suburbanites, who may also lack resources and/or skills to do elaborate preps, would become interested:

https://www.blueapron.com/?cvosrc=re...utm_source=gdn

Therefore, being the sleuth I am, I suspect that Kroger will soon be entering such line grocery meal preps with a similar offering, as these two business articles indicate:

http://www.bizjournals.com/cincinnat...pron-like.html

Kroger launching Downtown cooking school

Needless to say, this announcement by Kroger's CEO combined with his company opening a cooking school for its own chefs says much. Just stay tuned.

[PerryMason614]

1. Fine for the stuff in the middle of the store, but I don't want any flunky picking out my perishables.

2. I'd rather do my shopping myself and keep the extra $5 or whatever it costs in my pocket.

3. Walmart is no risk to Kroger whatsoever. Krogers prices are pretty good and often even better than Walmart. Walmart's grocery section stinks. It always has, they haven't corrected it, and I believe it always will. I still don't understand how they get the kind of market share they get. They are not cheap and their products, especially store brand products, are awful. I am not a Walmart hater, I like their department store side. But their grocery side is awful.

4. Meijer is good, but they have gotten equal to or slightly more expensive than Kroger. They used to be far lower price than Kroger but Meijers still has good sales on meats and produce. That shows you what a good job Kroger has done cutting all the fat out of their operations. They are able to keep their prices competitive.

5. You still have to watch Kroger on paper poducts and health and beauty. I found them to be more expensive than Meijer.

6. Kroger store brands are pretty good and the price is right. In fact, this is where Meijer fails if you ask me. Their store-brand goods tend to be a little bit more in price than Krogers.

[motorman]

^

Originally Posted by motorman

...I would appreciate that any comments focus on business aspects of online grocery shopping, rather than personal experiences in shopping with these three retailers.

(Post #1)

Originally Posted by motorman

^ Before adding anything here, I need to clarify my misleading request made earlier. What I meant to say is that personal experiences are fine, as long as they stay focused on online grocery shopping, rather than on generalized concerns, such as who has the best meats, the worst checkout lines, or the freshest produce, etc.

(Post #6)

[motorman]

In online grocery shopping, Walmart moves into Kroger's backyard...

From the Cincinnati Business Journal:
http://www.bizjournals.com/cincinnat...ti-online.html

[motorman]

Kroger acknowledges the growing threat of "meal kit services" (especially Blue Apron and Hello Fresh) to its own in-store customer spending...

From the Cincinnati Business Journal:
http://www.bizjournals.com/cincinnat...lue-apron.html

[Sarah Perry]

Originally Posted by motorman

Kroger acknowledges the growing threat of "meal kit services" (especially Blue Apron and Hello Fresh) to its own in-store customer spending...

From the Cincinnati Business Journal:
http://www.bizjournals.com/cincinnat...lue-apron.html

I found this from the article significant: "Market research firm Packaged Facts estimates meal kit services will generate $1.5 billion in sales this year. Kroger by itself cranked out $110 billion in sales last year. But meal kit services are growing fast and showing no signs of slowing."

So at this point the market percentage is miniscule. Because these services are a fairly new development, I'm sure there IS plenty of room for more growth, but I'm also sure there must be a very firm ceiling on the number of consumers who (a) want to pay $10 for a meal which they (b) still have to cook at home. The price point/convenience factor is simply something I can't comprehend, although I'm sure there's some appeal to people who have a combination of a high income, busy schedule, and minimal food preparation skills.

[motorman]

Originally Posted by Sarah Perry

I found this from the article significant: "Market research firm Packaged Facts estimates meal kit services will generate $1.5 billion in sales this year. Kroger by itself cranked out $110 billion in sales last year. But meal kit services are growing fast and showing no signs of slowing."

So at this point the market percentage is miniscule. Because these services are a fairly new development, I'm sure there IS plenty of room for more growth, but I'm also sure there must be a very firm ceiling on the number of consumers who (a) want to pay $10 for a meal which they (b) still have to cook at home. The price point/convenience factor is simply something I can't comprehend, although I'm sure there's some appeal to people who have a combination of a high income, busy schedule, and minimal food preparation skills.

Much like you, I'm curious about the extent of Kroger's plans to compete with Blue Apron. It will either implement meal kit services similar to those of Blue Apron or lure Blue Apron's small demographic of "foodies" back into the supermarket by offering them attractive in-store alternatives that they can take advantage of while shopping for other routinely needed items. People with busy schedules will greatly appreciate and pay for the added convenience.

Some of these alternatives have been successfully tried during major holidays and sporting occasions when Kroger prepares the pre-selected foods to be picked up by the customer. This limited service could be greatly expanded to include everyday meals. This certainly would explain the chef training center that Kroger is opening in downtown Cincinnati and its recruitment of chefs from across the nation.

However, this is just one of several challenges Kroger faces. The entire brick and mortar shopping scene is changing radically and rapidly.

[motorman]

Originally Posted by motorman

...However, this is just one of several challenges Kroger faces. The entire brick and mortar shopping scene is changing radically and rapidly.

Three recent news articles (especially the last one) say much:

From Cincinnati Business Journal:
http://www.bizjournals.com/cincinnat...st-kroger.html

From Cincinnati Business Journal:
http://www.bizjournals.com/cincinnat...rice-cuts.html

From the Cincinnati Enquirer:
* Amazon may be planning 'click and collect' grocery

[motorman]

Several major developments in Kroger's online grocery shopping...

From the Cincinnati Business Journal:
http://www.bizjournals.com/cincinnat...nology-in.html

From the Business Journal:
http://www.bizjournals.com/cincinnat...-location.html

From the Cincinnati Enquirer:
Kroger acquires Murray's Cheese