Page 12 - [STUDY CASE_GROCERY WARS] Report

QUESTION 4

Which company is more likely to dominate grocery retailing?

Explain your answer.

When it comes to grocery When it comes to grocery

retailing, Walmart is more likely to retailing, Walmart is more likely to
win the ‘war’. In the e-commerce win the ‘war’. In the e-commerce
world, Amazon is the big shark, world, Amazon is the big shark,
but in the grocery pool, the but in the grocery pool, the
picture changes. picture changes.
Until 2020, Walmart’s 11,000+ Until 2020, Walmart’s 11,000+
brick-and-mortar stores dwarf brick-and-mortar stores dwarf

Amazon’s physical presence. 90% Amazon’s physical presence. 90%
of Americans live within 10 miles of Americans live within 10 miles
of a Walmart store. Meanwhile, of a Walmart store. Meanwhile,
Amazon operates just 481 Whole Amazon operates just 481 Whole
Foods Market stores and 41 other Foods Market stores and 41 other
US locations. Amazon is US locations. Amazon is

expanding its brick-and-mortar expanding its brick-and-mortar
presence with Amazon Fresh and presence with Amazon Fresh and
Amazon Go stores, but still has a Amazon Go stores, but still has a
ways to go to catch up with ways to go to catch up with
Walmart’s physical footprint. Walmart’s physical footprint.
One problem raised when One problem raised when
Walmart had just expanded in e- Walmart had just expanded in e-

commerce was that it had to commerce was that it had to
compete against Amazon Prime compete against Amazon Prime
Now service, which offers free Now service, which offers free
two-hour delivery to members of two-hour delivery to members of
its loyalty program. its loyalty program.

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