Amazon Fresh and Amazon Spotlight may have a new competitor in Google. Reaching outside it current boundaries Google is expanding in the same-day grocery delivery business with a new test as you can see from the Associated Press photo above.
This new program titled “Google Shopping Express, will initially provide same-day delivery of food and other products bought online by a small group of consumers in San Francisco and suburbs located south of the city.” was reported by the AP and must a concern for legacy grocery retailers.
Google did say that if the pilot program goes well, they plan to expand delivery service to other markets. Like Amazon Google is looking for that last mile solution so they can sell and delivery a mix of products in the future. Legacy grocery store companies have obviously provided a window of opportunity that Amazon and Google hope to exploit.
All food retailers must evaluate how they do business not how they did business. The ready-2-eat and heat-N-eat fresh prepared food niche is the only sector of retail foodservice to post positive numbers the past 6 years.
Amazon Spotlight, Amazon Fresh and Google pose a growing threat to restaurant operators, C-store operators, retail drugstores and grocery stores. The grocery sector having lost 15% share of stomach over the past 10 years clearly is under direct attack and must evolve rapidly or risk going the way of Burger Chef, Tower Records, and A&P.
Steven Johnson is Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive experience as a multi-unit operator, consultant and brand/product positioning. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant