The Impact of Amazon+Whole Foods on Omnichannel Grocery Shopping

It’s not just Amazon and Whole Foods who are encouraging shoppers to think omnichannel when it comes to groceries. Both Walmart and Kroger are investing heavily in “click and collect” models, which allow shoppers to place orders online and pick up at the store. But what does this recent Amazon and Whole Foods merger mean for Walmart’s Store Pick-Up service and Kroger’s Clicklist; both of which have big expansion plans and are expanding their organic offerings?

Speaking with a local Kroger employee and examining the situation as shopper marketers, we realized that the implications impact many aspects of the business beyond the tech side. It has to be a true omnichannel shift to fulfill the needs of an omnichannel shoppers.

Some of the key implications we gathered from our conversations include:

  • SPACE & STAFF | More warehouse space, expanded parking lots and more staff to fulfill orders will be needed for pick-up locations to ensure the delivery aspect of the service is flawless for the shopper.
  • RETAILER REPUTATION | With shoppers skipping the store, how will retailers be able to use their employees to stand out from the crowd. For King Soopers, a retailer known for chatting with shoppers and creating a friendly environment, how will they be able to maintain that in light of Clicklist shoppers who want speed and convenience vs. small talk.
  • ORGANIC FOR ALL | Will the removal of the store experience change how shoppers see organic? No longer swayed by the lovely organic store environment and having more visibility to price online, will shoppers continue to accept price variances in organic offerings or will organics become democratized to the point of EDLP?

As the omnichannel grocery race unfolds it will be interesting to see how retailers will adjust to maintain their reputations and how successful they are in adjusting the entire ecosystem to fulfill shoppers needs.

Image Source: King Soopers

Contributed by: Reyna Alishio, Integer Denver