Amazon is now expanding offline and rapidly changing the grocery shopping experience presenting new challenges and areas of opportunity for today’s grocers. In 2017 alone, Amazon sold $2 billion in groceries online, which is up 59% year-over-year. It’s estimated that Amazon has 18% of the U.S. online grocery market on lockdown, which is double that of Walmart, Amazon's closest competitor.
For a while it seemed that the most likely candidate to compete with Amazon’s innovations was Walmart with their global brick-and-mortar presence and warehouse space. That is until recently, when Kroger and Microsoft teamed up to take on “Amazon's cashierless stores with their own futuristic grocery store pilot.”
Microsoft CEO Satya Nadella stated that the partnership promises to “redefine the shopping experience for millions of customers at both Kroger and other retailers around the world, setting a new standard for innovation in the industry.”