State of Digital Grocery: Growth at the Cost of Profitability

A recent study conducted by research firm Incisiv found that 86% of large, national grocers reported that “low profitability of our online business” was their #1 problem. Based on the responses of 200+ U.S. based grocery retail executives, the report assesses the performance of online business for grocery retailers and the challenges they have faced.

The study’s key findings include:

  1. Top e-grocery challenges of low profitability, managing third-party relationships, operational efficiencies, and inadequate technology
  2. Risks of outsourcing e-commerce to third-party platforms such as Instacart
  3. Strategies to improve margins and increase operational efficiencies