Decline of the physical supermarket as a consumer gateway - Brendan Moroso

Description:

Supermarkets have long held control over access to middle-class consumers in the food and grocery supply chain. However, new technologies and business models have challenged this paradigm, altering power dynamics withing the grocery sector.

Enablers:

The rise of internet shopping culture and a growing use of delivery providers (including those employed by amazon) facilitated a shift to web-based grocery shopping. Additionally, standardization of produce and products decreased the need for consumers to select their own goods in-store.

Inhibitors:

• Poor Connectivity (digital)
• Access to delivery
• Availability of information
• Availability of of low-wage workers.

Paradigms:

Old: Groceries were purchased by consumers on the premise of supermarkets. Supermarkets decided what choices consumers would have. Once purchased, it was the responsibility of the consumer to get their groceries home using their own transportation New: Groceries can be purchased online from various websites and companies. Groceries can be delivered to consumers, removing their responsibility for transportation.

Experts:

https://www.hellofresh.com https://www.amazon.com/fmc/learn-more

Timing:

The first wave of alternative grocery business models began in the early 2000s, however, the Covid-19 pandemic rapidly sped up the shift from in-person grocery shopping in the early 2020s.

Web Resources:

https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ordering-in-the-rapid-evolution-of-food-delivery