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Can Amazon Steal Grocery Market Share From Traditional Sellers?

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The already crowded grocery store segment may soon face another challenge--home delivery by Amazon. Amazon has been delivering fresh foods such as eggs to customers in its home base of Seattle for about five years, but it now plans to expand the service to other markets, starting with Los Angeles and San Francisco, and eventually rolling out in as many as 40 cities, according to Business Insider. The company aims to improve its profit margins on food products by using the same facilities and equipment to deliver its non-perishable products, such as electronics.

So is this a real threat to supermarkets and warehouse clubs? Or a possibility for disaster? Currently, it's unknown whether Amazon's food delivery program in Seattle is profitable. 

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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