Chapter 5: Digital Disruption: How E-Commerce Is Changing the Grocery Game

The traditional grocery store business model is in a state of disruption, driven by the transition to selling groceries online via e-commerce. While online grocery sales are still minimal, they are expected to grow substantially as more retailers begin to compete in this space on convenience, access, and price. This article explores the primary methods of e-commerce product deployment in the grocery industry as well as the benefits and challenges posed by this new data-driven business model. To maximize its growth potential, the grocery e-commerce model may ultimately need to transition away from the existing store model where consumers gain access to products in traditional brick-and-mortar, high-dispersed environments to a new distribution system wholly reliant on information technology.