Report: online grocery not that profitable

Online grocery is more popular than ever, but profits are still scarce, according to a new Bloomberg report.

With about 35 million more Americans buying groceries online this year compared with 2018, more retailers are looking to add such a service to their platforms. However, online fulfillment and delivery of fresh food is complex, expensive and can sap a retailer’s profitability.

Despite the challenges, Bentonville, Ark.-based Walmart and Minneapolis-based Target have both unveiled new web grocery services with an eye toward one-upping each other. Walmart is testing unlimited home deliveries for $98 a year in four cities, just a dollar less than Target’s Shipt subsidiary charges for an annual subscription to its same-day service.

To read the Bloomberg article, click here.