Online Grocery Business Does Not Have Long-Term Viability, Market Analysts Say

Online grocery as a business does not seem to have long-term viability, according to HSBC retail analyst David McCarthy. According to a note by McCarthy, big investments by grocery chains, such as Kroger, Whole Foods, and Walmart, in online grocery and home deliveries are a waste of their money. McCarthy said the fact that the online grocery market keeps growing at only half the growth rate of discount retailers, such as Aldi and Lidl, supports his assertion. Other market analysts are also questioning the viability of online grocery, as highlighted by a BMO Capital Markets report showing the vast majority of consumers do not like to shop for groceries online.