Kroger, Instacart and Target among biggest losers as Amazon makes long awaited major move in grocery deliveries

Amazon reports that customers in more than 1,000 US cities and towns can now order fresh groceries with their same-day delivery orders, with plans to expand to over 2,300 across the country by year end.

People will have the option to order the likes of produce, dairy, meat, seafood, baked goods, and frozen foods, alongside the likes of everyday household essentials, electronics, fashion, and home and garden.

“We’re continuously innovating to make grocery shopping simpler, faster, and more affordable for our customers, especially Prime members,” says Doug Herrington, CEO at Worldwide Amazon Stores.

“By introducing fresh groceries into our same-day delivery service, we’re creating a quick and easy experience for customers. They can order milk alongside electronics; oranges, apples, and potatoes with a mystery novel; and frozen pizza at the same time as tools for their next home improvement project - and check out with one cart and have everything delivered to their doorstep within hours.”

Brittain Ladd, a supply chain consultant and former Amazon executive, says: “Amazon is leveraging its strengths (amazon.com and its advanced logistics network) to scale its grocery business without having to compete head-to-head against Walmart, Kroger and other grocery retailers by building stores. The grocery industry is refighting WW2. Amazon has launched a guerilla warfare campaign.”

According to Ladd, the biggest losers here are:

1. Kroger. “They have failed at every level to make Kroger a better company. Their CEOs, especially Rodney McMullen, woefully underestimated Amazon. In addition, McMullen and the board foolishly tried to acquire Albertsons. What Kroger should have done was hire Greg Foran or Tony Hoggett to be the CEO, and expand the use of Ocado. Kroger should have partnered with Palantir Technologies instead of relying on legacy systems.”

2. Albertsons. “They're locked in a lawsuit with Kroger over a merger they should have never agreed to. Albertsons only hope is merge with Ahold-Delhaize, and hire a CEO that is actually qualified for the job.”

3. Instacart. “I'm a former advisor to Instacart. On several occasions, I warned the company that Amazon would expand nationwide using amazon.com and their logistics network. I stated to the executive team that they should become an online grocery retailer selling groceries direct to their own customers. Fidji Simo, however, thought Instacart's future was in the Caper Cart and the firm’s antiquated platform. Big mistake. Instacart is increasingly becoming irrelevant.”

4. DoorDash and Uber. “Either one should have acquired Instacart in 2021. Both will struggle to gain market share in groceries.”

5. Target. “I warned Target to hire Suzy Monford or Tony Hoggett two years ago. In 2018, I warned Target to partner with Lidl US to open their stores inside Target. Target must now consider divesting its grocery business to Whole Foods Market, Lidl, or Publix Super Markets if it won't hire Suzy or Tony. Target’s next CEO must solve its grocery business.”

Ladd concluded: “Amazon will first maximise the potential of amazon.com and its logistics network to grow the grocery business before it considers opening more stores.”

2025 RTIH INNOVATION AWARDS

Grocery delivery will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.