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We Are Embracing a Totally Different Retail Industry, Born Out of the COVID-19 Epidemic!

As of April 27th, the number of patients diagnosed with COVID-19 in the United States has already crossed one million marks, and there is still no clear sign of getting better. People naturally resort to the internet to purchase necessities. Online supermarkets like Walmart Grocery, Amazon Fresh, Costco, Instacart, and others have recently become popular clicks in everyone's phones. But, due to the limited resources and urgent needs, these electronic platforms have been criticized over and over again.

The Basic Landscape of The New Retail Industry

According to many analysts, Wal-Mart's current distribution bottleneck is the last kilometer of distribution. The distribution cost remained high, but Wal-Mart choose to constantly invest in human and material resources rather than seeking change to build the fundamental efficient logistics model.

Amazon has been vying with Walmart for the grocery retail business. In a bid to grab more online users, Amazon spent a whopping $13.2 billion in 2017 to acquire Whole Foods, a large US organic supermarket, to set up an online supermarket.

As the retail giants with huge capital began their e-commerce journey, many traditional offline physical supermarkets such as Sprouts are in a disadvantaged position. Instacart found this business opportunity to integrate offline retailers. Founded in 2012, It has inherited more DNA from a modern tech company than a veteran retailer. Many analysts see Instacart as a seemingly offline supermarket partner, but in the long run, it’s a strong potential competitor. Many supermarkets will share data with Instacart, which gives it the edge over the e-retailer competition in the future.

New Retail is Stuck in a Word-of-Mouth Crisis

Amazon has been criticized in the epidemic for not giving out timely safety protection supplies such as masks and disinfectant to employees, and for not putting many protections in place for employees.

Instacart has also been one of the most criticized companies in this epidemic, with distributors risking their lives to deliver much more orders than usual, and Instacart promising to raise revenue for distributors, but in reality, pinning those increases on consumers raising tips for distributors. However, many consumers don't come forward to tip more, so the distribution fees for delivery people aren't growing at a reasonable rate.

The most common criticism, of course, is around the e-commerce supply chain. Delayed distribution, incorrect delivery, and frequent out-of-stocks on the shelves are all things that annoy customers.

The Promising Future of the New Retail Industry

People are getting into the habit of buying ingredients online. In the past, companies generally adopt crazy marketing to offer discounts to pull in many new users, but many users may leave the platform sooner or later. The epidemic has unexpectedly helped these online supermarkets develop the habit of buying fresh food online, and once this habit is developed and strengthened, the benefits to online supermarkets will still be much higher than before the epidemic.

What do you think?

Written by Nisha

Nisha is a bachelor of journalism. She loves life. She is a journalist, but this is not all. She is also a professional website editor. She is good at writing life articles and entertainment articles.