Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    Online Grocery Business Still Ripe

    By
    eWEEK EDITORS
    -
    July 16, 2001
    Share
    Facebook
    Twitter
    Linkedin

      Pure-play internet grocer Webvan Group might be history, but traditional grocery store chains continue to expand their online grocery efforts.

      Traditional chains have a leg up on Webvan, which spent millions of dollars to create its own network of national distribution centers. The Foster City, Calif., company shut its Web site and fired about 2,000 workers last week. Webvan suffered from low product margins, high delivery costs and an inability to retain customers.

      Meanwhile, chains such as Safeway and Albertsons already have infrastructure in place to handle grocery deliveries to the home. Both chains are experimenting with online operations that work on a per-store basis.

      Safeway, which owns half of the GroceryWorks online service, said last month it was closing its Texas distribution centers for online sales and will deliver groceries out of individual stores. British supermarket operator Tesco invested $22 million in GroceryWorks to aid in overhauling the online operations. GroceryWorks service is available only through Safeway-owned Randalls and Tom Thumb stores in Texas, but the company said it plans to expand into other regions.

      Albertsons closed its Fort Worth, Texas, warehouse in May. The company offers online shopping through nearly 40 stores in the Seattle region, and is evaluating expansion plans.

      Publix Super Markets in the Southeast and Supervalu, a supermarket retailer and distributor in the Midwest and East, plan to launch services this year. The Kroger Co. offers online shopping through a Colorado chain .

      “The online grocery industry will survive the failure of Webvan, but growth will come quite a bit slower because of it,” said Ken Cassar, a senior analyst at Jupiter Media Metrix.

      Jupiter estimates online grocery store revenue will be about $800 million in 2001, increasing to $1.3 billion in 2002. Webvan accounted for 46 percent of the industrys revenue.

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×