Close
  • Latest News
  • Artificial Intelligence
  • 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
  • Artificial Intelligence
  • 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.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      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.

      ×