The short answer is no. Despite the fact that e-commerce sales grew four times more than brick-and-mortar sales in the past year, grocers have been sluggish adopting digital business models. In L2’s Digital IQ Index: Big Box 2016, the grocery category had the lowest average ranking. But now that Amazon has acquired Whole Foods and is cutting prices and cross-selling Amazon Echos in brick-and-mortar locations, it’s time for grocers to upgrade their digital assets.


L2’s Grocery Search and Discovery report assesses the visibility and real estate of players in the grocery sector against regional grocery terms such as ”grocery delivery boston.” The report finds that no legacy retailers other than Walmart own a significant share of results in any region. In other words, most national chains with omnichannel programs like Albertsons, Costco, Target, and Kroger are essentially invisible.


Who are the standout players in search against these terms? Pure plays focused on delivery services. Instacart, FreshDirect, and Peapod fare well in visibility and real estate. Instacart alone owns almost one of every four ads served against regional grocery terms, showing that the first-mover advantage has yielded benefits for these players. As Amazon closes in on the grocery business by slashing prices and streamlining delivery chains, grocers—both national and regional—must adapt to the fast pace of digital investment. 

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