The fight for the $ 800 billion US grocery industry has just begun.

Amazon has shaken up the playing field, traditional grocers have been 【M1】__________

slow to embrace technologies for online ordering, fulfillment, and

delivery. Today online orders make up for just 2% of grocery sales (in 【M2】__________

retail overall, the number is 10%). But e-commerce is quickly growing:

Some analysts estimate what by 2025, 20% of grocery purchases will be 【M3】__________

made online.

And although Amazon/Whole Foods looms large, the e-commerce

giant is far to the decided winner. In the past year Walmart, Kroger, 【M4】__________

Costco, and Target have driven down costs and introduced delivery

capabilities in new regions, cut into Amazon’s market share. 【M5】__________

Meanwhile, new business models are thriving. Six-year-old Instacart,

for example, has secured a $7.6 billion valuation and a loyal follower 【M6】__________

by building a platform for grocery delivery and partnering with more

than 300 retailers.

Instacart’s success undermines what may be the most important 【M7】_________

point about the grocery industry’s current state: Most shoppers today are

not loyal to single store or chain. The nature of customer loyalty is 【M8】__________

changing as shoppers get more comfortably buying groceries online— 【M9】__________

prioritizing convenience, choice, and ease over physical proximity to a

store. As consumers become more sophisticated, retailers need to inspire

lasting loyalty across its customer base. To do it, they should offer 【M10】_______

flexibility, proactively communicate about order status and other

details, and build emotional connections with shoppers.

【M6】