In this paper, we analyze the history, current challenges and exciting future facing the grocery business. We share our view on why all retail is not created equal and the key characteristics of the grocery industry.

Brick-and-mortar retail is not in a fight with e-commerce; rather, these two mediums represent two complementary pieces of the modern consumer delivery system. The business of selling food in America has undergone several transformational cycles over the past two centuries. Grocers first evolved from local marketplaces and general stores to chain stores, then to supermarkets, and finally to discount supercenters. For a grocer to find success in today’s competitive landscape, it must once again radically transform by offering a rewarding in-store experience, convenient pick-up locations, and cost-effective home delivery.