Digital has upended the way grocers and manufacturers connect with consumers, creating a range of new partnership opportunities and threats. Leaders like Walmart, Target and Amazon have made strategic acquisitions and invested heavily in their own grocery fulfillment programs, but 56% of Index grocers rely on partnerships with Instacart for delivery. While Instacart offers a quick entry to same-day delivery, it poses a threat to consumer loyalty and reduces grocers’ control. And while most grocers have been slow to adopt monetization tactics and tools that enable manufacturers to win preferred placement on grocer sites, Instacart tightens its relationships with manufacturers, creating new challenges for traditional grocer.
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