Coronavirus Keeps Online Grocery Demand High: 4 Stocks To Buy

The COVID-19 outbreak has brought about a major shift in consumers’ buying behavior and spending pattern. Items such as toilet paper, disinfectants, masks, gloves, packaged water, medicines and related food staples have been topping the shopping list for a while now, as people still prefer purchasing essentials and other household products over fashion and leisure items. Well this change in consumer behavior is here to stay, as working and dining at home have become the new normal.

In keeping with this, product innovation, prudent pricing and digitization are the need of the hour. It comes as no surprise that companies have been stepping up omni-channel capabilities and adopting ways to enhance delivery and payment systems, in particular, to expand in the booming online grocery space. To this end, companies’ same-day and last-mile delivery services, and buy online and pick-up in store facilities bode well. In fact, companies’ initiatives to expand delivery options and contactless payment solutions have been a boon amid the pandemic, helping them cater to soaring demand arising from stay at-home trends and social distancing.

Per a media report, the U.S. online grocery market is anticipated to see double-digit CAGR in 2020. The report also highlights that the U.S. online grocery market is expected to reach a worth of $152.3 billion by the end of 2026. Evidently, Amazon (AMZN) and Walmart (WMT) have been making inroads into the burgeoning online grocery space.

Impressively, Amazon’s online grocery sales tripled year over year during the second quarter of 2020. The owner of Whole Foods also informed that it has expanded the grocery delivery capacity by more than 160% and tripled grocery pickup locations during the quarter. Talking about Walmart, the company launched Express Delivery, a service which delivers orders to customers’ doorstep in less than two hours. Walmart’s Pickup program enables customers to place orders online and then pick them up at a store. The company offers Delivery Unlimited membership option at 1,400 U.S. stores. Moreover, Walmart unveiled Walmart+ membership program, offering unlimited free delivery, Scan & Go options and discounts.

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