![]() ![]() Amazon is accelerating the expansion of Prime Now for grocery delivery and Target has accelerated the expansion of Shipt to deliver groceries and general merchandise. Instacart will have no choice but to expand its business model to survive. Case in point: How many grocery executives thought Amazon would acquire Whole Foods? What prevents Instacart from changing its business model? Nothing. In fact, the mantra I live by is Crush All Assumptions about business in general. I strongly advise the grocery industry to crush all assumptions that Instacart will look and operate the same way three to five years from now. Are grocery retailers wrong about Instacart? If so, Instacart is operating in a fashion like the famous Trojan Horse in Greek mythology as grocery retailers are enthusiastically inviting in an entity with the potential to become a major competitor. Grocery retailers have embraced Instacart as few grocery executives believe Instacart will ever become a competitor. Kmart wasn’t concerned about Walton as it didn’t view him or Walmart as a threat. Retailers invite Instacart inside their four walls and voluntarily provide them with data whereas Sam Walton had to often use his wits and charm to get the information he wanted. Instacart requires a grocery retailer to provide them with certain data and access so Instacart can set up the grocery retailer within its core systems. ![]() This time the company so deftly gaining access to retailer is Instacart, which recently announced it is expanding into another city. Fast forward to 2018 and once again we are experiencing a repeat of the process utilized by Sam Walton to decimate Kmart.
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