56% of US retailers say they face significant competition from e-commerce players, according to a new report from APT, with research and analysis from The Economist Intelligence Unit (EIU). Respondents say quality, pricing, product selection, and delivery speed pose the greatest competitive risk from online-only retailers.
In particular, 31% of US survey respondents cite delivery speed as the most threatening attribute of e-commerce retail. For example, today, delivery services have become table stakes for many brick-and-mortar grocers—even big box retailer Costco is offering grocery delivery, working through Instacart and offering a same-day delivery option for orders with fresh foods. Traditional grocers now face competition on price from discount and online grocers, and are also taking a hit on convenience, with the rise of online grocery ordering and delivery services.