Forget Kroger, another national grocery chain closing stores

Core Insights - Supermarkets operate on very thin profit margins, with the average net profit for food retailers projected at 1.7% in 2024 [2] - Traditional supermarkets face competition from online-only retailers, which can maintain lower costs by utilizing cheaper warehouse spaces [3] - Online grocery sales currently account for only 7.1% of total grocery item sales, but online shoppers tend to spend more per transaction compared to in-store shoppers [4] Group 1: Supermarket Operations - Supermarkets stock an average of 31,795 items in stores that average over 42,000 square feet [3] - In-store shoppers spend an average of $45.70 per transaction, while online shoppers spend $108 per transaction [5] Group 2: Amazon's Grocery Strategy - Amazon Fresh has seen more growth in its online delivery service than in its physical stores [7] - Amazon's CEO noted that the company is one of the largest grocers in the U.S., with over $100 billion in gross sales last year, excluding Whole Foods [8] - Amazon serves over 150 million customers and offers nearly three million grocery items for online delivery, pick-up, or in-store shopping [11]