When Groceries Go Digital, Perishables Find Their Own Path

d. The online perishable grocery category is properly excluded from the online superstore market

160. Online purchases of perishable grocery products are not part of the online superstore market. Perishable groceries are foods that cannot be safely stored at room temperature, including fresh fruits and vegetables, raw meat, and frozen items. Though some online superstores may also offer online purchases of perishable grocery products, this distinct business line is not part of the relevant market and is excluded from the market share numbers in Part V.A.2, below.

161. Consumers’ experiences when shopping online for perishable groceries differ from their experiences purchasing other retail goods. For example, consumers shopping for online perishable grocery products typically must select a specific time for the perishable grocery products to be delivered, which often also requires the customer to be present at the time of delivery to be able to promptly store those items. Both Walmart.com’s and Amazon’s online perishable grocery businesses require shoppers to choose a delivery window or “time slot.” Neither Walmart.com nor Amazon typically require shoppers to choose time slots when purchasing other products online.

162. The process for packaging and delivering perishable groceries to shoppers who ordered them online also differs from non-perishable grocery orders. Perishable groceries require special handling, often including refrigeration or freezing, as well as quick and careful delivery to avoid damage or rot. As such, perishable grocery delivery requires specialized storage facilities with refrigeration systems that serve a smaller geographic footprint.

163. Competition for online perishable grocery sales is also different from competition between online superstores. Competition for online perishable grocery sales is generally more localized, whereas online superstore competition is nationwide. This difference is because grocery quality and shelf life are seasonal and regional. For example, perishable fruit may be available only during certain times and in certain regions. As a result, Amazon (redacted)