Q3 2017 Oakland Retail Market Research ReportRetail Transforming in Oakland and Berkeley

E-commerce and changes in consumer spending behavior continue to shake up traditional brick-and-mortar retail. Amazon’s acquisition of Whole Foods for $13.7 billion in August sent the latest shockwaves, and will likely affect not just retail grocers that will have to compete with lower Whole Foods prices, but also non-grocery retailers that could lose consumers who increasingly migrate to Amazon, grocery delivery services that will have to compete with the growing convenience of grocery shopping on Amazon, and meal-kit companies that could be seriously challenged by Amazon’s foray into their sector. Even pop-in restaurants that rely on foot traffic and consumers shopping offline to “pop into” their establishments might be negatively affected. Walmart, which currently has the biggest market share in the US grocery business, has responded by aggressively expanding its in-store and online grocery business by adding more organic produce, testing grocery-to-fridge delivery in Silicon Valley, and expanding curbside grocery pickup at hundreds of stores. Other sectors like fashion, bookstores, and electronics are struggling to find an answer to e-commerce..