U.S. grocers file bankruptcy as Amazon, e-commerce tightens grip
Bankruptcy filing among regional grocery chains is slowly becoming a trend as competition from larger U.S. grocers, European-based discounters, and e-commerce businesses tightens.
Jennifer Bartashus, an analyst at Bloomberg Intelligence, said that the sector’s environment has become “intensely competitive” and will not ease up anytime soon.
Bartashus said that weaker players are now collapsing one by one, while established grocery chains are having a hard time catching up with the trend.
Just last week, Southeastern Grocers, owner of the Winn-Dixie and Bi-Lo supermarket chains, filed for bankruptcy as a result of continued pressure from online giants like Amazon and China’s Alibaba.
Bigger grocers like Kroger Co. and Walmart Inc., however, are still managing to keep profits afloat as they invest heavily on technology and expansion of delivery services to retake market shares from online competitors.