The e-groceries business – currently a $200 million market in the GCC and Egypt – accounts for just 2.4% of the overall e-commerce space (Wamda 2019), but it is soon set to become one of the highest-growth industries over the coming years.
The main value proposition of a grocery store has been its proximity to the clients. Today, the groceries sector has become fiercely competitive, with new market entrants changing how people buy groceries by vertically integrating delivery within new grocery business models. As a grocery store, proximity to the customer will play much less of a role in whether they shop. Although some consumers may not be entirely comfortable buying produce online yet, that will come with reliable and fast customer service.