Internet grocery business in Japan: current business models and future trends

The launch of a wave of Internet grocery retailers over the last six years presents a serious challenge to the traditional supermarket business model. The Internet grocery landscape changed radically in July 2001 when the top Internet grocer, Webvan, filed for bankruptcy. With the bankruptcy of Webvan, almost all the major stand‐alone online grocers in the USA have disappeared. Indeed, traditional supermarkets such as Albertsons and Safeway have recently been expanding into the online arena. In Japan, major traditional supermarkets have been seriously working on establishing online services in the metropolitan area with a “brick‐and‐click” model. Examines strategic reasons for today’s Japanese supermarkets to try establishing online grocery businesses. Also addresses critical success factors and current limitations based on socioeconomic conditions, Japanese culture, and expected future trends.