Why retailers’ first-generation e-commerce initiatives are no longer enough.

Primed by studies projecting 20% of industry sales moving online within the next few years and triggered by Amazon’s aggressive moves to grow its online grocery business—especially its acquisition of Whole Foods—supermarket retailers have rushed into e-commerce. Nearly all retailers have rolled out vertically integrated online shopping solutions that provide a digital storefront, order management, and order-picking and -fulfillment capabilities. But online shopping solutions have become commoditized, offering little meaningful difference in the shopping experience or fulfillment operations.

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