As Amazon expands same-day delivery for perishables, traditional grocers accelerate innovation to keep up with rising online grocery demand.
Columbus, Ohio, 19 November 2025 – Amazon’s rapid expansion into delivering fresh groceries, including popular items like salmon and other seafood, is putting new pressure on traditional retailers. But many established chains are already strengthening their e-commerce strategies to compete in the fast-growing online grocery market.
In August, Amazon announced that customers in more than 1,000 U.S. cities could order fresh groceries through Same-Day Delivery. By the end of the year, the service will reach over 2,300 cities. Amazon says this is one of its biggest grocery expansions, adding thousands of perishable items to a delivery network designed for speed and efficiency.
Fresh seafood, including Chilean sea bass from Whole Foods Market and Atlantic salmon portions from Mowi, is now part of Amazon’s lineup. Early tests show that shoppers who purchase perishables for the first time tend to return more often, shopping nearly twice as frequently as those who stick to non-perishable orders.
Industry analysts say Amazon is using its powerful logistics network to gain ground quickly. David Bishop, partner at Brick Meets Click, notes that Amazon can grow faster by upgrading its existing delivery operations rather than building more physical stores. His research also found that Amazon outperforms Walmart Express in maintaining cold-chain quality, using insulated bags and frozen water bottles in warm regions to keep food fresh during delivery.
Amazon says its temperature-controlled network and six-point quality checks ensure customers receive high-quality perishables. The strategy appears to be resonating most with shoppers aged 30 to 40, especially young families who value convenience and time savings. This age group drives more than one-third of all online grocery sales in the U.S.
Online grocery demand across the country is rising sharply. U.S. grocery e-commerce sales reached a record $12.5 billion in September 2025, a 31 percent increase over the previous year. Monthly active users, order frequency, and average order value all jumped, helping online grocery spending reach its highest share since the early pandemic. Nearly 19 percent of weekly grocery spending went online in September, one of the highest rates ever recorded.
Amazon’s new private label brand, Amazon Grocery, is expected to add even more momentum. The brand merges Amazon Fresh and Happy Belly items into a single label with more than 1,000 products, from olive oil and milk to seafood, meat, and fresh produce. Most items are priced under $5, appealing to today’s price-conscious shoppers. Amazon says customers already bought 15 percent more private-label products in 2024 compared to the year before.
Despite Amazon’s aggressive growth, analysts say the retailer still faces challenges. Walmart can buy groceries in higher volumes and often offers lower prices, while regional chains may outperform Amazon on value. Some shoppers also report less emotional connection to Amazon Fresh stores and concerns about product quality.
Meanwhile, traditional grocers are not standing still. Walmart remains the leader in grocery pickup and delivery, supported by strong usage from Walmart+ members. Cross-shopping between Walmart and other e-commerce platforms continues to grow, and Walmart’s order frequency and average order value are rising.
Kroger, one of the largest U.S. supermarket chains, saw a 16 percent jump in e-commerce sales during the second quarter of 2025. The retailer has also expanded its partnership with DoorDash to offer its full grocery assortment, including fresh seafood and exclusive private labels, to more customers. Kroger leaders say improving e-commerce profitability remains a top priority.
Giant Eagle is also growing its digital presence. As part of its new business strategy, focused on improving value and shopping experience, the company is expanding grocery delivery from 107 to 140 stores. About 100 stores now offer curbside pickup. The retailer is also enhancing its mobile app with item locators, recipe builders, meal bundles, and AI-powered planning tools. These additions help customers shop faster and discover new ways to prepare fresh foods, including seafood.
Giant Eagle has also teamed up with third-party platforms such as Instacart, DoorDash, and Uber Eats to reach more shoppers. The company says demand for grocery delivery and pickup continues to rise as customers prioritize convenience in their daily routines.
As Amazon continues to push deeper into the perishables market, competitors like Walmart, Kroger, and Giant Eagle are investing in digital tools, stronger delivery networks, and improved customer experiences. With online grocery sales breaking new records, the battle for fresh food e-commerce is only getting more intense.
