in store

Starbucks is investing hundreds of millions of dollars in increased staffing in cafes, additional barista training and ceramic dinnerware for in-store orders to improve the experience for customers.

Rogers says 75% of the market is still in baskets $75 and above, but more people may be making small purchases online that they previously would have made in-store.

“It’s possible that new entrants and new use cases are driving incremental small baskets online,” Rogers says, adding that Amazon’s grocery delivery expansion is drawing customers that previously shopped in-store.

Instacart itself is not yet seeing a significant impact, but third-party data show the largest source of Amazon grocery customers were previously in-store customers, presenting competitive risks for retailers, Rogers says.

That’s helping Instacart sell retailers on some of its technology offerings as well as convince them to offer the same price on Instacart that they do in-store, Rogers says.