How Many Grocery Stores Will Amazon.com, Inc. (AMZN) Bankrupt?

In theory, Amazon.com, Inc. (NASDAQ:AMZN) could attract customers who would then be more inclined to purchase other, higher-margin goods from the company. I’m not sure I buy into this logic, given that many of the people who would opt to buy their groceries online are probably already among Amazon’s regular customers.

However, everyone needs to eat. Unless one goes out for every meal, grocery shopping is a necessity. By dominating that business, Amazon would ensure that its customers are thinking about it on a regular basis.

Which companies are most exposed?

Some reports have claimed Safeway Inc. (NYSE:SWY) could suffer due to Amazon.com, Inc. (NASDAQ:AMZN)’s expansion. But given that it’s the only major chain currently offering a similar business, it’s probably the least likely to suffer. Safeway’s management must see the potential in online grocery shopping, otherwise they wouldn’t have entered the market.

Companies like Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT) sell a lot of groceries, but they sell plenty of other goods as well.

The Kroger Co. (NYSE:KR) seems to be most exposed, given that it’s wholly reliant on groceries and has made little digital headway.

Whole Foods Market, Inc. (NASDAQ:WFM), too, seems like a potential victim. The store’s customers — the affluent, the members of the millennial generation — are likely to be the ones most attracted to online shopping. A quick search on Amazon’s grocery website reveals dozens of organic foods.

Online grocery shopping: the next big trend?

Shopping for groceries online isn’t going to take the world by storm overnight. Moreover, innate logistical challenges will likely keep the service out of suburban and rural communities for years, perhaps decades.

At the same time, grocery shopping is an area ripe for disruption. Investors in companies like Whole Foods Market, Inc. (NASDAQ:WFM) and The Kroger Co. (NYSE:KR) must keep an eye on how the trend is progressing.

The article How Many Grocery Stores Will Amazon Bankrupt? originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Whole Foods Market (NASDAQ:WFM). The Motley Fool owns shares of Amazon.com and Whole Foods Market. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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