CBS News tackles the omnichannel retailer's dilemma

The proliferation of online grocery delivery is a sign of the “Sheep Effect,” according to a retail analyst interviewed on CBS’s Sunday Morning, which aired a segment on the evolution of omnichannel retail.

TABS Analytics retail analyst Kurt Jetta says online grocery shopping accounts for just 1.5% of the $800 billion grocery market. Yet consumers are increasingly expecting to have the option of having their shampoo or cookies delivered to their door, even though most of them still prefer to shop brick-and-mortar.

CBS News asked Jetta whether retailers are essentially solving a problem that doesn’t exist.

“I would say they are,” Jetta told CBS News. “And they’re also shooting themselves in the foot. So they’re trying to invest in something [where] they make less money, and undermines a business that is successful and people are generally happy with.”