I see grocery (perishable items) as something that the online retailers have not yet cracked. I have a great grocery store right down the road and like to pick out my own meats, fruits, and veggies. I do not trust that someone from Amazon will do the same (or even the online section of our local grocery). Since I am there, it is easy to get other items at the same time that have a bit more shelf life (cereal, sauces, etc.)
Retail consumer goods on the other hand ... Amazon and Internet retailers make life really easy to purchase shoes, socks, electronics, etc. from the comfort of my couch.
Your experience and opinion is exactly why groceries have been the slowest category to gain any traction online. However, that time is over. By 2025 and probably sooner, 20% - 25% of groceries will be purchased online.
Both Walmart and Amazon have publicly stated that they want to own 50% of the online grocery market. Both of them basically have unlimited capital to achieve that objective. What that means is that there will be further consolidation in the grocery space and those companies that don't offer the service, either themselves or through a third party provider (Instacart, Shipt, etc) will ultimately be acquired or just go out of business...as they see 20% of their revenue disappear.
Experiential retail will absolutely help (think sushi bars or coffee shops in the middle of the store) but it will only go so far as those people who are either time pressed, tech savvy or in need of convenience shift to online.
It's not a matter of "if" it's a matter of how quickly. Based on our conversations with pretty much every retailer in the grocery space Walmart inc and Amazon will absolutely be the winners in the space. There is definitely room for others...but not much. We think 3-4 others entities that will also see hyper growth and gobble up share.
Lidl and the expansion of Aldi will also wreak havoc on the industry...
We are in for an interesting and challenging ride.