Category Archives: On-line food shopping

On-line food shopping

Despite Mid-west Closing of Peapod, Ahold Expects Robust e-Commerce Growth

Ahold Delhaize, whose supermarket brands include Stop & Shop, Giant Food, Giant/Martin’s, Food Lion and Hannaford, recently announced that they will be closing the Midwest division of its Peapod online grocery arm.

However, the company also noted that the Peapod Midwest closing isn’t expected to have a significant impact on the previously announced goal to drive 30% U.S. e-commerce growth in 2020.

According to a SupermarketNews article, Ahold plans to focus on markets in which they already enjoy a strong presence. Going forward, Peapod Digital Labs will support online grocery delivery and pickup service for all Ahold Delhaize USA’s supermarket brands. The article also noted that Ahold “aims to establish those brands as the leading omni-channel grocery retailers in their market areas.”

“To continue our strong track record of sales growth and market share gains, we are accelerating our growth and expanding the leadership positions of our businesses in our East Coast markets,” Ahold Delhaize USA CEO Kevin Holt said. “This move will enable us to fully focus on markets where we have strong store density, leading market share and a longstanding heritage of customer loyalty.”

On-line food shopping, Process improvement, Shopping Experience

Tech Driving Customer Experience at SpartanNash

SpartanNash is leveraging GPS location technology to improve curbside service in its Fast Lane online grocery pickup program. According to a recent SupermarketNews article, a number of the chain’s locations are now using Radius Networks’ location-based FlyBuy Pickup service with ShopperKit’s in-store grocery fulfillment software to bring out Fast Lane orders to customers as soon as they arrive at the store.

Referenced as a “click-and-collect platform,” the process begins when a customer places a Fast Lane curbside order. The order is fulfilled and the customer is notified when their groceries are ready for pickup. The customer can then share their location via mobile apps or a web browser to let their Fast Lane personal shopper know they’re heading to the store. That allows customers’ orders to be prepared and delivered to their vehicles the moment they pull into the pickup area.

“This new technology will completely change our customers’ experience with Fast Lane,” said Brian Holt, vice president of marketing for SpartanNash.

“Fast Lane already provides exceptional customer service, with overall satisfaction scores 30 points higher than the national average, as well as some of the nation’s leading fulfillment rates. And our new GPS location technology will only improve the ease and speed of the Fast Lane experience.”

This is another good example of how today’s supermarkets are leveraging technology and continuous process improvement to drive customer service and the shopping experience.

Grocery shopping trends, On-line food shopping

Pros & Cons of a 2020 Grocery Trend: Delivery

A recent article published by datecheckpro.com cited a Coresignt study indicating that “36.8% of internet-using adults polled bought groceries online in the previous 12 months, up from 23.1% in their 2018 study. That equates to approximately 93 million online grocery purchases using U.S. Census data.”

Interestingly, according to SupermaketNews, the majority of these purchases came from Walmart and Target, followed by Kroger. Walmart and Kroger have more than doubled their online grocery shopper numbers over the past 12 months, their report said. This alone translates to adding about 20 million and 6 million online customers, respectively. In addition, and as we all know, Amazon has become active in selling groceries. So, all things considered, it’s a fair assumption that online grocery shopping and home delivery are here to stay.

It’s also fair to say that, before long, consumers will demand online shopping and delivery from smaller independent stores as well.

For retailers, there are pros and cons to offering this service.

According to the article, top reasons in favor of offering online ordering and home delivery are:

  • It satisfies consumer demand for convenience.
  • It enables a retailer to get on the bandwagon of what is clearly a trending service in the industry.
  • Since the transactions are all digital, retailers get more insight into customer shopping habits and preferences – good data!

On the negative side:

  • Delivery is not easily accessible for all grocers, especially smaller stores in more rural America. Bigger chains like Walmart, Target, and Kroger have success with their grocery delivery services because they have the financial, operational and people resources to handle the complicated logistics.
  • The first “con” leads to the fact that smaller grocers will likely need to outsource the delivery portion of the equation, thus losing a good deal of the control associated with that piece.
  • Costly initial investment

Read the full article…

Grocery shopping trends, On-line food shopping

Supermarket “Automation”

Related to recent posts about the trend toward online grocery shopping is a recent SupermarketNews article featuring input from Brick Meets Click co-founder Bill Bishop.

The piece is part of a twice-monthly series in which industry executives, experts and other grocery players share their insights about the news, trends and issues that matter most to retailers and their business partners.

In this installment, which also includes a Podcast, Bishop lists five ways that automation will impact grocery retail, which include:

  • Supermarkets will become more productive and, in turn, more competitive
  • A more educated and/or engaged and productive workforce will be attracted to food retailing
  • Automated order selection systems will replace or reduce self-service retailing
  • Technical breakthroughs will drive significantly lower retail costs
  • Customers will see a more personalized shopping experience.

“The world around us is changing very rapidly. Consumers are using digital aggressively, and it’s changing their expectations. Of course, that’s particularly strong among younger shoppers. Beyond that, competition is putting significant pressure on margins today. This automation technology is a way to maintain profitability,” Bishop said.

“Now we see automation stepping in with the opportunity to replace large sections of the supermarket,” he later explained. “That automation is able to operate in a much smaller footprint, and there’s significantly higher productivity.”

Read the full article/listen to Podcast…

On-line food shopping

Demand for Home Delivery of Groceries Continues to Spread

As you may know, “If you build it, they will come” is a phrase popularized in a sports movie. But the concept might also apply to the grocery business as the following developments indicate.

According to a recent SupermarketNews article, Uber Technologies Inc. announced plans to acquire majority ownership of Cornershop, a leading online grocery provider in Mexico and Canada. The acquisition is planned for early 2020, subject to regulatory approval.

“Whether it’s getting a ride, ordering food from your favorite restaurant, or soon, getting groceries delivered, we want Uber to be the operating system for your everyday life,” said Dara Khosrowshahi, CEO, Uber. “We’re excited to partner with the team at Cornershop to scale their vision, and look forward to working with them to bring grocery delivery to millions of consumers on the Uber platform.”

The Cornershop app or website enables customers to order groceries for delivery. Cornershop employees then go to participating grocery stores to pick and pack their orders. Customers are called at the end of each shop, and they can approve any replacements or request another item to be added to the cart.

In another report, Giant Food of Landover, Md., a chain of 163 supermarkets in Virginia, Maryland, Delaware, and Washington, D.C. announced the launch of an enhanced service they call “Giant Delivers.”

This refreshed version of a previous delivery program is part of Giant Food’s “The Little Things Are Giant” platform, “which is all about helping customers save time so they can get back to what matters most.”

The article went on to say that next-day home delivery from Giant Delivers is now available to over 6 million shoppers living in over 300 ZIP codes across the Washington, D.C., metro area. Same-day delivery is available within the downtown D.C. area, “offering a new way to fit shoppers’ busy schedules, especially those needing a last-minute ingredient or dinner solution.”

Giant’s grocery delivery service is available without commitment or subscription and offers customers the option to sign up anytime for unlimited deliveries for a one-time annual fee of $99, making weekly grocery delivery orders more convenient and affordable than ever, the article said.

Clearly the call for online grocery shopping options coupled with the convenience of quick home delivery continues to increase… and more supermarkets as well as related businesses are stepping-up to meet the demand.

Customer Service, On-line food shopping

New Level of Customer Service Goes “Beyond” Home Delivery of Groceries

Walmart is expanding the online grocery shopping experience by going “beyond” home delivery. According to a recent SupermarketNews article, certain Walmart stores are delivering groceries not just to more homes, but also inside them.

This new service will be launching in the fall when associates will deliver groceries right to a customer’s refrigerator, or to other designated areas inside shoppers’ homes, such as garages or pantries. Various methods are incorporated into the process to ensure security and to allow customers to actually view the delivery from remote locations.

“Online grocery remains a meaningful contributor to e-commerce growth,” Walmart’s Chief Financial Officer Brett Biggs is quoted to say in the article. “Customers continue to really appreciate our grocery pickup and delivery offerings as we scale them across the U.S., …they want product faster than ever before, and Walmart is the best-positioned in the industry to deliver grocery same-day.”

Grocery shopping trends, On-line food shopping

E-Commerce Challenges for Supermarkets

A recent Wall Street Journal article reported that E-commerce is transforming the grocery business, “bringing-about the need to overhaul operations and invest heavily in technology and talent to keep customers from straying to Amazon.com Inc. ”

“Not since Walmart Inc. first pushed into groceries in the late 1980s have traditional chains faced so many challenges,” the article states.

As an example, Kroger, a long-term, consistently successful chain, stayed focused on store sales long after competitors were investing in online-ordering technology and delivery services. But, according to the article, company leadership has recognized they are behind and have crafted a plan for more rapid transition to keep up with consumer preferences.

The article goes on to note that few American retailers have managed the online transition smoothly, citing early struggles experienced by Target and Walmart before improving their e-commerce operations, and the demise of Sears Holdings Corporation and Toys “R” Us in 2018.

This perspective is consistent with that of our previous post, noting that, while still in growth mode, the on-line grocery shopping experience requires improvement. It will be interesting to see how Kroger and other traditional chains address the emerging demand for online shopping while still satisfying the more traditional demand for low prices as well as a “unique” in-store shopping experience.

On-line food shopping

Online Grocery Shopping Growing But Needs Improvement

The latest research from Valassis was referenced in a recent SupermarketNews article, noting two interesting discoveries about the online grocery shopping experience.

  1. 68% of online grocery shoppers say that using coupons and discounts to save money is the most important factor when shopping
  2. The online grocery shopping experience still has room for improvement

According to the study, 63% of consumers still make all or most of their food purchases in-store. But online shopping has increased year over year by 44% for food; 40% for health and beauty products; and 38% for household items.

Among the greatest opportunities for improvement:

  • 64% of online shoppers miss the sensory experience of touching and smelling produce
  • 62% find it frustrating when they can’t use coupons or discounts
  • 62% are uncomfortable having someone else pick out their produce or other perishable items

Read the full article…

On-line food shopping

More Groceries from Amazon in 2019?

According to a recent SupermarketNews article, it will be easier to order food, groceries and medications from Amazon.com as the new year unfolds.

The prediction is based on a report from e-commerce specialist Edge.

“2019 could be the start of when grocery finally hits for Amazon,” Edge said in its analysis. “The e-tail giant’s grocery sales swelled 45% in 2018, yet that was less than the nearly 60% growth in 2016-2017. Amazon’s top grocery categories by sales in 2018 were cold beverages ($600 million, +35% year over year), coffee ($600 million, +40%), snacks ($300 million, +50%) and breakfast foods ($250 million, +15%). “

While the article went on to say that Amazon in still a long-way off from where they’d like to be in the food and grocery sector, their expansion will involve the addition of more Whole Foods and Amazon Go stores.

Read the full article…

Customer service and loyalty, Grocery shopping trends, On-line food shopping, Supermarket competition

Walmart Setting the Pace for Online Grocery?

Our previous post indicated that Amazon was the clear leader in online grocery shopping. However, a recent SupermarketNews article said that “Walmart’s heavy investment in e-commerce is paying off, and the retail giant could top Amazon in online grocery market share by the end of this year.”

The data was based on a Deutsche Bank Securities report, which said Walmart  had been shifting focus and growth strategies in the direction of e-commerce, and that the chain has plans to bring online grocery delivery to 100 metropolitan areas — covering 40% of U.S. households — by the end of 2018 through its own services and third-party providers.

Read the full article…