Tag Archives: food shopping trends

DoorDash Now Offering On-demand Grocery Delivery

According to a recent article published by Restaurant News, “last-mile” food delivery provider DoorDash is now offering on-demand grocery delivery arena, led by the launch of its new DashPass service.

DashPass enables customers to place orders with participating grocery retailers at DoorDash.com or via the DoorDash mobile app and have their groceries delivered directly to their homes by DoorDash.

Defined as the movement of goods from a transportation hub to the final delivery destination, the focus of “last mile delivery” is to deliver items to the end user as fast as possible.

DashPass delivery service is provided via a $9.99 monthly subscription, for which members receive unlimited free deliveries and reduced service fees for orders of at least $12. Customers also can order groceries via DoorDash on a per-order basis for a $3.99 standard delivery fee (depending on the service area), with no minimum order amount.

In a separate article published by SupermarketNews, it was reported that DoorDash, which recently became publicly-traded, built its reputation as the country’s top food delivery provider by strategically going after suburban markets.

As consumers continue to exhibit an increasing demand for convenience as well as quality and choice, retailers and their strategic partners continue to respond with innovative solutions such as this.

Digitized Food Shopping?

89% of U.S. grocery shoppers now use a smartphone at the store says research from Acosta.

The data was published in a recent SupermarketNews article, which stated the current figures marked an increase when compared to the 67% who said they used smartphones while shopping in 2015.

“Mobile-assisted grocery shopping is here to stay and offers a great opportunity for brands and retailers to truly meet the needs of today’s shoppers,” said Colin Stewart, executive vice president of business intelligence at Acosta. “By delivering an end-to-end approach from mobile recipe/meal planning and list making to e-commerce and an in-store experience that is enhanced by mobile, they can not only attract more customers but also engage with them in new and meaningful ways, during the pandemic and beyond.”

Some additional data that might be of interest includes:

  • 58% of consumers polled report being comfortable using digital and online tools to help with food shopping, compared with 42% in 2017 and 35% in 2015
  • 70% reported using a grocery retailer’s app while shopping
  • 34% of shoppers said they view their grocery store circular online
  • 30% of grocery shoppers said they redeem online/mobile coupons downloaded to their smartphone, up from 24% in 2017 and 19% in 2015

Top Stories on How COVID-19 is Impacting Supermarkets

A recent SupermarketNews article shared the latest news on retailer and consumer response to the coronavirus pandemic.

Among the top stories were:

  • Of shoppers polled by Acosta, 38% said they stocked up on groceries at the start of the COVID-19 crisis and would do so again if another shutdown occurs.
  • More than 4,000 of Walmart’s 4,700 U.S. stores will expand their closing time from 8:30 p.m. to 10 p.m. by Aug. 17.
  • Two of the largest retailers are expanding their delivery options, including beyond grocery items, in their bids to challenge Amazon’s e-commerce dominance: Walmart & Kroger
  • Whole Foods launches free virtual home economics classes,

The article also features a slide show depicting new and emerging news related to the pandemic’s impact on the grocery retail sector.

Read full article…

4 Ideas for Supermarkets in the New Normal

The pandemic has changed the way people shop and what they care about most, says strategy-business.com. And most likely for the long term.

So, as a result, retailers’ strategies must also change.

“Whether the trip they’re looking to win is inside a store, curbside, or at a customer’s front door, emerging from the crisis on a strong footing will require retailers to plan around this new normal. Those that are best at sensing demand and responding quickly with engaging and brand-defining experiences will “win the trip” and see the highest return on their investments in those experiences, or return on experience (ROX),” the article said.

The piece goes on to suggest that retailers have likely seen growth in demand for certain categories, including food and beverage, personal care and wellness, home improvement, and pet care, as most of life’s activity has shifted to the home. Consequently, extra care (and inventory) in those categories will be necessary. Supermarkets also have an opportunity to “compete for trips — real and virtual — and reinforce their brand leadership by offering shopper resources, such as recipe ideas and educational content, in these categories.”

The authors suggest these four key ways that retailers can compete in the new marketplace:

  1. Improve and personalize targeting.
  2. Reinforce consumers’ category interests.
  3. Invest in targeted subscriber acquisition.
  4. Reimagine loyalty programs.

Read the full article…

Reinventing Grocery?

An interesting e-book, “Reinventing Grocery: The Timeline to the New Normal,” was recently released by co-creators Agilence and Date Check Pro.

With no sales or marketing messages, the publications shares straightforward content about several key issues affecting the supermarket business, such as:

  • How former “slow moving” categories may be worth further investment
  • The role Associates play in future customer acquisition & retention initiatives
  • Why cleanliness & safety protocols will arise as a key driver to new sales
  • Why a familiar industry adjacent to the grocery industry may emerge as a direct competitor
  • The DNA of the New Shopper

More information about downloading the e-book

Voice of the Customer

Supermarket shoppers appear to be optimistic about things “returning to normal” according to a recent study by Acosta Research, thought the results vary a bit based on certain demographics. They also believe that some of the new in-store behaviors being put in place, such as hand sanitizing and mask wearing, may become permanent.

According to the study, 51% of shoppers polled expect life to return to normal in less than six months, while 29% believe it will take more than a year to return to pre-coronavirus behavior and daily life.

Summarized in a SupermarketNews article, the study also indicated that many of the current safety protocols have become second nature to shoppers, and that Millenials and Southerners are the most optimistic about a return to pre-Covid life.

43% of those surveyed believed their state was “reopening” at an appropriate rate, while 39% said steps toward reopening were being taken too soon. Only 13% said their state’s reopening plans were moving too slowly.

A bit closer to the aisles, 68% of shoppers reported using a hand sanitizer before or after shopping, and the same percentage reported wearing a mask while shopping. The study found mask usage has doubled since early April (most popular among shoppers in the Northeast) and nearly half of shoppers (49%) reported shopping during off-peak hours to avoid crowds. The use of self-checkout has risen as well with 34% of shoppers choosing to do so.

Not surprisingly, shoppers are over-buying select items depending upon expectations of supply shortages. The current (as of mid-May) item of concern is meat, as opposed to the paper products buying frenzies during the first quarter. Of those who are “stocking up,” 34% said they were doing so because they are “eating at home more often” and 31% said the reason was fear of shortages or an attempt to reduce the frequency of shopping trips. 35% noted higher prices,

Order for Pick-up Best Practices

A recent SupermarketNews article referenced the fact that the gross majority of people in the US own a smartphone and that this has led to a “NOW” economy where almost everything consumers want is available at their fingertips or on-demand. “These expectations provide a great opportunity for grocery brands to grow revenue if they can provide the pickup experience that customers are looking for,” the article said.

The piece went on to cite data from Rakuten Intelligence indicating that “Order for Pickup” has grown 2.5x faster than delivery over the last 3 years and that over 60% of consumers having tried curbside pickup or “click and collect.”

To capture those valuable and loyal mobile-first customers, grocers must be prepared to offer the right products as well as a top notch experience.

In fact, the article referenced a study by PWC highlighting that 73% of customers point to experience as a critical factor in their purchasing decision.

The following 5 best practices were then identified as critical to a successful Order for Pickup program:

  1. Focus on logistics and infrastructure. Clear signage, dedicated parking and pickup areas will reduce wait times and positively impact the customer experience.
  2. Leverage data to personalize the experience. The lower the wait time and the more personalized the experience becomes, the higher the customer perception of the overall shopping experience.
  3. Optimize technology to alert employees when customers arrive to pickup their orders.
  4. Provide dedicated employee training so they can provide high-levels of service.
  5. Promote your program to drive awareness and usage.

SpartanNash Reducing Food Waste & Enhancing Customer Service with Flashfood

An earlier post featured SpartanNash for leveraging technology to enhance their online and order pick-up processes. Today we once again focus on the company as they have launched an innovative program to reduce food waste while enhancing customer service.

According to a recent Progressive Grocer article, SpartanNash is piloting a Flashfood mobile app at five of its West Michigan Family Fare stores, allowing customers to purchase meat, produce, seafood, deli items and bakery products that are nearing their “best-by” date at up to 50% off.

As you may know, Flashfood is a Toronto-based mobile app that operates in more than 440 grocery locations throughout Canada and the US.

After downloading the Flashfood app, customers can select a participating Family Fare store, choose items, pay for them directly on the app, and then pick up their items at the store’s customer service counter, where the purchased items are stored in refrigerators.

“Customer convenience is key with the app,” said Matt Bennett, Director Retail Consumer Innovation at SpartanNash. “This app is a win-win for customers and the environment.”

Read the full article…

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…

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…