Tag Archives: online grocery shopping

Study Predicts Increased Investment for Online Grocery

A recent SupermarketNews article reported the “digital sector” will continue to grow in 2023.

“Grocery operators’ spending to support digital transactions will increase by 2.3% next year despite a 1% shrinkage in technology budgets,” the article said, citing an October report from Grocery Doppio, a grocery insights and data provider. ,

Other findings:

  • 23% of grocers plan to increase their technology spend on digital in 2023
  • 77% said fulfillment efficiencies will be among the three most popular investments
  • 67% identified digital basket size nurturing would be a focus
  • 55% said system-wide inventory data accuracy/transparency would be a priority

Read the full article…

Accelerating the Customer Experience?

SupermarketNews recently reported that Schnuck Markets will be providing 30-minute delivery with its “Schnucks Now” offering on smaller orders and fast delivery. 

“The new service allows customers to shop from a limited assortment of fresh groceries, pantry, household essentials, alcohol, meals, and snacks, with delivery in as fast as 30 minutes with no priority fees and lower delivery fees,” the article said.  

In today’s competitive marketplace, this seems like another step forward in providing an enhanced customer experience. As you may know, Schnuck’s has offered delivery and pick up options for some time, and has also partnered with DoorDash to provide prepared meal delivery.

The piece went on to quote Chace MacMullan, Schnuck’s Senior Director Digital Experience, who said, “‘It’s been something we’ve been talking about for a while. We partner with Instacart and together we’re always looking at different ways to innovate. Reach the customers where they are, and where they are in the delivery schedule.”

USDA Supporting SNAP Online Grocery Shopping

A recent SupermarketNews article reported that the U.S. Department of Agriculture (USDA) is launching a $5 million competitive grant program to help expand the number of retailers that offer recipients of Supplemental Nutrition Assistance Program (SNAP) benefits online grocery shopping.

Retailers will need to apply to participate in the program, which will provide support with the “technology and systems necessary to enable SNAP e-commerce,” the article said.

The piece went on to explain the objective is to give SNAP participants access a larger diversity of retailers while shopping for groceries online, according to a source at the USDA. The grant is funded by the American Rescue Plan stimulus legislation, enacted last year.

The article then quoted Stacy Dean, deputy undersecretary for food, nutrition and consumer services at USDA, who released a statement saying, “Online grocery shopping is a vital resource that improves access and convenience for all, including low-income families. We are excited about this grant’s potential to provide new and existing retailers with tools to redeem SNAP benefits in ways that improve customer service for SNAP participants, especially those that face barriers in traveling to a physical store.”

Read the full article…

Walmart Increasing Drone Delivery

A recent SupermarketNews article reported that Walmart plans to roll out more drone delivery options for online orders to six states, encompassing 4 million households via the service.

The piece quoted David Guggina, senior vice president of innovation and automation for Walmart U.S., who said, “Walmart aims to expand DroneUp delivery to 34 sites in Arizona, Arkansas, Florida, Texas, Utah and Virginia by the end of 2022.”

According to the article, once implemented the move will give Walmart the ability to deliver more 1 million packages by drone annually.

In preparation, Walmart had made trial deliveries of COVID-19 home test kits, which demonstrated that drones could provide delivery in minutes rather than hours; and while it was initially expected that consumers would use the service for receiving emergency goods, they’ve found people are using it for the convenience, like a “quick fix for a weeknight meal.”

Another example of leveraging technology to initiate change that enhances online shopping, the customer service and the customer experience.

The Evolution of Online Grocery Shopping

A recent SupermarketNews article shared insights into how the dynamics of the online grocery market have changed.

Not only are more shoppers using online grocery options than before COVID, but they are also split in which “type” of online platform they prefer.

This nuance bodes well for how conventional grocers can strengthen their online grocery services to improve performance, because it turns out they aren’t really competing with the mass merchandisers who are far more developed in executing their respective online strategies and who operate on a much larger scale.

“We know from Brick Meets Click’s monthly e-shopper research that today’s shoppers choose to place online grocery orders with mass merchandisers for very different reasons than when they choose to place online orders with conventional grocers,” the article said. “In this context, mass rivals are not conventional grocers’ most meaningful competitor.”

A few additional data points from their research that conventional retailers should consider include:

  • In 2019, stores that had operated an online grocery service for a longer period of time reported higher weekly sales. This correlation no longer exists. COVID has changed the circumstances that drive adoption and usage.
  • The impact of a store’s service area population has also shifted. In 2019, stores in the largest markets generated the highest level of weekly sales; today, stores in mid-sized markets reported the strongest sales. In high-population areas, there is simply more competition for online grocery spending than there used to be. This makes it harder to grow without expanding in other ways.
  • Offering customers a choice between pickup and delivery instead of just one option continues to have a significant impact on sales.

Amazon Reduces Waste with New ‘Curbside Recyclable’ Delivery Packaging

SupermarketNews recently reported that Amazon has unveiled a new sustainable food packaging solution for the point of delivery.

The article referenced a statement from Stephenie Landry, vice president of Amazon Grocery, indicating perishables deliveries from Amazon Fresh and Whole Foods Market now will come in “curbside recyclable” insulated paper packaging.

“Rolling out just in time for Thanksgiving, Amazon’s new packaging is made from recycled paper and is curbside recyclable. Whether customers are ordering turkey, green beans, or frosty pints of ice cream, chilled and frozen foods from Amazon Fresh and Whole Foods Market will arrive insulated in packaging that is easy and convenient for customers to recycle at home.”

As part of Amazon’s overall sustainability effort, they say the new packaging will replace of the plastic liners and bubble bags that are often used to insulate chilled and frozen items. It will also cut back on material waste they claim, replacing about 735,000 pounds of plastic film, 3.15 million pounds of natural cotton fiber and 15 million pounds of non-recyclable mixed plastic annually.

Key considerations in developing the new packaging included sending less material to landfills and more back into the circular economy loop while ensuring that the insulated material properly chilled the food inside and was compact, flexible, easily recyclable, inexpensive and scalable, according to a company spokesperson.

2020 Saw Big Growth in Omnichannel Shopping!

A recent SupermarketNews article reported that omnichannel consumption grew by 50% this past year, and nearly half of all consumer goods purchases were made via e-commerce.

The report was based on new research from Nielsen.

Not surprisingly, both food and nonfood products have seen marked shifts in omnichannel shopping since the COVID-19 outbreak, and the number of shoppers who deem themselves as “heavy” or “exclusive” online shoppers for everyday items jumped 133% from September 2019 to September 2020.

The article went on to quote Nikhil Sharma, vice president of North America consumer analytics at Nielsen, who said, “Within the U.S., new behaviors have emerged that retailers and manufacturers must acknowledge, accommodate and swiftly act on — especially as online shopping habits begin to solidify. While we do expect a return of some kind to pre-pandemic habits, consumers will not be returning to a pre-pandemic retail environment.”

Order History Tool Most Popular as Consumer Preferences Shift
The article also pointed out that, when making online transactions, 29% of consumers polled by Nielsen found the order history tool to be the most helpful feature when shopping for nonfood items.

In a final statemen Mr. Sharma added, “Undeniably, consumers have more choices than ever in their path to purchase, meaning as consumer needs and preferences continue to evolve, it is crucial to have an omnichannel strategy in place to sustain and grow momentum in 2021.”

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.”

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.

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…