Tag Archives: online grocery shopping

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…

Groceries Delivered & Put-Away in Your Home?

According to a recent posting on techcrunch.com, Walmart has announced that it will begin testing a new service that will allow customers with August smart home devices, like the August doorbell and security cameras, to have their packages and groceries delivered inside their home instead of left on the doorstep. Grocery orders won’t just be placed inside the house like the packages, but will be put away in the fridge and freezer, when appropriate.

The retailer says it will soon start this test in the Silicon Valley area with select customers who have opted into to try the new service.

Sounds like continuous process improvement and the trend toward innovative customer service continues!

Read the full story…

Online Store “Made Easy” for Supermarkets

“We make it easy to take your grocery store online,” says Indemand a San Francisco-based plug and play platform for building an on-demand store or service.

According to the company website, their platform allows anyone to set up their own on-demand store without the need for any technical expertise. Customers can customize their solution, and also take advantage of a “mobile-first” solution.

While the service is available to “any” type of business, pricing plans for supermarkets range between $149 – $299 per month, plus a start-up fee and a per transaction fee.

 

Amazon “Pick-up” Stores Free for Some

According to a recent SupermarketNews article, Amazon has released information about new “click-and-collect” sites in Seattle.

Called “AmazonFresh Pickup,” the new concept will provide a full selection of grocery and household items available for online ordering and pickup, free to its Prime members.

The prototype sites are currently open only to Amazon employees. While Amazon did not specify any time-frames or plans, the article quoted an analyst at Wolfe Research, who said he expected Amazon will open as many as 30 such outlets this year.

In-store v. On-line Shopping?

33% of all grocery shoppers will shop online this year, according to a recent article posted on retailcustomerexperience.com, which shared data from the 2017 Grocery eCommerce Forecast from Unata and in partnership with Brick Meets Click.

The article notes that ‘egrocery’ is gaining greater consumer attention and 31 percent of shoppers are likely to order online, up from 19 percent last year.

The article also states that seventy-five-percent of shoppers will switch grocers if there is a better shopping experience to be had, and sixty-eight percent of shoppers who had shopped online the previous year are “somewhat” or “very” likely to switch to a grocer offering a better online shopping experience.

However, when looking at retail in total, a Modern Consumer survey shows that fifty-six percent of U.S. consumers prefer a brick and mortar shopping channel, and 93 percent of customer journeys involve multiple channels. The survey, which polled 1,000 U.S. shoppers, also revealed that over seventy-percent browse for products online before buying in a physical store, and only 10 percent of shoppers mainly shop online.

So while it seems that shoppers in general lean more toward the in-store buying experience, many more leverage on-line shopping in advance and an increasing number of grocery shoppers are trending toward the on-line experience, at least some of the time.

Should Supermarkets Partner for Fast Track to Online Sales?

In an effort to more easily ramp-up online shopping , some supermarkets have opted to partner with third-party service-providers like Instacart, Postmates and Google Express.

This option can make sense, especially when you consider the various processes involved and the time it might take to create and fine-tune them.

This perspective was expressed in a recent Retail Dive article,  which stated, “With deep knowledge of consumer analytics and logistics, these providers can quickly get products into the hands of customers — sometimes, in as little as one hour.”

But the article also raised a few good questions about brand loyalty and customer relationships…

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