Tag Archives: Grocery deliveries

Walmart, Amazon Go Head-to-Head on Delivery Services

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Walmart has been working hard, in recent months, to outpace and outdo Amazon as much as the latter has been disrupting many competitors in moving products  — including edible ones – to consumer’ doorsteps.

More and more, Walmart commercials and print ads tout its ‘no membership’ plan for no- or low-cost delivery service to consumers’ doors. The company also is growing its car-side delivery service – where a phoned- or emailed-in order is ready to be picked up at a designated store-side place. A  phone call from one’s car at that place to the store’s delivery department gets the order heading out the door.

Somewhat surprisingly, the delivery folks reportedly don’t mind performing their duties even in ‘off’ weather, according to a couple of them at a Lynchburg VA Walmart. Perhaps they are, justifiably, incentivized by tips.

Both of those services work remarkably well. The to-your-door service works better, perhaps, than Walmart imagined. But then, this is a smart company, and it may have realized a clever opportunity for customers living closest to Neighborhood Markets, the company’s scaled-down store model focused on food and little else: With the company’s entire product catalog available, much beyond what the Neighborhood Markets offer can be home-delivered, at no cost to the consumer. How? By delivering from the nearest full-service Walmart!

That is speculation on our part, but conceptually, it makes sense as a solution to a potentially serious challenge to Walmart.

This program also enables stores to cut inventory (in, say, pet supplies) and still offer a ‘full range’ of, products via the delivery option. In practice, this means that, for example, my local Walmart has been able – possibly coincidentally, possibly because of delivery issues – to leave shelves without some popular cat litters while still offering them through home delivery.

On another front – new patents – Walmart scored some seriously interesting ones recently. And Now U Know, the produce industry newsletter, reported on May 31 that recently approved patents included one for a navigation device for shopping cards, a wearable, tracking device designed to improve    employee productivity (think shelf stockers). And instore inventory trackers that can track when stock needs to be reordered – or shelves need to be restocked. A bit more esoteric is a patent that could  provide instore drone assistance for price verification and in-store navigation.

One or several of these concepts could be implemented in a store near you in the foreseeable future.

Meanwhile, Amazon is boosting membership fees for Prime service – which most users value most for its free delivery feature. The company also recently expanded Prime to Whole Foods customers in select areas. More recently still, according to International Business Times, the company expanded Prime offerings to twelve states beyond the original test area around Ft. Lauderdale FL. A company news release said the expansion affects 121 Whole Foods stores in Colorado, Idaho, Arkansas, Louisiana, northern Nevada, northern California, Texas, Utah, and Kansas – as well as the Missouri side of Kansas City.

The company says Prime discounts also are now in place at Whole Foods’ Market 365 stores around the country. That Whole Foods sub-brand was launched in 2015, IBT noted.

 

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Delivery Services, Smaller Stores, Point to Future of Food Retailing in America

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Grocery retailers who’d like to get into the home delivery game, a business so far dominated by such big players as Amazon, Instacart, Jet, Peapod and the like, are being offered an opportunity to “play” – in a very serious way – by Deliv, a crowd sourced startup that earlier this year got a $28 million cash infusion from UPS, undoubtedly the most experienced last-mile (from wherever to the customer’s door) delivery service in the US. Just-launched Deliv Fresh claims it can “offer same-day delivery from {retailers’] own branded sites,” according to an article in DC Velocity, which describes itself as “the market leading multi-media magazine brand serving the specific informational needs of logistics and supply chain managers and executives.”

Deliv says that while Amazon Prime “takes ownership of the customer transaction,” moving products from its own or partners’ warehouses direct to customers, the Deliv service “provides same-day service to grocers, meal services, and other perishable e-commerce providers such as FoodKick by FreshDirect, GetFedNYC, GreenBlender, Plated, BloomThat, The Cheese Store of Silverlake, Plum Market, and Eataly Chicago.” The company currently operates its core service in 18 markets and more than 100 cities, providing same-day, last mile delivery services for retailers and businesses including Macy’s, Best Buy, Kohl’s, and PetSmart.

Smart: They’re starting with a broad range of retailers, in a limited number or markets, testing the market, as it were, and preparing to roll out its service as and when appropriate.

The grocery retailing business is undergoing seismic changes these days, and will continue to do so as the likes of Aldi and upstart Lytl – like Aldi, a huge success as low-price-leader food stores in Europe – gain ground in the US. (Aldi’s been here for a long time, but has, for the most part, flown under the radar, since stores are, in a sense, struggling to get their low-price message out into their various communities.)

A surprisingly long article in the May 16 New York Times went well beyond reviewing a new book on the state of supermarket retailing (“Grocery – The Buying and Selling of Food in America”). The paper’s reporter went with book author Michael Ruhlman on a tour of a ShopRite store in New Jersey, getting an up-close-and-personal education on some of what’s happening in supermarkets today and, as or more important, what’s likely to happen in coming years.

One interesting point was that grocery deliveries will help influence an emerging trend – of stores getting smaller, and going back to being more customer-centric and less packed out with packaged goods of the type people are increasingly buying less of.

This is a topic you will see discussed more and more often on this blog. We also will talk more about what Aldi and Lydl are all about, and how they are likely to be big players – in way smaller stores than today’s typical ones – in the reshaping of American food retailing.

Watch this space.