Tag Archives: Grocery Shopping Trends

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

we-deliver_sign

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.