Boxed, the once high-flying online answer to price clubs like Costco, BJ’s Wholesale and Sam’s Club, is considering a bankruptcy filing if it can’t find a buyer as its struggles continue 15 months after going public in a much-anticipated SPAC deal. At the same time, Boxed said it plans to lay off about 25% of its 136 employees.
Instacart is launching a new service aimed at SMBs, including possibly smaller niche and specialty grocers as well as office supply firms, in a bid to increase revenue lost to major grocers that have taken back fulfillment, as it looks to boost a sagging valuation ahead of an expected IPO.
E-grocery sales were down both sequentially and year-over-year in January, driven mostly by declines in the ship-to-home category, but gains from pre-pandemic levels have mostly held even though delivery options have been impacted by inflation, according to a Brick Meets Click/Mercatus report.
Grocery assortment planning has been upended by omnichannel. Grocers were comfortable relying on broader, older models that identified underperforming products to remove from a store shelf, or leaning into models that focused on SKU rationalization. But assortment planning now presents an entirely new bag of challenges.
Domestic e-grocery sales continued to fall from pandemic-fueled highs, decreasing 10% in November to $7.7 billion, down slightly from $7.8 billion the two prior months, according to Brick Meets Click/Mercatus. Fewer households are buying groceries online, combined with lower order frequency and smaller basket sizes among regular shoppers.
Senators are asking for a hearing and FTC oversight to review the proposed $24.6 billion mega deal merging Kroger and Albertsons into a grocery powerhouse, expressing concerns about its impact on the competitive landscape and on consumers dealing with soaring prices. The FTC has its work cut out with a hot political football.
Last week Kroger announced it was acquiring Albertsons for $24.5B, a major deal on the order of Amazon buying Whole Foods in 2017 that immediately reshaped the power structure in grocery. Neil Saunders, managing director and retail analyst at GlobalData Retail, helps us put the deal in context in our latest MCM CommerceChat podcast.
Perhaps the biggest competitive advantages delivery services have over traditional grocery is sourcing and convenience. So, what can traditional grocers do to stop their lunch being eaten? Continue to innovate your channels with products, services and tools that help customers get the most from their in-store experiences.
Kroger and its data arm, 84.51°, have launched a Science and Technology Solutions team. The focus is on delivering science and technology solutions that revolutionize customer engagement in retail. Andrew Cron, Chief Scientist and SVP of Science, and Barbara Connors, VP of Strategy and Acceleration at 84.51°, explain more in this podcast.
When a customer tries e-grocery shopping for the first time, they’re likely starting a critical step in their online grocery journey, underscoring the importance of the omnichannel shift. That means retailers must design digital products and service experiences that promote customer engagement online and minimize cart abandonment.