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.
Utilizing a team of employees vs. its bread-and-butter gig workers, DoorDash is rolling out 10-15-minute delivery of 2,000 grocery and essential items in New York from a DashMart store in the Chelsea neighborhood, the company said. Main rival Instacart is also working on a 15-minute delivery service, according to reports.
Fabric, maker of automated systems for on-demand micro fulfillment in urban settings, has raised a fresh $200 million, bringing its valuation above the vaunted $1 billion mark as it looks to expand to new markets beyond its current operations in Washington, DC, New York and its launch site of Tel Aviv.
Omnichannel grocery shoppers spend on average 20% more and shop more frequently compared to those that just visit the store, according to new research from Symphony RetailAI. The survey also found that while half of first-time e-grocery shoppers made a single online purchase, the other half become highly engaged and loyal.
As consumer dollars keep shifting online generally in the pandemic, e-grocery in the U.S. continues to explode, hitting a high of $9.3 billion in January, up 15% from November, according to a survey conducted by Mercatus/Brick Meet Click. Home delivery and store/curbside pickup represented 77% of the total.
Dutch supermarket company Ahold Delhaize, owner of Giant and Stop & Shop, has acquired a majority stake in Bronx, NY-based delivery provider FreshDirect, giving it a leg up on ecommerce fulfillment as e-grocery is exploding amid the pandemic. Centerbridge Partners is also acquiring a 20% stake in FreshDirect.
While total e-grocery sales in the U.S. declined 20% in August vs. June to $5.2 billion, other factors indicate strength in the sector, such as growth in average order value and repeat usage intent, according to a survey by Mercatus and Brick Meets Click. AOV reached a high of $95, the survey found, 32% higher than a year ago.
Fourteen months after introducing same-day grocery delivery in New York, Walmart has shut down fresh grocery delivery through Jet.com as the operation had stumbled badly, according to Bloomberg, including price increases to offset an estimated $20 loss per delivery. Jet will continue to delivery non-perishable items in New York.