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.
Online e-grocery ordering and delivery platform Mercato has announced a subscription offering that provides unlimited free same-day deliveries for members in 25 states, a direct shot at the AmazonFresh program and other competitors. The program comes in Neighborhood and City flavors and uses DoorDash as its delivery partner.
Walmart’s answer to Amazon Prime on the grocery side, Delivery Unlimited, is expanding nationwide, the company said, reaching 1,400 U.S. stores now and 1,600 by the end of the year. The program had been piloted in Houston, Miami, Salt Lake City and Tampa, and will now be in all 200 markets where grocery delivery is available.
Kroger plans to build the second of 20 automated distribution centers in partnership with UK grocer Ocado for fulfilling ecommerce orders in Groveland, FL. The state-of-the-art FCs, built by Kroger and powered by Ocado’s automation technology, are just part of Kroger’s innovation push including driverless and same-day delivery.
Walmart and Deliv have decided to part ways, and the major retailer is still working with seven other delivery services to get grocery orders to customers, Reuters and others are reporting. Walmart has signed on four new delivery partners since January, including Deliv competitors Doordash and Postmates.
As demand for online grocery continues to grow, 97% of organizations in the industry believe current last-mile delivery models are not sustainable for full-scale implementation, and consumers are increasingly demanding better services but are dissatisfied with current offerings, according to a Capgemini study.