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.
Wakefern Food Corp., parent of grocery brands ShopRite, Price Rite, the Fresh Grocer and Dearborn Market, has opened an automated micro fulfillment center in Clifton, NJ through a partnership with Takeoff Technologies, with plans to launch more.
Moving above and beyond the game-changing Whole Foods acquisition from 2017, Amazon is considering creation of a new hybrid grocery chain that would combine aspects of a pickup and delivery operation with a smaller retail space for shopping fresh items, according to a report in the New York Times.
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.
Despite the big push behind e-grocery, including significant investments in technology and delivery by major retailers such as Target and Amazon and mainline grocers such as Kroger, Ahold Delhaize and Albertson’s, the demand isn’t quite there yet, according to a recent survey from Mercatus.
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.