Ever heard the expression, “If you can’t beat them, join them.” Well that’s exactly what is happening at large grocery firms, Wal-Mart, Kroger and Meijers. Each of these grocery giants are feeling the pinch of the large dollar volume of on-line grocery sales that is currently “owned” by Amazon; and they’re “not going to take it anymore.”
According to a recent Nielsen Survey, on-line grocery shopping has increased from 16% to 20%, but what’s more revealing is that 50% of those on-line grocery shoppers shop on Amazon. So these large grocery retailers really have no choice but to seriously look at ways to enter the grocery delivery marketplace to compete head on with Amazon. To get these programs moving, they are currently utilizing several Last Mile delivery partners, such as Shipt and Instacart as a start. How well these Third Party delivery firms perform at the customer delivery level will either spell success or failure of this program; we suspect it will be the former.
This new approach to holding onto current customers is a “no-brainer” as far as we are concerned. It would behoove other grocery retailers to jump on the bandwagon as well and make the same decision before it’s too late.
Here is something from WSJ.com that might interest you:
Grocery heavyweights expand delivery services
http://www.wsj.com/articles/
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