Archive for the ‘Instore Pickup’ Category

Service of Where’s the Milk? Confusion When Grocery Stores Move Things Around

Monday, October 8th, 2018

Photo: aldridgeonline.com

If you routinely visit a grocery store that’s being remodeled, you know your shopping expedition will take longer than usual while you search for the milk, favorite cookies or pasta. One of my favorite stores also keeps switching things in the meat department even though its renovations are over. There must be a good reason, other than to hope I become tempted by other items while looking for what’s on my list.

Expecting to pick up a bag of M&Ms at the checkout counter at a grocery chain? Soon some will have freezer cases placed in front instead. Heather Haddon wrote about the motivation behind major product location shuffles as stores prepare for increased orders placed online for in-store customer pickup. They hope these customers, as they wait for their order in the front of the store, will add a few major items–an ice cream cake, a few frozen dinners or bags of fries and veggies–rather than a pack of gum or a candy bar. She wrote about the displacement of impulse items and other anticipated changes in her Wall Street Journal article “E-Commerce Reshapes Grocery Stores.”

Photo: supermarketnews.com

Americans spend $800 billion a year on food and drink, she reported, and supermarket chains don’t want too big a chunk going to Amazon and other giants. Haddon wrote: “E-commerce represents less than 5% of U.S. grocery sales currently, but food and beverage sales are growing far faster online than in traditional supermarkets. Forrester Analytics predicts that by 2022, the U.S. online grocery market will total $36.5 billion, up from an estimated $26.7 billion this year.”

According to Haddon, Walmart and Kroger are “spending tens of millions of dollars to acquire digital-ordering technologies, implement home-delivery systems and build thousands of store pickup points for online orders. Kroger, the U.S.’s largest supermarket chain, has hired or assigned nearly 19,000 workers to run an estimated 1,400 pickup sites for online orders, covering roughly half of the company’s stores.”

Photo: edgylabs.com

Haddon identified risks for the chains from the enormous upfront investment to irritating traditional customers who compete for goods whisked off shelves to fulfill online orders. Currently, supermarkets don’t have warehouses as Amazon does, though they may in future.

Meanwhile, “Clerks fulfilling online orders can clog aisles and checkout lanes or pick over the best produce, customers and grocery consultants say.” Haddon concluded “Through it all, grocers are struggling to find a balance between encouraging customers to place orders online and drawing customers into their stores.”

Do you shop for your groceries online? Are you tempted? It must be a time-saver to simply show up at a store and drive away minutes later with packages of groceries. Does the concept work for cities where people don’t usually own cars? Would you miss seeing what’s new in categories such as ice cream, frozen food, bakery and yogurt? Do you ever pass an aisle, see something like mustard or strawberry jam which reminds you you’re about to run out? How will internet ordering gain such purchases without irritating customers with popup suggestions?

Photo: petco.com

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