Will the Kroger / Instacart deal redefine the convenience of grocery shopping in America? – RetailWire

Sep 15, 2021

Kroger and Instacart are work together to throw “Kroger delivery now“A nationwide new virtual convenience delivery service that will deliver fresh food, household essentials, meal solutions and snacks from morning to late at night in as little as 30 minutes.”

Order fulfillment will be handled by Kroger’s grocery store operations across the country. Service customers will have their choice of products from an inventory of 25,000 items. The grocery giant says its selection, pricing and speed of delivery through Instacart means consumers won’t have to compromise associated with existing convenience delivery models.

The new service will require a minimum order of $ 10 and will include a delivery charge of $ 2.99. Annual Instacart members will not have to pay for delivery. Orders can be placed through the Kroger or Instacart apps or websites.

“Kroger Delivery Now is a differentiated solution in the e-commerce industry, not just the grocery industry,” said Rodney McMullen, President and CEO of Kroger. “Our new service gives customers an additional way to shop with us and recognizes the importance of convenience and immediacy. Operationally, this service reaches up to 50 million homes and it is an expansion of our thriving e-commerce model that demonstrates a strategic interaction between our assets, our extensive store network, our chain of stores. supply and our dedicated distribution centers and fleet, joined by Instacart’s unparalleled distribution model and the latest -mile technology to provide our customers with anything, anytime, anywhere without compromise.

The launch of the new service is part of Kroger’s plan to double its digital sales and profits by the end of 2023. The company saw its online business reach more than $ 10 billion last year.

Kroger will recruit its more than 2,700 stores operating under its eponymous banner and its various chain stores, including King Soopers, Ralphs, Smith’s and others, will all join in the effort.

Mr. McMullen called Instacart a strategic partner whose “industry-leading scale and ingenuity complements Kroger’s best assets, digital strategy and growing transparent ecosystem.”

The launch of Kroger Delivery Now, he said, “reinforces our commitment to be the leader in fresh produce and to accelerate digitally in an environment of heightened and sustained customer expectations for fresh produce at home. demand “.

He called the service a “game changer” and said Kroger was focused on leveraging its assets to deliver a seamless experience “in the most scalable, sustainable and profitable way.”

DISCUSSION QUESTIONS: Will the new Kroger Delivery Now service redefine what many Americans think about convenience when it comes to ordering fresh food and essential household items? Do you see this as a win / win / win for Kroger, Instacart and consumers, and what will it mean for the grocery giant’s rivals?

Braintrust

“The real change would be a functioning supply chain. If Kroger can make it happen, more power for them!”

“Instant delivery will be the new ‘green fee’ for grocery stores and perhaps dry goods retailers. “

“Where does that leave Instacart’s stated ambitions to operate its own micro-execution centers?” “

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