Online grocery has been slow growing due to a host of factors, from friction in the shopping process to high costs and a lack of trust in letting someone else select products. To solve many of these issues, retailers have rolled out innovations like same-day delivery and click and collect. In the USA, Kroger and Walmart are among the two largest grocers offering a click-and-collect service, and both have made significant investments to expand this service. A click-and-collect service cuts out delivery fees, which are often the root cause for many consumers’ hesitation towards online grocery shopping, according to latest IRI survey.
ONLINE GROCERY AND AUTOMATION
In addition to promoting click-and-collect, retailers are looking at fulfillment efficiencies like automation. Prices are also coming down among large competitors, with Whole Foods stores offering free two-hour delivery for Amazon Prime members, while Instacart recently slashed its fees.
Driverless delivery is another innovation aimed at saving costs — though for now, the technology remains limited to a smattering of test runs. Kroger and Walmart are testing the waters in Arizona, while Stop & Shop is working on getting a mobile grocery up and running on the streets of Boston.