Watch: Is Grocery Delivery Dead?

Watch: Is Grocery Delivery Dead?

Time Stamp: September 1, 2023 12:00 AM
Source Node: 2250574

Does the end of the pandemic signal the end of grocery delivery? Katherine Lehman, director of digital marketing at Onfleet, explains why that channel is alive and well.

Is grocery delivery dead? What series of events has led us to even ask the question? Lehman says it dates back to the COVID-19 pandemic and its aftermath. During the lockdown, online ordering and delivery of food was the only option available to many consumers. But when the pandemic abated and restrictions were lifted, many continued to available themselves of home delivery because they had grown used to the habit and didn’t want to take time out from their busy lives to go to a physical store. For that reason, grocery delivery, a $95 billion market in 2020, is expected to double in size by 2024, Lehman says.

One of the industry’s last holdouts in grocery delivery is Trader Joe’s, which announced that it would never offer that option. The specialty retailer depends for its success on the “personalization of the shopping experience,” and believes it could never replicate that in an online environment. 

Lehman begs to differ. She says a number of online retailers have created a “holistic personal experience” similar to that of Trader Joe’s. Surveys find that 70% of consumers are more likely to shop at a retailer that offers delivery, Lehman says, adding that Trader Joe’s is missing out on that market opportunity.

How, then, can a grocer offer a compelling customer experience through online ordering and delivery? According to Lehman, it all comes down to personalization — being able to replicate the in-store experience with respect to such things as product recommendations by store staff and a pleasant checkout experience. “It’s the little things that give you warm fuzzy feelings,” she says. 

Trader Joe’s is understandably reluctant to place itself in the hands of a third-party delivery service. But Lehman says such a partnership can be successful if the partner offers a last-mile experience that preserves the grocer’s brand and provides a “white-glove” service.

Time Stamp:

More from Supply Chain Brain