CommonSense Robotic, an e-commerce startup reported that same-day grocery delivery offering from top grade retailers increased by 500% last year.
The retailer’s data based report revealed that in 2018, click and collection locations increased by over 230%. And the click and collect service now spread all across 45% of Walmart stores, 30% of Ahood Delhaize stores and 58% of Kroger stores.
Research further showed that the number of customers who prefer the same day delivery is four times as much as those with a preference for in-store pickup. On the other hand, most retailers now focus on click and collect, as reported by CommonSense m. Commonsense said, “Target is the only brick and mortar retailer that primarily focus on same day delivery. Last year, Highly reputed retailers invested over $28 billion in grocery e-commerce, and there’re hope that the growth will always gain more momentum.
CommonSense estimated the growth of online grocery to be 35% between 2017 and 2018, which amounts to about $24 billion of online grocery sales- over 3% of the overall grocery market.
Online grocery may continue to penetrate the market and reach over 10% in 5 years, says Louis, and could even go up to 20%.
As shoppers now delve more into the e-commerce space as a preferred grocery shopping option, same day delivery and click and collect serve a different purpose.
Grocery delivery has significantly become a good deal among customers for different reasons, mainly because it saves shoppers from the hassle of journeying through miles to purchase groceries or that it makes it easier for non-mobile shoppers to purchase a large amount of grocery without transportation worries.
Alternatively, click and collect is ideal for active shoppers looking to trim down the time spent in the store.
Combining personal survey findings with studies from Nielsen and Moffat Nathanson, commonSense confirmed that the shoppers love for grocery delivery superseded the in-store pickup.
Nielsen and the food marketing institute who conducted another research gave an entirely different reason why most shoppers prefer delivery to in-store pickup, ” over 69% of shopper definitely prefer delivery, however, we think this preference was because the delivery service has been around for a while. Shoppers are just getting used to the click and collect models which are gaining momentum as millennia prefers the model.
While current research shows that shoppers prefer the grocery delivery service over other models, research must continue in other to ascertain customer’s preferences as other models become simpler and accessible.
The significant growth in grocery delivery dates back to Instacart, CommonSense said.
Instacart partnered with over 300 grocers In the United States to deliver grocery all over the world and there’s no sign they’re stopping soon especially with their recent fee reduction.
Instacart rapid success has also fueled healthy competition among competitors as they strive to be a better competitor to Instacart- a development that contributed to more expansion.
Additionally, a recent study from Brick Meet Clicks further added to CommonSense claims on the fact that customers prefer delivery to in-store pickup. They reported that three-quarter of consumers would choose delivery over in-store pick up if availed the choice. The firms, however, believes that click and collect look promising and costs both retailers and customer less money.
In-store pickup utilizes current store space which doesn’t cost customer much money compares to the delivery fee. Click and collect enables the flexibility of going directly to store if shoppers need to add more purchase, or get something they couldn’t find online.
Click and collect give room for personal connection for shoppers. Retailers in the United States are investing heavily in both the in-store pickup and grocery delivery services. Walmart is taking the lead in both services, with over 2,000 clicks and collect locations and ongoing plans to double grocery deliveries. Instacart is also moving into the click and collect business, supporting their partner’s interest and expanding their horizon. Amazon created prime now to simplify the process of in-store pickup. Thanks to Shipt, Target now has the same-day grocery delivery option in over 250 markets, and they’re planning more expansion.
Conclusively, since delivery has taken over the customer’s choice, competitors are trying to improve the industry standard. And they’re doing a good job.