Grocery pickup is here to stay. Here's how it's evolving
After seeing grocery pickup orders take off during the coronavirus pandemic, grocers are looking to the future of the service and where to invest in the spectrum of pickup options.
“It’s the equivalent of five years’ growth within a matter of the month”
David Bishop, partner at Brick Meets Click, said about the e-commerce boom from late March to early April.
Brick Meets Click survey data has shown shoppers are opting for pickup over delivery during the pandemic, with 54% of sales coming through click-and-collect in June. The firm also found that 18% of monthly active users, which Bishop defined as households that make at least one online grocery order during the past month, only use a pickup service.
“So if you're a retailer that is in delivery only, there is a sizable segment of your market that isn't attracted to your service,” Bishop said.
Grocers and mass retailers responded to the surge by boosting their pickup capabilities. In Q1, Kroger added time slots and waived the $5 fee for its pickup service, which it offers at more than 2,000 stores. Amazon tripled its grocery pickup slots in Q2 and now offers the service at nearly 500 Whole Foods stores. Target, which increased its grocery pickup service availability to 1,500 stores and is continuing to expand the service, saw curbside pickup sales grow 734% in Q2.
Albertsons’ curbside pickup service is booming, outpacing delivery and increasing more than 1,000% during the grocer’s second quarter on a year-over-year basis, according to a recent earnings call. The grocery store chain is planning to expand curbside pickup to 1,400 stores — more than half of its stores — by the end of the fiscal year.
