The way we grocery shop is changing. What once seemed like an industry that couldn’t be affected by change and technology is drastically becoming a brand-new and more efficient industry.
In the society we’re living in, we want convenience above all, especially when it comes to tasks like picking up groceries. Everyone is busy.
Racing to the grocery store to pick up last-minute groceries, or to do your weekly trip when the grocery store isn’t too busy, has always been the way of life. It’s a daunting task for some, and that’s why we’re seeing a rise in new business practices from grocery stores.
Amazon (NASDAQ: AMZN) bought Whole Foods last year because it recognized the potential in the grocery market and that connecting with the traditional brick-and-mortar grocery store company could be a gold mine.
The majority of people would elect to get their groceries delivered if they could, especially if it were only a few items and would save them a few hours rushing to and from the store.
Amazon has been gradually introducing their food delivery service through its app. When Amazon purchased Whole Foods, it made a lot of grocery store companies concerned. The companies knew it was time to step out of the norm and start thinking of ways to improve their businesses to stay relevant in their industry.
And Cincinnati-based The Kroger Co. (NYSE: KR) is one of those grocery store companies…
Kroger Isn’t Afraid to Innovate
Kroger is one of the nation’s largest operators of traditional supermarkets. And it recently took a giant leap toward what it hopes will be the future of the supermarket industry.
Kroger has launched the first unmanned delivery service available to the general public in Scottsdale, Arizona. This service is currently only available through a single Fry’s Food and Drug store, a division of Kroger, located at 7770 E. McDowell Road. The vehicles being used by the stores come from a Silicon Valley-based company called Nuro. Nuro developed these vehicles and is calling them R1.
The R1 has no space for any passengers or a driver. It only has enough space for its deliveries.
Kroger Chief Digital Officer Yael Cosset had this to say in a news release:
Kroger customers are looking for a new, convenient ways to feed their families and purchase the products they need quickly through services like pickup and delivery. Our autonomous delivery pilot with Nuro over the past few months continues to prove the benefit of the flexible and reliable technology.
Customers within the delivery radius of the McDowell Road Fry’s store are able to order through Fry’s website or mobile app and pick when they want their groceries to be delivered. The Nuro vehicle will drive to the customers’ home at that time and alert them when their groceries have arrived. The customers then type in the code that they were sent. And when the vehicle arrives, they can grab their groceries from it! It’s as simple as that.
Adding Convenience to Your Grocery Shopping Trips
This new way to grocery shop is being categorized as online grocery shopping. And over the next decade, it’ll take off in an incredible way. Tech-savvy grocery store companies are taking a traditional idea and putting a new twist on it. Just like milkmen delivered milk to the doorsteps of customers in the past, these businesses want to deliver your groceries to your door.
According to Statista, as of 2017, the e-tail food and beverage segment had year-over-year revenue growth of about 18%. And in total, U.S. online grocery sales amounted to about $17.5 billion in 2018 and are expected to rise to almost $30 billion by 2021.
This is a growing market with constant demand. People and families need their groceries. And they always want to save their precious time wherever they can, especially when it means they’ll spend less time commuting. Having your groceries delivered to your door will soon become common practice. And whether they’re being delivered by actual human beings or driverless vehicles, our lives will be getting a whole lot easier.
Until next time,
Jennifer Clark
Pro Trader Today