Meijer offers one-hour grocery delivery
September 15, 2016 04:26 PM
Midwest multichannel grocery chain Meijer Inc. is working with delivery app Shipt to offer home delivery within an hour.
Meijier, No. 332 in the Internet Retailer 2016 Top 500 Guide with 2015 web sales of $66.1 million, on Thursday announced the service is available in the Detroit area and that it will “evaluate possibilities for expanding to additional stores in the future.”
Consumers who sign up for Shipt, a membership-based app, can choose from 55,000 grocery items and other products, including fresh and frozen items, from among 25 Detroit-area Meijer stores that offer Shipt’s home-delivery service, Meijer says. Shipt uses contract-based personal shoppers to handpick items and deliver orders within a preferred one-hour time window. The arrangement with Meijer will employ more than 300 people, according to the companies.
A Shipt membership costs $99 per year or $14 per month. Delivery is free for orders over $35 and a $7 delivery fee is charged on orders less than $35. Most Meijer stores are open 24 hours, and deliveries will be available at some locations 24 hours a day every day of the week, with exceptions for some holidays, according to Meijer and Shipt. Shipt’s grocery delivery service is available to shoppers in 26 markets that are mostly concentrated in the southeastern United States.
Meijer’s at-home delivery expands its e-grocery options. In mid-June the grocer said it was offering curbside pickup of online orders at four stores in the Detroit suburbs after piloting the program in 2015 in Grand Rapids, Mich. Meijer has said 14 stores will offer curbside service in the Detroit/Ann Arbor area by October, with 33 stores in four states offering it by the end of the year. Curbside pickup is available within an hour for online orders of 12 items or less; 13 items or more requires a three-hour wait time.
Meijer is part of a broader trend. By the end of this year, 26% of U.S. consumers will have bought fresh groceries, up from 8% in 2015, according to research from investment banking firm Morgan Stanley. It estimates consumers will spend more than $42 billion on groceries online this year, up 163% from $16 billion in 2015.
Internet Retailer’s 2016 Online Shopping survey, taken in April by more than 500 U.S. online shoppers, found 39.5% of consumers said they would be willing to buy groceries online if it were available in their area. 15.1% said they had already done so and 45.4% said they weren’t willing to.