Walmart as most of my regular readers I’m sure by now have read is testing delivery with Lift and Uber as they continue to find a solution to the competitive bold creative disruption that is Amazon, AmazonFresh, and Amazon Prime Now.
While Walmart knows that even with the strong growth of away from home breakfasts, the majority, 70 percent, of breakfast meals are consumed in the home. The average annual number of breakfast occasions per person in 2015 was 361, up 11 occasions per person from 2010 so the grocery sector is not going away. However who will win? Foodservice Solutions® Grocerant Guru® thinks Walmart will find its footing and retail customers looking for branded food products for less.
Today all legacy grocery retailers are looking for new avenues of distribution to boost revenue, selling food products and fresh groceries. However undeterred by the brand power of companies the ilk of Publix, Albertsons, Kroger Jet.com says, as it starts up a pilot grocery delivery program of its own.
“Re/code reported that the “Amazon killer” (Jet.com) had begun shipping fresh groceries, including milk, eggs, produce and meat, to customers living in New York, New Jersey, Connecticut, Pennsylvania and Washington, D.C. During the “pilot test,” Jet shoppers will receive their deliveries within one to two days, depending on the perishability of their orders, and purchases over $35 come with free shipping.”
Jet.com and a hand full of other companies like HelloFresh, Plated, and Munchery want to replace the panty, replace the use of stove, save consumer’s time, money and the headache of planning a meal. While Jet.com is simply testing fresh food the fact that they are price competitive is going to pressure legacy retailers even more.
Retail is filled with hardworking smart people and as Re/Code noted “Jet already turned plenty of heads its way when it kicked off with the implied mission of taking Amazon down a peg — or several — on the retail dominance scale, but if it can make headway on that path with fresh grocery delivery as its secret weapon, there will be more than a handful of retail pundits that find themselves eating crow.” Retail foodservice is a dynamic space not static. What are your next steps?
Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant ScoreCard. For brand, or product placement assistance our Grocerant Guru® has the skill-set you are looking for. Since 1991 www.FoodserviceSolutions.us of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869