Progressive Grocer

SEP 2016

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rocers, are you offering click- and-collect yet? If your answer is no, what the heck are you waiting for? As this issue went to press, there was plenty of buzz about Amazon's latest drive-up grocery store being built in the Seattle area. e 9,800-square-foot location, expected to serve as a pickup site for shoppers placing online grocery orders, will join two other such sites in the San Francisco Bay area. Meanwhile, Walmart has ramped up its online grocery channel activities by acquiring Hoboken, N.J.-based, which, along with the Benton- ville behemoth's nationwide sales and distribution infrastructure, makes for a formidable presence. It's part of Walmart's quest to provide a seam- less consumer experience, as Greg Foran, president and CEO of Walmart U.S., told attendees at the Grocery Manufacturers Association's annual lead- ership forum in late July, declaring, "Now is not the time for Walmart to pull punches." "ere is a battle brewing between Walmart and Amazon, with grocery as the battlefield," says Barry Clogan, SVP of business consulting services at Winooski, Vt.-based MyWebGrocer. "Grocers who do not enter the online grocery space and find ways to compete now risk getting caught in the crossfire and losing business down the line." Not that traditional grocers haven't been hard at work defending their turf. Keasbey, N.J.- based Wakefern Food Corp. has been particu- larly successful with its ShopRite from Home online shopping, pickup and delivery service, which reportedly has been growing its share of the company's overall sales. Wakefern also part- nered with Samsung on the new Family Hub "smart" refrigerator, which expands the Internet of of ings to allow consumers to place stock- ings of ings to allow consumers to place stock- to of ings to allow consumers to place stock- allow consumers to place stock- up orders right from their kitchens, as PG right up orders right from their kitchens, as PG from their kitchens, as PG detailed in our February 2016 issue. n detailed in our February 2016 issue. our February 2016 issue. Since then, the list of grocers big and then, Since then, the list of grocers big and the list of grocers big and small launching or expanding click-and- nching small launching or expanding click-and- or expanding click-and- collect and delivery services, on their d collect and delivery services, on their delivery services, on their own or through partnerships, has grown longer: Kroger's Ralphs banner in Southern California; Martin's, a 22-unit chain in northern Indiana and southern Michigan; Strack & Van Til in Chicago and northwest Indiana; Niemann Foods in Il- linois; Publix in Miami; Rosauers in Washington state; Meijer in Michigan; Key Food in New York; Food Lion in North Carolina ... the list goes on. According to Barrington, Ill.-based Brick Meets Click, Amazon is already the biggest player in online grocery, capturing nearly half of all trips, which may explain why even some traditional grocers are partnering with them. In May, Grand Rapids, Mich.-based SpartanNash, which operates 160 of its own supermarkets and supplies many independent grocers, agreed to supply Amazon's distribution centers with grocery products. And in March, Seattle's PCC Natural Markets teamed with Prime Now, Amazon's two-hour delivery service, to deliver local, or- ganic, sustainably sourced food. Meanwhile, Amazon Dash buttons are further pushing center store GM shopping into an autopi- lot replenishment mentality. MyWebGrocer's Clogan, whose company's platform was selected earlier this summer by Pitts- burgh-based Giant Eagle to power its omnichannel experience, says the time for grocers to act is now. "One of the things that Amazon is really good at is being a logistics and supply chain company, much like Walmart is," he asserts. "Amazon's active consideration of ways to apply that core competency to grocery brings us full circle to the fact that grocers need to be con- cerned that companies with this kind of existing expertise are looking to break into their space. Consumers are increasingly open to digital in- novation when it comes to grocery e-commerce, and traditional grocery is unlikely to hold their attention or wallet shares for long." New Name, Same PG Progressive Grocer's parent company will hence- forth be known as EnsembleIQ , encompassing all of the publications, events and other proper- ties of the recently merged Stagnito Business Information, Edgell Communications and Path To Purchase Institute. e name reflects how all of our titles work to- gether as a team, and we expect that these combined resources will serve to make PG even more relevant to, and informative for, the grocery business. Learn more at PG Space Invaders To grocers not offering online shopping: What the heck are you waiting for? G Jim Dudlicek Editor-in-Chief [email protected] Twitter @jimdudlicek 8 | Progressive Grocer | Ahead of What's Next | September 2016 Note By Jim Dudlicek

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