Consumers go mobile to buy groceries online

By George Anderson

MARCH 11, 2016

Mobile devices are increasingly becoming a larger part of the retail experience. Whether consumers use smartphones to comparison shop while in stores or place orders online using tablets, the trend is clear. Now comes further evidence of consumer adoption from Peapod, the online grocery delivery service, which has its own mobile tale to tell.

Peapod CMO Carrie Bienkowski told Digiday that one-fourth of new users of the service use mobile devices to begin and complete orders. Thirty-four percent of all Peapod users, up from 25 percent last year, no longer use a desktop computer to place their orders.

One key area of emphasis for Peapod is using the data insights gained through mobile app to increase personalization. The company also believes it can use native advertising on mobile devices to develop a deeper connection with its customers and influence purchasing levels.

"We should think more like a fashion retailer to tap into the micro influencer communities and inspire great content," Ms. Bienkowski told Digiday. "But we don't want to focus [only] on a young audience because the notion of online grocery is not just for Millennials."

Peapod is operating in an increasingly competitive market. Major pure-play e-tail and brick & mortar operators, such as Amazon.com, FreshDirect, Kroger and Whole Foods, are investing in the space.

Source: Instacart

Last year, Kroger announced plans to expand its ClickList online grocery ordering and in-store pickup system to nearly 45 percent of its locations. The service, which includes a $4.95 fee for regular orders and $7.99 for expedited ones, gives customers a choice of 40,000 SKUs from which to order. Customers submit their orders online and then arrive at the store at a designated time where store staff load orders in their cars.

Whole Foods Market has just confirmed making an investment in Instacart, which handles online deliveries for the upscale grocery. The two companies, which began working together in 2014, have renewed their partnership for another five years.

"We've seen how much our customers love this fast and convenient way to receive Whole Foods Market groceries right to their door, so we are excited to extend our relationship with Instacart," said Walter Robb, co-CEO of Whole Foods, said in a statement. "Working together, we will continue to find even more ways to create outstanding shopping experiences — whether they're happening in the digital space or within the four walls of our stores."