Grocery Retailers Memo

With online grocery sales on the rise, there is no wonder why supermarket giants such as Walmart, Kroger, Safeway, and Supervalu who already account for 50% of Grocery Retail in the United States are starting to join Amazon in the digital realm. The purpose of this memo is to explain which major grocery retailers are utilizing third parties to either deliver or fulfill on-line grocery orders.

• The top five third-party click and collect and or delivery providers are: Instacart,
Amazon, Walmart, Shipt/Target and Peapod. Some retailers are mentioned multiple times as services vary by provider.

• Instacart presently service Sam’s Club, Costco, Kroger, Wholefoods, Safeway, Wegmans, Giant, Aldi and a range of other grocers to name a few. Instacart is currently operating in 44 of the 50 states. Instacart currently offers home delivery and click and collect services; however, services vary by location.Though Instacart started out in the grocery industry,

Walmart does not currently charge customers to use their service; however, customers must subscribe to Amazon in order to use Amazon Fresh, Amazon Pantry and Amazon Prime. As previously mentioned, prices may vary based on time, location, and services rendered. • With the acquisition of Shipt and Grand Junction in late 2017, Target is really setting themselves up to win in grocery eCommerce. With this procurement, Target will continue all business relationships and agreements previously made with Shipt to include Target along with other retailers such as Lidl, BI-LO, and Publix. At this moment, Shipt is operating in 34 of the 50 states.

• Even though Peapod is relatively small compared to other retailers on this list, Peapod model gained the attention of such retailers as Giant and Safeway therefore helping them compete in the digital arena. Peapod mostly service the Northeast and Midwest states which includes twelve states and District of