Grocery Outlet (GO) Goes E-Commerce with Instacart – October 22, 2021


The coronavirus pandemic has accelerated the transition to e-commerce, which has now become a fairly popular buying trend. Without a doubt, online shopping, including fast delivery, is here to stay, even in a post-pandemic world. The companies are focused on expanding e-commerce capabilities, including improving delivery services to make the customer shopping experience seamless. To top it off, the holiday season is just around the corner. Therefore, retailers are taking smart steps to make the most of the holiday season.

Go with the flow, renowned grocery store Grocery Outlet Holding Corp. (GO Free Report) has decided to break into the world of e-commerce via a pilot program in collaboration with Instacart. The pilot will last six months in the company’s 68 stores, offering basic necessities and essentials for same-day delivery via Instacart.

Instacart “a neighbor in the Bay Area” as the Grocery Outlet calls it, goes to great lengths to provide a unique shopping experience. This online grocery delivery platform will provide business customers with greater accessibility and convenience, including fast delivery and an in-store scavenger hunt experience. Well, the latter deal is likely to generate higher sales and allow the business to achieve greater success.

Let’s find out more

Grocery Outlet has been exploring complementary ways to deliver great value to its customers for some time. In addition, the company focuses on personalized customer marketing efforts.

In its call for last quarter results on August 11, management stressed that it intends to launch a test and learn approach to evaluate several e-commerce solutions, including online delivery and purchase. online, store pickup. In about two months, the company announced its partnership with Instacart and is looking to capitalize on the current demand for online groceries.

In addition to strengthening its progression in the e-commerce arena, Grocery Outlet is firmly focused on its store growth efforts. The company continues to develop its real estate portfolio to support 10% annual unit growth.

It has been making strategic investments to improve its functionality and scalability for some time now. These include improved point-of-sale, warehouse management, supplier tracking, inter-store communications, lease management, and financial planning and analysis. Over the long term, management estimates that there is potential for establishment of 4,800 sites nationwide.

Image source: Zacks Investment Research

We believe that Grocery Outlet’s flexible and differentiated business model, coupled with an expanded product offering, compelling offerings and increased customer awareness, will help fuel its sales and profits. Shares of this company currently Zacks Rank # 3 (Hold) rose 4.4% in the past month compared to the industry’s 2.3% decline. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Other players are strengthening their delivery services

Some other renowned players strengthening delivery capacities are Walmart (WMT Free report), Target (TGT Free report) and Five below (FIVE Free report).

Walmart has taken strong steps to strengthen its delivery arm, as evidenced by its investment in DroneUp, its partnership with HomeValet, on-demand drone delivery in the United States with Flytrex and Zipline, and a pilot project with Cruise to test the autonomous grocery delivery by electric car.

Target’s same-day services through order pickup, transportation, and shipping are commendable. The company has deployed resources to improve its omnichannel capabilities, including same-day delivery of in-store purchases and accelerating technology improvements.

Five Below has extended its partnership with Instacart to offer expedited same-day delivery service to all of its outlets. The company rolled out a curbside pickup option and accelerated its online shopping and in-store pickup business model.

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