Meijer Adding Grocery Delivery Service
Meijer said Thursday that it's adding home delivery across its six-state footprint, starting with Grand Rapids, Mich.; Fort Wayne, Ind.; and Indianapolis, and will follow with its other major markets in Wisconsin, Michigan, Illinois, Indiana, Ohio and Kentucky. Meijer is partnering with Shipt, an on-demand grocery delivery service. The Shipt delivery service is membership-based, with either annual or monthly options. For $99 a year, Shipt members receive unlimited free grocery deliveries on all orders over $35. After signing up for Shipt, members can digitally shop a large selection of Meijer groceries, produce and everyday essentials.
Total Retail's Take: Meijer is wise to get into the grocery delivery business, a rapidly growing market. Online grocery sales in the United States likely will grow more than twice the rate of overall e-commerce in 2017 — 34 percent vs. 15.5 percent, respectively. U.S. online grocery sales will surge to $177 billion in 2022 from $71 billion in 2017, a 20 percent compound annual growth rate (CAGR), while Cowen & Co. projects overall U.S. e-commerce growth to experience a comparatively modest 12 percent CAGR.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.
