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.