Bucking the trend that has seen grocery delivery sales decline over the past several months, online ordering and pickup in stores remain popular among shoppers. According to the latest figures from Brick Meets Click and Mercatus, the share of orders received through pickup grew nearly seven points year-over-year to 42%, while the share of delivery and ship-to-home orders dropped two and four points, respectively.
For June, around one-third of active online users relied on pickup exclusively for online grocery orders, compared to 16% who only used delivery.
With the increased demand for grocery pickup among shoppers, grocers have been moving quickly to improve their Click & Collect operations over the past year.
Innovations in Grocery Pickup
Well-capitalized mass merchants like Walmart are making significant investments in warehouse automation, shipping and loyalty programs to funnel more e-commerce shoppers. Grocers, meanwhile, are rolling out new service elements in pickup, which is not only popular with shoppers but also more profitable. This includes automated kiosks and lockers that store orders and technology that reduces waiting times for customers when they arrive to pick up their orders.
United Supermarkets has enhanced its grocery pickup service with satellite technology that allows customers to share their location using smartphones as they drive to the store and signal their arrival in the pickup zone, helping cut the time it takes to fulfill orders and get groceries into the hands of customers.
Another retailer, Cleveron, teamed up with Walmart on its in-store pickup towers, offering grocers pickup lockers with temperature-controlled zones for hot and cold groceries, which shoppers can access via QR codes or PINs.
The Cleveron grocery kiosks are designed to be an outdoor solution that can solve last-mile challenges. Retailers can place these units anywhere, including next to office buildings or in rural areas where grocers don’t have a physical store.
Pickup-only locations like dark stores are also generating significant industry buzz. Dark stores are former supermarket spaces that retailers convert into an e-commerce warehouse. These stores meet online demand more efficiently because they take out the complexity of operating in an in-store environment.
But before retailers jump to open dark stores, they should consider the in-store purchases made by shoppers collecting their pickup orders. According to the ChaseDesign BOPIS survey, 90% of shoppers still go into the store when picking up an order.
Increased foot traffic inside the store allows grocers to boost in-store sales. By making simple changes to their product displays, retailers can draw customers further into the store and encourage them to make a purchase.
Customers are drawn to attractive, organized product displays. On the other hand, poor shelf management can lead to cluttered displays, false out-of-stocks and ultimately frustrated shoppers. Make purchasing decisions easier for your customers with pusher display systems from Retail Space Solutions, which keep products on the shelf organized and front-faced, reducing or eliminating false out-of-stocks.
For more information on pusher display systems from Retail Space Solutions, visit www.retailspacesolutions.com or call 1-800-279-5291.