Pickup services are more and more popular

Pickup services are available int he US from 2013. Consumers can order on phone or online from far away and get their package in the store. This is feasable for people on the go and not staying at home. For grocers and consumers alike, pickup has become the preferred e-commerce service during the pandemic. Shoppers enjoy the convenience and familiar routine of driving to their local store — not to mention the fee-free fulfillment a few large chains have implemented — while retailers appreciate the favorable profit margins compared to delivery.

In and out

At the beginning inside pickup points were typical then came the outside solutions like outside pickup points, drive-thru and curbside pickup which is the most popular now. Products can be chosen via website or app and an order can be placed. A notification arrives when the order is ready for curbside pickup. In a feedback customer tells when he or she is on the way. After parking on the designated spot he or she lett he store know and a staff member loads up the car. No personal contact required.

GlobalData research saying nearly 68% of shoppers say they will continue using grocery click-and-collect options after the pandemic has subsided.

Almost ten thousand stores of six retailers offer this service

Some chains, like Kroger and Walmart, have been able to leverage an already sizable pickup footprint, while others have scrambled to implement it at their stores. Companies have added pickup spaces and time slots in recent months. They’re also evaluating ways to make the service faster and more convenient for shoppers while making fulfillment more efficient.

Market leader retailer Walmar and Kroger had both a large base of stores offering pickup at the beginning of 2020. The grocers increased the number of store with pickup by 10-11% and they have waived fees during the pandemic and added more pickup slots and parking spaces at its stores — and has funneled up millions of new shoppers as a result. Walmart had the fastest curbside service among chains measured by Rakuten Ready, with average wait times of just over two minutes. The steeper growth for Walmart during the pandemic occurred in delivery, which expanded from 1,600 stores in February to more than 2,700 as the retailer rolled out Express Delivery, as well as unlimited delivery through its Walmart+ membership program. It also partnered with Instacart in August to start delivering groceries in four markets.

Target has offered in-store pickup since 2013 and curbside pickup has grown rapidly since it launched in 2017. But it wasn’t until this year that the company began adding fresh and frozen groceries to the service. After seeing demand soar, Target hit the gas on grocery pickup over the summer, more than tripling availability in just three months. The company increased from 400 to 1500 the number of stores with pickup in 3 months and expects to offer grocery items for pickup at close to 1,600 stores by the holidays.

Albertsons’ e-commerce strategy leading up to this year has focused primarily on delivery, including its own delivery service. The company’s Drive Up & Go pickup service has been slower to expand, but it’s increased locations by more than 70% over the course of year so far, particularly July and October, as the company saw consumer interest shoot up. Albertsons is quickly making improvements to pickup fulfillment and sees technology like automated micro-fulfillment as a way to drive costs further down.

Ahold Delhaize started the year with close to 700 click-and-collect locations across its five U.S. banners and has been gradually adding more, particularly in its Food Lion banner, which introduced pickup services at more than 60 stores this fall. Next year, the company will increase pickup availability by nearly 60% as it also pilots other e-commerce programs, including a subscription program and digital marketplace.

Whole Foods has gone all-in on pickup, harnessing the resources and expertise of parent company Amazon to unlock the service at all of its U.S. locations. Suburban locations offer curbside service while the chain’s many urban locations offer pickup from the customer service counter. Pickup is free for Amazon Prime members who place orders of $35 or more.