Dive Brief:

• The Giant Company is now offering an e-commerce subscription program that offers unlimited no-fee delivery and pickup for $98 a year or $12.95 per month, the company announced Tuesday.
• Choice Pass will replace PodPass, the online grocery subscription service offered through Peapod for $119 per year. Giant has branded Choice Pass in line with its Choice Rewards loyalty program.
• "Currently, one-third of our customers engage with us digitally. As that number grows, given the renewed interest in subscription services, especially grocery delivery, Choice Pass also positions us for future growth in the expanding digital landscape," Matt Simon, Giant’s chief marketing officer, said in a statement.

Dive Insight:

Giant’s revamped e-commerce subscription service follows similar offers from Hy-Vee, Kroger, Albertsons and Walmart as retailers look to secure loyalty among millions of newly active online shoppers.

Giant customers have been able to get no-fee delivery and pickup through Peapod's PodPass, but the Pennsylvania-based grocer wants to offer a service tailored to its brand. The company’s Choice Rewards program, which set the branding template for Choice Pass, launched nationwide last year and gives shoppers personalized offers and rewards for accumulating points across store and fuel purchases.

The phase-out of PodPass is the latest instance of an Ahold Delhaize banner pushing e-commerce provider Peapod into more of a back-end operator role. At $119 a year, PodPass, which is still available at Stop & Shop, is also notably more expensive than other grocery subscription programs, which charge around $100 annually. 

Customers are paying attention to the math of online grocery. Giant noted in its announcement that two deliveries a month or one pickup order a week will pay for the new service. Without Choice Pass, individual pickup orders carry a $2.95 fee and require an order of at least $30, while delivery orders have a $7.95 fee and have a $60 minimum. Choice Pass members will have the same order minimums, a spokesperson for the chain said.

Giant, like many other grocery chains, wants to keep digital customers ordering from them. Subscription programs ensure a financial commitment while also promoting value by allowing members to save money the more they order. While the chain didn’t outline any additional perks to the program, which membership platforms from the likes of Walmart and Hy-Vee are offering, Giant notes on its webpage that “Passholders” will be eligible for special offers and rewards.

Giant continues to update its branding and offer new services in order to keep pace in a fast-evolving industry. The company rolled out a new brand platform last year and has introduced Saladworks stations, Cook-In-Bag meals and more to its stores in recent months.