Dive Brief:
- Superior Grocers, a Hispanic grocery chain that operates 45 stores throughout Southern California, will begin offering home delivery through Instacart, according to The Shelby Report.
- Superior is the first Hispanic grocer in the fiercely contested SoCal market to offer same-day home delivery through Instacart, according to the companies.
- Instacart charges $5.99 for orders of $35 or more. Instacart Express, which is $14.99 a month or $149 per year, offers free delivery of orders over $35.
Dive Insight:
Hispanic grocers have become major competitors in markets throughout the country, especially in the Southwest and along the West Coast. In addition to serving a rapidly growing Hispanic population, these retailers also serve a number of non-Hispanic consumers that visit for the authentic products and food stations these stores offer.
As chains grow and consolidate, offering online ordering and delivery becomes a key way to establish customer loyalty. But will shoppers used to the festive in-store experience these operators offer also get excited about online ordering?
Research shows that, in addition to gaining more spending power, Hispanic consumers are buying more products online than ever. According to a study conducted last year by ThinkNow Research, 56% of Hispanic shoppers said they were buying more items digitally than they did a year ago. Fifty-seven percent reported using their mobile phones to make purchases.
Those habits could be difficult to translate to grocery shopping, however. Hispanic supermarkets are sensory experiences — places where people can sample fresh-made tortillas and juices, and watch butchers slice up roasted meats. Grocery shopping for many Hispanic shoppers is a special trip, often made with family members. This isn’t something that can be recreated online.
To some degree, this is a hurdle the entire grocery industry faces. Despite growing interest in e-commerce, the fact remains that a lot of people like to select those apples, peppers and prepared foods themselves
“Shopping for groceries is something much more than a chore — it is an act of love,” Laurie Demeritt, CEO of The Hartman Group, said in a recent statement.
Like many American supermarket chains, Superior Grocers faces an uphill battle to convince shoppers to move online. Profits will most likely remain elusive for some time. But the company is taking a step towards the future, with online grocery sales set to bring in an estimated $100 billion by 2025.
