Dive Brief:
- Schnucks is launching a Deli Order Ahead feature through the Schnucks Rewards app at 18 locations in Missouri, Illinois and Indiana, according to a press release. The service will allow shoppers to place their deli orders before they leave home.
- A variety of deli offerings will be available through the app, with select stores offering just meat and cheese. Prepared foods will also be available through the Deli Order Ahead app at 14 of the 18 locations.
- The new service is designed for on-the-go shoppers who may not have time to wait in line and need a quick lunch or dinner solution, vice president of marketing Ted Schnuck said in a statement.
Dive Insight:
According to Nielsen, deli departments generated $36.6 billion in sales in 2018 and are a consistent source of store growth for retailers. Convenience, combined with new offerings in prepared foods, has helped grocery store delis stay relevant as more shoppers look for quick, healthy meal solutions, Nielsen said.
Schnucks’ decision to boost its deli with order-ahead could help it compete with some of its closest Midwest rivals. Competitor Kroger allows shoppers to pick up ready-to-eat deli items via online ordering including hot fried chicken and assorted sandwich trays. Albertsons and Walmart also offer select deli items through their online delivery platforms.
In addition to boosting deli sales, Schnucks is focused on driving downloads and increasing usage of the Schnucks Rewards app for Deli Order Ahead through this effort. Schnucks made a big push for its app in March, adding a real-time, in-app shopping list feature and a wellness guide, which provides nutrition information and product details through the app. For grocery stores, mobile apps are an important tool for engaging customers and capturing shopper data to offer personalized experiences.
In other efforts, Schnucks recently launched alcohol delivery in Missouri and Illinois via Instacart. The company is also placing big bets on tech, adopting shelf-scanning robots and tools that can streamline store operations, and is revamping 19 Shop 'n Save stores that it acquired last September.
