Dive Brief:
- SpartanNash announced Tuesday it will waive fees for pickup orders and offer half-off delivery for qualifying orders during through the rest of the year via its Fast Lane e-commerce program.
- Pickup orders must be over $50 and delivery orders over $100 to qualify for the discounts. Current members of Fast Lane and those who sign up for the program in November and December will have their membership extended by eight weeks as part of the promotion.
- SpartanNash’s promotion comes as grocers seek to enroll customers in online subscription programs. Fast Lane, which normally offers free pickup for members who pay the $49 annual fee, is available at 69 SpartanNash-owned stores across Michigan, Minnesota, Nebraska, Wisconsin and the Dakotas.
Dive Insight:
SpartanNash aims to reach the many consumers who will be doing their grocery shopping online during the holidays. Demand in the channel remains high, and with COVID-19 cases spiking across the country it’s likely that demand will increase in the coming weeks.
The promotion promises to bring more shoppers into the company’s Fast Lane paid membership tier by essentially offering a free trial period. Established in 2017, the program offers standard fee-based pickup and delivery as well as a subscription that includes free pickup for $49 a year or $17 a month.
Paid memberships can lock in loyalty as competition for online shopping intensifies. By adding eight additional weeks to the membership period, SpartanNash is keeping its current member base happy while also dangling an added enticement for new shoppers.
COVID-19 cases in the U.S. have recently accelerated, reaching more than 100,000 per day and rising rapidly in the Upper Midwest. Grocers face another round of stock-up shopping as health and safety restrictions loom and have bolstered their online ordering platforms and supply chains as a result. The hope is to prevent a repeat of what happened in the spring, when shelves were bare and shoppers had difficulty securing delivery and pickup times.
SpartanNash will have to contend with other retailers like Walmart that already off free pickup, as well as those like Meijer that are also waiving their e-commerce fees during the holidays. SpartanNash reports its third-quarter earnings on after the stock market closes Wednesday.
