Dive Brief:
- Pennsylvania-based Weis Markets Inc., which operates 206 stores in seven states, plans to roll out delivery next week in 11 markets via Shipt’s same-day service.
- Home delivery with Shipt will provide another option for Weis customers, expanding Weis 2 Go click-and-collect online grocery service, now available at about 90 stores, according to Supermarket News.
- In March, Shipt announced it was becoming a delivery option for several regional grocers across the country — including Weis Markets, Price Chopper, Save Mart and The Brookshire Grocery Company — through a partnership with digital solutions company Mercatus.
Dive Insight:
As competition in the industry intensifies on the heels of Amazon’s entry with its Whole Foods acquisition, as well as the expansion of Lidl and Aldi and enhancements made by Dollar General, regional grocers are perhaps the most vulnerable. Some smaller chains — like Tops Markets and Southeastern Grocers — have already succumbed.
But the race to meet consumers’ high-demand convenience needs is not confined to national players, as indicated by Shipt’s rollout at a handful of regional stores. In this environment, smaller grocers with the best chance at survival will be the ones that keep pace with the technologies and services offered by the big players — including delivery and curbside pickup — while simultaneously promoting their differentiators — including service and experiences.
Earlier this year, Patty Lovera, assistant director of Food and Water Watch, told The Washington Post that midsize grocers can play up their advantages, such as being more likely to stock foods from small farmers and producers. This ability also seems to be benefiting independents lately.
Weis is pushing hard to keep pace with the rapidly escalating competition. It continues to expand its online ordering with curbside pickup service, it recently updated its preferred shopper program, and it is expanding its beer-wine café concept to 62 stores throughout Pennsylvania. The café sells 550 varieties of domestic, imported and craft beer, including a local beer section, and imported, domestic and Pennsylvania wines. This latter move could be the most critical to Weis’ success as we barrel toward a “differentiate or die” era in retail.
Weis Markets has also purchased dozens of Food Lion stores and a handful of Mars Super Markets locations — taking a page from the playbook of larger competitors and padding its bottom line.
Still, are these initiatives enough against vastly-resourced powerhouses like Amazon, Walmart and Kroger? The company’s recently released Q2 results indicate that sales — and net income — are both up, so perhaps.
During the past year, online grocery shoppers increased online from 28% to 46% of their total grocery spend, according to Brick Meets Click. The online grocery industry is expected to be a $100 billion business by 2022, with projections that as many as 70% of shoppers will buy groceries online. By expanding delivery through Shipt, Weis is further solidifying its position that it belongs in the race.
