Dive Brief:
- Kroger has quietly renamed ClickList, its click-and-collect service that’s now available at more than 1,000 stores. The platform is now known as Grocery Pickup.
- On its website, the grocer says it made the move in order to provide clarity for its shoppers. Kroger rolled out store pickup in 2014 — after acquiring Harris Teeter, whose “Express Lane” service was a precursor to ClickList.
- "Moving forward, we are being more descriptive of the service to help our customers better understand our offerings: You will now see Pickup, Delivery and Ship as the methods to receive your grocery orders," the company notes on its website.
Dive Insight:
ClickList has been the tip of Kroger’s online grocery spear. During the last four years, the service has become the all-important first mover in markets across the country, securing online-curious shoppers while also building loyalty with longtime customers who value the added convenience.
But now Kroger has a more varied menu of e-commerce offerings, including two home delivery services, and understandably wants to make sure customers can differentiate among them.
Kroger recently expanded home delivery through Instacart by 50%, bringing the service to more than half of its stores by the end of next month. The company also kicked off Ship, a direct delivery program that’s seen as an answer to competitors Amazon and Walmart.
There’s a case to be made for Kroger naming its click-and-collect service something more memorable than Grocery Pickup, particularly as competitors continue to crowd in. Walmart has expanded store pickup to more than 2,000 stores, while Whole Foods launched its own service aimed at Amazon Prime members this summer. Target will offer click-and-collect at 1,000 stores by the end of this year, and Albertsons will feature the service at 500 locations.
But there’s something to be said for the simplicity of the name. And if Kroger can deliver a great experience for consumers, it doesn’t really matter what the company calls it.
On a side note: Kroger charges $5 for each grocery pickup order, but that may need to change. Walmart’s service is free and Whole Foods' is free for Prime members who order at least $35 of goods. As the competition continues to heat up, grocers will charge lower fees or eliminate them altogether in order to gain an edge.
Of course, doing so would cut into online profitability. But, as Kroger knows well, retaining existing customers and bringing in new ones is the ultimate goal.