Lucky's Market launches delivery with Shipt

Dive Brief:

Organic and natural foods store Lucky’s Market is partnering with Shipt to launch a delivery program in 18 metro areas in six states including Colorado, Florida, Georgia, Iowa, Missouri and Montana, the company noted in a release. The service will be available to additional Lucky’s Market locations in the Midwest and the grocer’s new stores in early 2019.
This partnership gives 10 million households access to Lucky’s Market products, with groceries that can be delivered within an hour. Customers can sign for up a membership to access the delivery program, called Lucky’s Market Delivers.
Membership regularly costs $99, but can be purchased for $49 for a limited time. Customers can also apply their Lucky’s Rewards to online orders.

Dive Insight:

Shoppers want the convenience of grocery shopping. Grocers with large footprints, like Amazon’s Whole Foods, Walmart and Kroger, are gaining more market share — while Lucky’s is trying to hold its ground as it expands.

The store's delivery program with Shipt gives it the ability to cater to consumer demands. According to the Food Marketing Institute, online grocery is expected to capture 20% of the grocery retail landscape by 2025. As delivery and pickup fees decline, that number will continue to grow. Another report by FMI and Nielsen found that e-commerce sales will reach $100 billion by 2022. As this demand rises, it’s essential that smaller grocers like Lucky’s get up to speed with their e-commerce services.

Only a few grocers with similar footprints to Lucky’s have rolled out grocery delivery with Instacart or Shipt. Nine upstate New York locations of Tops Friendly Market launched grocery delivery in June through a partnership with Instacart. The small chain debuted grocery pickup early last month.

As Lucky’s continues to expand its footprint, it is wise to also expand its e-commerce presence. This is especially true in the Florida market, which will see 16 new Lucky's stores in the chain's plan to nearly double its store count by April 2020. Florida’s bustling grocery market makes this sort of expansion a challenge for stores like Lucky’s, but its grocery delivery program will set it apart from its competitors.