Dive Brief:
- Technology company NCR announced Wednesday that it has acquired grocery e-commerce provider Freshop.
- The acquisition will allow Freshop to grow faster and fits NCR’s plans to expand its software and services, the two companies’ CEOs said in the announcement. The companies did not disclose the financial terms of the transaction.
- NCR said Freshop’s e-commerce offerings will be a “key component” of its software and services business as it predicts continued shopper demand for click-and-collect.
Dive Insight:
NCR said in the announcement that grocers are looking to take more ownership of their online solutions and that acquiring Freshop gives NCR more growth opportunities in the e-commerce space. The acquisition comes at a time when NCR estimates that “buy-online, pickup-in-store” shopping will grow by 25% per year through 2025, according to the announcement.
Freshop is one of numerous e-commerce providers that have helped independent grocers as they scrambled to set up online shopping services and expand their online offerings during the novel coronavirus pandemic. Founded in 2014 and based in Rochester, New York, the company has grown over the last six years to reach more than 1,900 stores in nine countries.
Freshop was the first e-commerce platform to work with an independent grocer, Wright’s Market in Opelika, Alabama, on the federal government’s launch of an online payment pilot for Supplemental Nutrition Assistance Program (SNAP) participants. In June, the e-commerce company said it had fully integrated online payment options for SNAP recipients.
NCR, which offers point-of-sale technology as well as store management software, said Freshop will add a critical e-commerce service to its suite of offerings. NCR may also utilize Freshop's technology across other non-grocery retail companies it works with.
Even though online grocery sales have plateaued recently, grocery shoppers are still spending billions of dollars more on pickup and delivery orders in recent months than pre-pandemic levels, according to data from Brick Meets Click and Mercatus. In the fall, Mercatus and research firm Incisiv predicted that online grocery will reach $250 billion in five years, with their findings suggesting consumers prefer pickup over delivery.
