Dive Brief:
- Shipt has partnered with Midwest grocer Fresh Thyme Farmers Market to offer same-day grocery delivery to 10 million households in 30 metro areas, according to a company press release.
- In addition, customers in Detroit, Lansing, Grand Rapids and Kalamazoo, Michigan, will be able to get same-day delivery of beer and wine from Fresh Thyme.
- To promote the new partnership, Shipt will offer new customers who sign up between July 7 and July 11 a discounted annual membership at $49 instead of $99. Shoppers can also now order from Shipt using a pay-per-delivery system.
Dive Insight:
Shipt’s expansion with Fresh Thyme is a notable addition as the delivery company looks to gain ground on Instacart and tap into the specialty grocery space. Shipt now counts national retailers including Kroger, Safeway and parent company Target among its partners, as well as Midwestern retailer Meijer.
The expansion with Fresh Thyme comes at an interesting time for the Midwest. In February, online grocer Peapod said it would shut down its dwindling operations in the region, which cut off about 50,000 customers who utilized the service.
Meanwhile, Target, which owns Shipt and is headquartered in Minneapolis, is aggressively expanding fresh grocery pickup nationwide. AmazonFresh also expanded to Minneapolis and Indianapolis last summer, giving shoppers in the region even more delivery options.
Fresh Thyme first launched grocery delivery with Instacart in 2018. There is no indication as to whether or not its expansion with Shipt will affect Instacart’s role with the grocer, but the surge in demand for online grocery during COVID-19 has affected Instacart’s abilities to fulfill orders for Fresh Thyme customers in a timely manner.
Last year was a rocky one for Fresh Thyme, with several stores closing due to low sales and underperformance. CEO Chris Sherrell also stepped down suddenly in November following store closures after a period of aggressive expansion.
Since then, the chain, under the leadership of CEO Gerald Melville, has been focused on adding new products, launching a new ad campaign and dealing with the repercussions of COVID-19.
