Online grocery is clicking at Meijer

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Online grocery is clicking at Meijer

By Gina Acosta - 10/25/2017

Meijer says it is on-pace to process more than 1 million deliveries made from its stores by year-end.

Since launching in Detroit last September, Meijer has expanded the service to more than 200 stores in just 148 days. The store-to-door service is now available to more than 10 million households in Michigan, Indiana, Ohio, Illinois, Wisconsin, and Kentucky where Shipt shoppers hand-pick items from local Meijer stores offering home delivery. So far, more than 85,000 cases of water, 1 million eggs and 1.5 million pounds of bananas have been brought right to shoppers' doors.

"As e-commerce continues to change the way people shop, we are proud to bring home delivery to the Midwest and innovate the way people shop our stores," Meijer President & CEO Rick Keyes said. "Our goal was to quickly bring a high level of convenience to as many customers as possible, so surpassing a half million deliveries is a great start as we continue enhancing this personalized customer-first experience."

The online grocery business, at roughly $21 billion, is estimated to reach as much as $100 billion in annual sales by 2025, according to a January report from the Food Marketing Institute and Nielsen. That figure is based on a compounded growth rate of 20%.

Keyes said that one reason why the service has been so popular is the retailer's ability to combine a seamless digital shopping solution with the best of what its brick and mortar retail model stores offer. Because most Meijer stores are open 24-hours-a-day, customers can choose delivery times most convenient for them, which allows those with third shift jobs or challenging lifestyles the flexibility to shop and receive orders very early in the morning or late at night.

Meijer has also provided home delivery service members the ability to earn mPerks Rewards that can be redeemed in store, as well as offering sales on hundreds of items each week found through the Shipt app.

"Having the unrivaled selection of fresh produce, grocery and general merchandise available under one roof, not to mention the ability to earn rewards for your orders, has proven to be a differentiator for Meijercustomers," said Bill Smith, Founder and CEO for Shipt, which fulfills the deliveries for Meijer customers.

Meijer customers can sign up for the service for $99 per year. Unlimited deliveries are free for orders over $35; a flat $7 delivery fee is added to any orders under $35.