Dive Brief:
- Ahold Delhaize USA banners Food Lion and The Giant Company have deployed Instacart’s FoodStorm order-management system, the grocery company announced Wednesday.
- The software allows shoppers to place requests online, in-store or by phone for made-to-order goods like fresh bakery platters, balloons, floral arrangements, and customized deli meat and cheese trays.
- The arrangement reflects ongoing efforts by Ahold Delhaize and Instacart to reposition themselves as the grocery e-commerce sector evolves.
Dive Insight:
Ahold Delhaize’s decision to deepen its ties with Instacart reflects a broader quest by the Dutch grocery company to energize its performance by investing in omnichannel capabilities.
Instacart, meanwhile, has been working aggressively in recent years to diversify its business beyond the legacy delivery and pickup services that have long served as its core, with a particular focus on helping retailers automate core functions such as order intake and inventory management.
FoodStorm, which Instacart acquired in 2021 and offers to grocers as part of the Connected Stores package of omnichannel technologies it rolled out the following year, is a central part of that initiative. The platform streamlines the ordering process for items that are typically prepared in-store while also guiding associates through fulfillment procedures.
FoodStorm allows stores to streamline their production processes for catered items and manage menus across departments, Ahold Delhaize said. These capabilities help stores expand their offerings, encourage repeat orders and boost sales, Ahold Delhaize added.
In addition, FoodStorm generates production logs, inventory metrics and other data that stores can use to generate more accurate forecasts, Ahold Delhaize noted.
Ahold Delhaize also said that the FoodStorm system adds convenience for customers by letting them view their purchase history — a key element of the omnichannel shopping experience.
The grocery company added that its banners plan to consider whether to use FoodStorm to support additional functions such as pre-ordering for pickup or delivery in the future.
Ahold Delhaize has worked with Instacart for years to provide pickup and delivery services from its supermarkets. Instacart also provides 30-minute convenience delivery through arrangements with all of Ahold Delhaize’s U.S. chains.
Ahold Delhaize said in Monday’s announcement that Martin’s stores, which sit under The Giant Food umbrella, have also started using the FoodStorm system. The grocer did not indicate if its other U.S. banners — Hannaford, Giant Food and Stop & Shop — will adopt the technology.
