Dive Brief:
- Hy-Vee announced earlier this week that it has launched two ship-to-home services that deliver to consumers throughout the U.S.
- ShopPetShip.com offers a wide range of pet products and has subscription services that offer automated shipping with discounted pricing. Hy-VeeDeals.com, the grocer’s current site for weekly ads, coupons and deals, now offers shipping of bulk products like snacks and household cleaning products.
- The announcement follows Hy-Vee’s launch of a telehealth service and news of a rapid expansion to new states as the grocer looks to grow beyond the Midwest.
Dive Insight:
Hy-Vee isn’t letting the fact that it’s a regional grocer stand in the way of reaching shoppers nationwide through new digital services.
Petship, which appears to be chasing after the same pet-pampering trends that have elevated brands like Chewy, sells thousands of products ranging from pet food to toys and medication. The site offers Hy-Vee’s first subscription buying option and free delivery on orders of $49 or more.
The American Pet Products Association estimates that consumers will spend nearly $110 billion on their pets this year, and around 30% of pet product sales happen online, according to Packaged Facts.
HyVeeDeals.com, which the grocer has heavily promoted as it tries to boost its low-price image, offers regularly rotating product deals and coupons, and now shoppers can find bulk packs of cereal, diapers, allergy medicine, laundry detergent and other household items. The site offers 10% off first orders and free shipping on orders over $49.
Hy-Vee is moving into two high-growth channels with these launches. But pulling shoppers away from the likes of Amazon and Chewy will likely prove challenging, as will driving awareness beyond the eight states where the company has stores.
Of course, those eight states are soon going to become 12, according to a recent report in the Des Moines Register, as Hy-Vee moves east into Indiana, Kentucky, Tennessee and Alabama. In a leaked video, CEO Randy Edeker said the grocer is quickly “going to go from a regional company to a national company.”
Hy-Vee clearly sees ship-to-home as an opportunity to capture additional sales and spread its services to more regions of the country. Last week, Hy-Vee launched a nationwide telehealth and pharmacy delivery service called RedBox Rx. In a recent interview, Edeker said the company also plans to eventually offer a ship-to-home service through its HealthMarket brand.
The grocer recently placed a home gym showroom inside a new store in Des Moines, Iowa, that offers home shipping. Edeker also noted Hy-Vee has looked into creating in-store showrooms for household appliances like washers, dryers and refrigerators that can ship to customers’ homes next-day.
“I think there are a lot of things that we can carry that don't interrupt the flow [in stores], don't take massive space, but do create more of a destination,” he said.
