Dive Brief:
- The Giant Company has done away with order minimums and the pickup fee for pickup orders through its Giant Direct and Martin's Direct services, the Ahold Delhaize banner announced on Thursday.
- The change, which went into effect on Thursday, positions the company as providing "greater convenience and value," Matt Simon, vice president of brand experience, said in the announcement.
- The Giant Company said the move is its latest effort to boost its own e-commerce services.
Dive Insight:
The Giant Company is among several grocers looking to ramp up their own branded shopping experiences, with many turning to lower or cut fees and order minimums to attract shoppers.
Previously, the grocery company charged people a $2.95 fee and required orders to total at least $35 for pickup, PennLive noted.
For SNAP recipients, the change furthers lower financial barriers to e-commerce. Last summer, The Giant Company started accepting SNAP benefits for online payment and waived minimum order values, but kept fees for pickup and delivery orders for people using their Pennsylvania EBT Access cards.
The Ahold Delhaize banner has invested in pickup, with the service offered at more than 175 locations, as it ramps up its own e-commerce services.
A few weeks ago, The Giant Company launched Ship2Me on its Giant and Martin's e-commerce platforms. The online marketplace, which originally debuted at sister banner Giant Food, allows people to buy pet supplies, health and beauty products, home decor, snacks, candy and other household items for ship to home alongside grocery and household items for delivery or pickup.
Late last year, The Giant Company opened a 124,000-square-foot e-commerce fulfillment center in Philadelphia to ramp up delivery service for customers in and surrounding the city, along with in southern New Jersey.
More than 90% of customers across its footprint have access to online grocery ordering and delivery services, the company noted. Along with its in-house e-commerce services, The Giant Company also works with Instacart, with which it recently launched convenience delivery in as fast as 30 minutes for its Giant and Martin's banners.
The Giant Company's pickup change reinforces the popularity of the service. Amid accelerated online shopping adoption during the pandemic, pickup has consistently topped shopper preference for grocery e-commerce fulfillment. In January, total online grocery sales were down 8% from a year-ago, and the pickup channel posted gains for the month while delivery and ship-to-home sales nosedived, according to Brick Meets Click and Mercatus.
The change is also the latest example of how grocers are experimenting with fees and minimums. In September, Giant Food slashed its fees and order minimums for delivery orders. Last spring, H-E-B got rid of its pickup fee for orders of $35 or more and lowered it for orders under $35. Similarly, Kroger has tinkered with its e-commerce fees and has free pickup for orders of $35 or more.
