March 23, 2022
Giant Food last week eliminated the $2.95 fee customers were charged to pick up their online grocery orders at 159 of the supermarket chain’s stores.
The Ahold Delhaize division aims to fulfill orders within four hours of being placed online. Giant saw an online boom in 2021 with over three million orders fulfilled.
“E-commerce demand continues to grow as more customers discover the time-saving benefits of shopping online at Giant,” said Gregg Dorazio, the chain’s e-commerce director, in a statement. “Free pickup on all orders makes this personalized service even more accessible. What could be nicer than letting our trained staff do the shopping for you? We guarantee 100 percent satisfaction. Our customers can rely on us to select the freshest groceries.”
Giant foods in September eliminated Minimum dollar requirements for pickup orders.
The chain also ended fees for Tuesday-Thursday deliveries and halved its delivery fee to $3.95 for Friday-Monday orders. Minimum order requirements have been reduced from $60 to $30.
Mr Dorazio said at the time: “We are at the forefront of this growing space and believe that lower delivery fees and minimum order quantities will make these convenient services even more accessible to consumers.”
Accessibility also extends to Giant’s Supplemental Nutrition Assistance Program (SNAP) customers, who can place online orders for delivery or pickup and pay with their EBT (Electronic Benefits Transfer) cards.
Giant is also part of the growing number of retailers who are turning to third-party marketplace sellers to expand their product selection and reach.
The chain started launched the Ship2Me marketplace in December to offer a wide variety of products not found in its stores. These include health and beauty, home decor, kitchen and dining, outdoor, pets, premium pantry and seasonal items. Ship2Me orders have no minimum order size and ground shipping is free. Customers who are members of Giant Flexible Rewards earn points on Ship2Me purchases that can be redeemed for savings on groceries or gas offered by the chain.
“We’re always looking for ways to give our customers time back and make our services more convenient and accessible,” said Mr. Dorazio. “The launch of Ship2Me allows Giant to expand its range within traditional and non-traditional grocery categories, making it the most seamless one-stop shop for our customers.”
DISCUSSION QUESTIONS: Will Giant Food’s strategy of lowering minimum order quantities and fulfillment fees help the chain significantly grow its online business? What impact will the Ship2Me marketplace have on Giant’s business?
“It’s good business for customers, but how do you compensate for the loss of sales in the long term?”
“Customers have always been reluctant to pay delivery fees for online orders. Getting rid of them will absolutely boost online business. Time will tell if it’s worth it.”
“Perhaps Giant can bury the additional costs in inflationary price increases. Maybe not.”