After coronavirus boom, grocers race to find fulfillment solutions

Grocery delivery growth may be slowing, but grocers are still betting on it being lucrative long-term. Within the past month, grocers have announced a slew of new deals to build micro-fulfillment centers and/or test out new delivery methods. That's because they are betting that a significant number of people who tried grocery delivery for the first time during the pandemic will stick with it. And, they don't want to be caught flat-footed again when faced with a huge surge in demand.

Latest Stories

  • SEP 03, 2020

    TikTok’s new partnership hints at commerce ambitions

    Earlier this week, the social video app announced a partnership with the commerce platform Teespring. While the details haven't been finalized, the two companies will be working together to create an integration that allows TikTok creators to sell their merchandise on the app. It's a small but important step for TikTok, as it tries to find ways to prove to brands that it's more than just a platform where teens share irreverent videos.

  • AUG 31, 2020

    Modern Retail Talk: Move over e-commerce, here comes ‘headless commerce’

    Interlace Ventures managing partner Joseph Sartre spoke on the most recent episode of our Modern Retail Talk series about what headless commerce is and why he thinks it's going to be the future for online merchants -- especially now. Modern Retail Talk is our video series where we discuss the latest retail news, as well as dive into issues experts in the space are facing.

  • AUG 27, 2020
    big-box retail

    Retailers are racing to turn stores into fulfillment hubs

    As the coronavirus continues to shift more retail spending online, more retailers are looking to remodel stores to double as fulfillment centers for online orders. Best Buy said on its earnings call yesterday that it would be piloting a new ship-from-store model next month, where 250 of its stores would be remodeled as "hubs" in order to ship out more online orders. Other retailers are likely to follow suit, as demand for online shopping will only pick up as the holidays get closer.

  • AUG 18, 2020

    How turning malls into fulfillment centers could reshape towns

    As more shopping moves online, some property owners are looking for new uses for dying malls or former department stores. Last week, the Wall Street Journal reported that Amazon was in talks with Simon Property Partners to turn some former stores previously occupied by JCPenney and Sears into fulfillment centers for the e-commerce giant. But converting stores into warehouses comes with its own set of challenges.

  • AUG 17, 2020

    Premium beverage brands are using DTC strategies to rival legacy players

    National distribution has always been a tough cookie to crack for scrappy, independent CPG brands. Without the distribution methods and supply chain of big brands like Coke and Pepsi, beverage startups have had a hard time scaling beyond health food stores and DTC sales. But the coronavirus has changed the playing field.

  • AUG 14, 2020

    A domino effect: How USPS delays may hurt e-commerce startups

    During the coronavirus pandemic in the U.S., e-commerce has become a lifeline for businesses to stay afloat when many non-essential stores were ordered closed in April and May. Now, changes being made to one of the backbones of the e-commerce landscape -- the United States Postal Service -- threatens to create a huge headache for retail and consumer startups .In mid-July, many businesses started reporting packages were taking longer to get to customers, which coincided with new cost-cutting measures that the USPS could implement. Every e-commerce business, from mom-and-pop shops all the way up to Amazon rely on the USPS in some way, and any changes in service or prices could wreck havoc on small e-commerce businesses.

  • AUG 13, 2020

    How Kroger’s marketplace can help grow its marketing business

    Over the past several years, Kroger has been building out its own Amazon-style flywheel to protect its revenue growth as more grocery shopping moves online. So on Tuesday, it didn't come as much of a surprise when Kroger said it would be launching its own third-party marketplace. The grocer will likely find it challenging to match Amazon's reach online -- but retail analysts still say the marketplace could prove to be a boon if it helps Kroger subsequently grow its marketing business.

  • AUG 07, 2020

    How Goldbelly is positioning itself as the future of in-home gourmet dining

    Goldbelly hit coronavirus gold. With restaurants closed, many iconic establishments have used the delivery platform to have their signature dishes shipped nationwide. But the question remains how long that will last. According to Goldbelly, it has no plans of slowing down anytime soon.

  • AUG 06, 2020

    ‘There’s this incredible uncertainty’: Sellers frustrated by Amazon’s fulfillment service failing to keep up

    After posting record-high sales during its second quarter, Amazon is struggling to maintain enough space in its warehouses for inventory. That's creating headaches for sellers who rely primarily on Amazon's fulfillment service (FBA) to get the majority of their products to customers.

  • JUL 30, 2020

    Why some DTC brands are opting for a pre-sale strategy

    In a way, pre-sales and waitlists are counterculture to today’s “fast delivery” windows, but they can also be a vital tool in building a customer base during uncertain times. For new brands like direct-to-consumer A/C maker July, pre-orders gave them two benefits: the opportunity to make connections and manage the uncertainties, said co-founder

  • JUL 23, 2020

    How Snapchat is wooing more retail advertisers as e-commerce booms

    During Snap's second quarter earnings yesterday, CEO Evan Spiegel called out e-commerce advertising as one of the company's bright spots during the quarter, as consumers are spending more money online during the coronavirus. Snap's revenue overall grew 17% year-over-year, to $454 million. But, even before the pandemic, Snapchat was heavily focused on wooing new e-commerce advertisers, particularly with new ad formats.

  • JUL 22, 2020

    How Instagram is trying to make shopping more visible

    Since launching Instagram Checkout a year and a half ago, which allows customers to buy products from participating retailers' websites, Instagram has made it a priority to get more well-known retailers using the feature. Now, the next step on the app's to-do list is to make shopping more visible on Instagram. That was signaled by the launch of a new Shop tab in Instagram Explore last week. But Instagram still has a ways to go until users think of it as a shopping destination first and foremost.

  • JAN 03, 2021

    Live panel: Six fitness trends brands need to know in 2021

    For brands and advertisers wondering how to approach fitness and wellness consumers in a time of great change, register for this webinar. Healthline Media and Digiday will unpack strategies for meaningful engagements alongside a panel of experts from leading fitness brands, highlighting the six trends marketers need to know in 2021.

Future Leader Awards
Jan 22, 2021

Recognizing the next generation of leaders across media and marketing, fashion, beauty and retail.

Remind Me