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Logistics & Fulfilment

Aldi to roll out home delivery in three US cities

Aldi US has announced a partnership with Instacart, the technology-driven grocery delivery service.

“Our partnership with Instacart is another example of Aldi expanding our commitment to customer convenience and value,” said Jason Hart, CEO of Aldi.

The new collaboration paves the way for consumers to access high-quality groceries at low prices, which the discount supermarket is known for.

“We know customers are looking for new ways to save time and money. Instacart provides easy access to our low prices at the click of a button,” said Hart.

The grocery retailer is set to launch the online delivery service this month in Atlanta, Dallas and Los Angeles, with plans for future expansion.

Shoppers can fill their virtual carts by visiting or downloading the Instacart app.

At the checkout, they can choose a delivery window that works best with their schedule, anywhere from an hour or up to a week later. Instacart’s personal shoppers do the rest.

“From their unique assortment of goods to their low price commitment and high standards, the Aldi and Instacart partnership aligns on delivering excellent value and convenience to consumers,” said Apoorva Mehta, CEO of Instacart.

“There’s a clear demand for quality grocery delivery, and Aldi and Instacart are working together to meet it.”

To celebrate the partnership, Aldi US and Instacart are offering customers US$20 off their first order through September 30.

But the online grocery delivery space is not without challenges, said Michelle Grant, head of retailing at Euromonitor International.

“Online grocery, especially the purchase of food and beverage products, faces an uphill battle in the US. Consumers tend to prefer the store experience, especially to inspect the fresh products,” she said.

“They also hesitate to pay for delivery and do not like waiting at home for the delivery. Another issue is ‘out of stocks’ that make for a less than compelling customer experience. As a result, grocery products have been the last categories to move online but the race is on to crack this market.”

Grant said Americans are now growing more comfortable with buying online, which has resulted in higher food and drink sales, which have grown by 57 per cent over the past five years. Euromonitor International expects to see 60 per cent growth over the next five years.

According to Euromonitor International’s Global Consumer Trends Survey, 25 per cent of Americans shopped for groceries online at least once in 2013. The share increased to 38 per cent in 2016.

Grant added that younger consumers are likely to drive online grocery shopping in the years ahead, with twice as many Americans aged 20 to 29 shopping for groceries daily or weekly today compared to three years ago.

A version of this story first appeared on sister site, Inside FMCG.

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