Curbside-only grocers without public storefronts are emerging to suit consumer demand for convenience without the cost and inefficiencies of maintaining a supermarket.
In an interview, JackBe CEO and co-founder Alex Ruhter outlined how the concept may promote eGrocery loyalty.
“In the first month since we’ve opened, 50% — half — of the people that have come and tried our facility have come back for more than one order,” Ruhter said. “And when you look at that trend across other areas in the food delivery kind of grocery industry, I believe we’re trending higher than what would typically be the average in that area.”
This sample may be biased since first-month testers may be more receptive. Still, pickup is becoming more popular.
Pick-up
The “2023 Global Digital Shopping Index” found that eCommerce sectors are increasing significantly. The survey revealed that nearly one-third of U.S. online shoppers—16 million people—used curbside or buy online, pick up in store (BOPIS) channels, a 37% rise from the year before.
“As it stands right now if you place an online order, really for anything whether it’s Amazon or groceries, you are dealing with having to schedule your life around getting those things,” Ruhter said, arguing that the need to block out an hour-plus-long time slot runs counter to consumers’ expectation of on-demand convenience.
The delayed uptake of online groceries suggests a lot of friction. “Changes in Grocery Shopping Habits and Perception,” a December poll of over 2,400 U.S. consumers, revealed that 45% shop for groceries online at least sometimes. Only 7% of grocery consumers do so all the time, compared to 54% who shop in shops.
Report: The Gender Divide Edition, which surveyed over 2,600 U.S. customers in October, found that 45% of men and 36% of women buy groceries online for curbside pickup, higher than any other digital grocery channel.
Produce Dilemma
Ruhter observed that consumers’ irritation with undesirable substitutes and skepticism of digital channels for buying fresh produce are additional prevalent issues with main online shopping alternatives. The eGrocer’s inventory-tracking eliminates replacements, and Ruhter said shop staff will let consumers examine their fruit before loading it into their car.
According to “The Changes in Grocery Shopping Habits and Perceptions,” people still buy fruits and vegetables in supermarkets. 53% of customers buy most of their fresh produce in stores, while 44% buy more than half of their groceries in stores.
Giants Against
Ruhter said conventional retailers shouldn’t worry since curbside-only players like JackBe have a smaller assortment and address distinct consumer needs.
However, if customers are buying food from the curbside grocer many times a month, those occasions are coming from somewhere—not it’s like they’re dining a different meal every day.
“There will always be a market for people that need to go in the store, and they want to find specific items,” Ruhter said. “What we’re attempting to do is not replace grocery stores. What we’re trying to do is make it easier for families to get regular grocery needs at home so that they can have a dinner — have a meal — on the table on a given evening.”
