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Aldi enters grocery delivery in partnership with Instacart
August 14, 2017
Source: Reuters, FMI daily Lead
A report from the Food Marketing Institute and market research firm Nielsen in January this year estimated online grocery spending during 2016-2025 to grow from 4.3 percent of the total U.S. food and beverage sales to as much as 20 percent, or more than $100 billion. Last year, online grocery sales were about $20.5 billion. Aldi's move also comes at a time when grocery chains in the country are caught in a price war. German rival Lidl has started opening stores in the country and online retailer Amazon.com Inc said in June it will acquire the grocery chain Whole Foods Market Inc To better position itself, Aldi said in June it would invest $3.4 billion to expand its U.S. store base from more than 1,600 currently to 2,500 by 2022 (TOP 50). In May, Aldi Chief Executive Jason Hart told Reuters the chain intended to have the lowest prices and would focus on adding in-house brands to win over price-sensitive customers. The partnership with Instacart will allow shoppers to order goods from Aldi stores using Instacart's website and app. Instacart, which charges a delivery fee, does not hold inventory but picks up orders from the store and delivers them to a customer's home in as little as one hour. Other U.S. retailers who have tied up with Instacart include Target Corp (TGT.N), Whole Foods Market Inc and Costco Wholesale Corp COST.N.
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