Enemies of e-commerce heirs, beware—the Chamber of Online Grocery has been opened! And as such, there isn’t a retailer in the country that is putting itself at the mercy of the basilisk and backing away from the chance to expand operations, services, and partners to include grocery delivery in all of its glory. Well, that’s not exactly true…Bloomberg reported that Trader Joe’s is ceasing its online grocery services in New York City, one of the biggest markets for online shopping, after ten years of offering its program.
“Instead of passing along unsustainable cost increases to our customers, removing delivery will allow us to continue offering outstanding values—quality products for great everyday prices, and to make better use of valuable space in our stores,” said Kenya Friend-Daniel, National Director, Public Relations, according to Business Insider. “This was not a decision made lightly. We value our customers and all that they do to come shop with us.”
Many are speculating that Trader Joe’s is also banking on its cult following to ensure that its brick-and-mortar business stays afloat despite the retail trend to go digital.
Business Insider reports that U.S. online grocery sales are “outpacing the overall grocery market,” with sales expected to hit $60 billion in 2023. And there isn’t a major or minor grocery player that hasn’t stocked up on online services in the last couple of years, whether that be launching their own programs or teaming up with services like Instacart. Amazon has opened the floodgates, and every grocer from global giants like Walmart to local stars like Raley's (Sacramento represent!) have signed on to the grocery innerweb.
With Trader Joe’s ceasing online deliveries in New York on March 1, will it open itself up to an attack from the brick-and-mortar basilisk or will it prove to have a strategy that will win out in the end? Deli Market News will continue to keep you up-to-date.