Amazon and Walmart have been battling for supremacy in the growing online grocery market, but traditional supermarket chain Kroger is growing too.
According to Kroger's fiscal Q1 2018 earnings report, released last week, the company's digital sales grew 66% over the prior quarter. Credit was given to ClickList, its buy online, curbside pickup program that's available at Kroger and regional subsidiaries like Dillons, Fred Meyer and Harris Teeter.
Omnichannel shoppers are more valuable than single-channel shoppers. “When a customer engages with us digitally, we get a higher share of their total household spend. And what we find is the customer still comes into the store, but they come in to it based on when they want to,” Kroger CEO Rodney McMullen said during the company's earnings call.
Kroger's current goal is to reach 75% of its customers with ClickList locations, home delivery through Instacart and other third-parties and ship-to-home capabilities.
Most consumers still prefer to buy groceries in-store. They also don't like paying for delivery, which is why the so-called click-and-collect model stands to gain more traction in the US. In a May 2018 Morning Consult survey, 51% of US consumers said they wouldn't pay extra for grocery delivery, though 29% would pay $1 to $5.
In an April 2018 survey by customer experience firm Market Force Information, there were nearly equal amounts of US internet users who had bought groceries online for delivery and curbside pickup in the past 90 days (10% vs. 9%). Consumers ages 35 to 44 were the biggest users of click-and-collect services (13%), followed closely by those 25 to 34 (12%). Nearly 15% of respondents had used click and collect in 2018, a roughly 67% increase over last year.