Channel share will double from 1.6% to 3.5% in that timeframe, which is still relatively low compared with markets in Asia. This growth is being driven by an increase in grocery-related omnichannel offerings, like pickup points in-store, drive-thrus and kiosks, plus the rise of meal kits and third-party delivery services like Instacart and Shipt.
By the end of 2018, 80% of the US population will have access to Instacart, according to CEO Apoorva Mehta. "There has been 135% year-over-year growth at Instacart. One in five families will shop for online groceries in the next five years. That's why we are at a tipping point for grocery," he said at Groceryshop.
Kroger has invested in all of the above. In June 2018, Kroger acquired meal kit company Home Chef. The supermarket has also piloted self-driving grocery delivery vehicles, offers curbside pickup and delivery to roughly 90% of its customers and plans to be at 100% next year—a goal that will likely get a boost from its May partnership with Ocado. "Ocado is really an opportunity for us to accelerate and improve the quality of the customer experience when it comes to delivery," said Yael Cosset, chief digital officer of Kroger, in a keynote at Groceryshop.