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    Main | Amazon and Alibaba Compete for Dominance in Southeast Asia »
    Tuesday
    Feb072017

    BBC News Examines Sainsbury's Take on Its' Same-Day Grocery Delivery

    When same-day groceries becomes a service that shoppers begin to find attractive, retailers begin to take notice and try to find how to get it done. In the past, the barrier proved to be technology, but not any longer. The advancement in ways to utilize technology to maximize profit from volume is what is making the difference. Sainsbury is one of London's largest grocery chain retailers that has initiated same-day grocery delivery in 30 stores, anticipating positive results.

    BBC News discussed with Sainsbury and examined the new pilot program. In the discussion, Sainsbury mentioned the driver behind same-day groceries stemmed from the demand and success of its' next-day delivery. When it began to test Same-Day Delivery, customer sales indicated that they wanted the service. Sainsbury stated its' focus is on giving its' customers what they want. Essentially, if their customers wanted it, they were going to give it a try.

    At one of Sainsbury's stores, BBC examined with the processes behind same-day grocery delivery from beginning to end that impact the success of it. A same-day grocery employee there talked about the importance of the picking aspect of it. She would have to go around the store and pick all of the items for the online order and put them in a storage bin for delivery later that day. This part of the service is time consuming. Also, when it comes to fresh fruits and vegetables, the employee couldn't just pick anything. She had to make sure they were ripe, not rotten. This is just one of the aspects of same-day grocery delivery that isn't seen daily that customers don't see, but retailers are fully aware of.

    After the items were picked and stored for the day, the time came when the orders had to be delivered. The store had 45 orders to complete later that afternoon, and BBC went with Sainsbury to deliver them. At one of the homes, BBC spoke with a customer about the service and their opinion of it. The customer stated he used it before and he liked it. The convenience of same-day grocery service was the core driver for him, and for 5 pounds, it was worth not having to go himself.

    Three out of the big four grocery retailers in the London area, including Sainsbury, have all implemented a model of the service. Tesco has its' "click-and-collect" service in London and the South-East in over 300 locations. Morrisons has partnered with Amazon Fresh, which Amazon continues to expand beyond the US. The e-retailer has Amazon Fresh in several major US cities and is probably in pursuit of a high level of growth in London. Grocery retailer Asda is the exception, being the only one that currently has not decided to engage in same-day grocery.

    The same has occurred in the US in which some grocery retailers have jumped into same-day delivery, such as Whole Foods and Wal-Mart. Yet, others have not. Either way, customer demand is driving the quest for more convenience wherever they can get it. For grocery stores seeking to roll-out a same-day grocery program of their own, a Same-Day Courier like A-1 Express is a viable option to optimally fulfill online orders in no time. The Chicago Courier has the delivery expertise nationwide that retailers can take advantage of and start literally meeting their customers right where they are.

    Reference: 1.25.17, BBC News, Why same-day online food shopping is the next big thing

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