Millennials are the big retail spenders this year

Global e-commerce spending will be led by millennials this year and they prefer online versus in-store when it comes to shopping.

Those are top findings from an ESW Global Voice survey that revealed more than 25% of millennials will spend more online this year when it comes to health, beauty, apparel, consumer electronics and luxury items.

The study also revealed nearly 73% of millennial shoppers plan to spend the same or more online in 2023, which will make this cohort the leader in global e-commerce spending this year, according to a press release on the findings..

“The millennial consumer remains fully committed to their preference for online shopping over physical retail,” Patrick Bousquet-Chavanne, president and CEO, ESW Americas, said in the release. “Millennials’ spending power has grown to $2.5 trillion, and they are not yet even in their prime earning years. They are spending more online than in-store across several categories, and these results indicate that brands must continue to evolve, improve, and optimize their e-commerce to attract and retain this increasingly powerful demographic.”

The survey’s polled more than 16,000 respondents across 16 countries comprised international shoppers across all demographics.

Additional findings include:

  • Nearly 50% more millennials will increase their online spending for health and beauty products compared to Gen Z, and 42% more than Gen X and Baby Boomers.
  • 27% of millennials will spend more for luxury goods online in 2023, compared to 20% of Gen Z, 22% of Gen X, and 21% of Baby Boomers.
  • 77% more millennials will increase their online spending for apparel and footwear versus Baby Boomers.
  • 25% of millennials will spend more for consumer electronics, such as phones, games and software, compared to 19% of Gen Z and Gen X respondents, and just 13% of Baby Boomers.

See the full report of ESW: https://esw.com/wp-content/uploads/2022/01/global_voices_2022.pdf

Original Article: https://www.retailcustomerexperience.com/news/millennials-are-the-big-retail-spenders-this-year/

Sustainability continues to influence Millennials and Gen Zs’ online shopping

Proving how sustainability plays in Millennials and Gen Zs’ shopping is Zalora’s Southeast Asia Trender Report 2022

Sustainability in fashion is more than just a trend. Consumers demand it. Thanks to modern technology, shoppers now get more information about every piece they purchase with just a click. The consumers of tomorrow—Millennials and Gen Zs—want wearable items that support their causes, which pushed brands not just to make beautiful clothes and accessories, but something that has more substance in their style. 

Proving how sustainability plays in Millennials and Gen Zs’ shopping is Zalora’s Southeast Asia Trender Report 2022. According to the lifestyle e-commerce platform, shoppers belonging to those age demographic “are prioritizing sustainability in their purchasing decisions.” 

“Both Zalora’s Earth Edit and pre-loved segments saw substantial growth year-on-year,” the e-commerce platform states. “Total sales for Earth Edit, which focuses on the use of sustainable materials, increased by 152 percent from 2020 to 2021 and continued to have double-digit growth as of Q3 in 2022. Brands have reacted to this trend by expanding their product offerings on Zalora.”

Its pre-loved segment, although still very small, also saw a sharp growth of 70 percent from 2021 to 2022, led by Millennials and Gen Zs who will continue to drive the momentum for circular fashion, as per Zalora. 

“As a push towards carbon-neutral continues to underscore fashion and e-commerce, brands can stand to gain market share by introducing more sustainable products while reviewing their supply chains,” Zalora added.

Its report also mentioned how Gen Zs spend most on sports-related products (29 percent), followed by apparel (25 percent). Both Millennials and Gen Zs lean more toward purchasing sports lifestyle shoes and sports performance shoes. Meanwhile, consumers of all ages are also adding to cart sports electronics, giving it a 15 percent growth from 2021 to 2022. Zalora concludes that this reflects consumers prioritizing health and wellness in our pandemic-new normal milieu.

“As for the biggest spenders of wellness products in Southeast Asia, Zalora’s data shows they come from Indonesia and the Philippines,” it says. “Across the region, adults above 40 spent the most, followed by Millennials aged 26 to 30.”

The Trender Report 2022 is based on a comprehensive analysis powered by Zalora’s retail intelligence and data analytics solution, Data by Global Fashion Group, to forecast consumer megatrends and purchasing patterns that will inform and shape retail strategies for 2023. It also includes intel from close to 60 million monthly visits, complemented by insights driven by Google and other partners. 

“The nascent Southeast Asian e-commerce landscape is undergoing a significant digital transformation. Even as we brace for the potentially volatile climate ahead, it has become increasingly important for brands and retailers to connect with consumers in the right way,” said Gunjan Soni, Zalora Group’s chief executive officer. “Our flagship state-of-the-industry report helps to guide the industry through this unpredictable time and aid in their retail strategies as they navigate through the region’s diversity and build on the momentum.”

To know more about  Zalora’s Southeast Asia Trender Report 2022, click here.

Original Article : https://mb.com.ph/2023/03/04/sustainability-continues-to-influence-millennials-and-gen-zs-online-shopping/

Filipino retailers ahead of ASEAN peers in live-selling – report

Filipino retailers have quickly adopted live selling compared to their peers in the region as a major platform to push their merchandize to the market, according to a leading tech-enabled logistics company.

In its first ever white paper on Live Selling in Southeast Asia (SEA), the country’s leading tech-enabled logistics company Ninja Van Philippines revealed that 47 percent of Filipino sellers conduct sessions daily, versus weekly average in the region.

The white paper introduces Live Selling as one of the up-and-coming SEA e-commerce trends, and shares Live Selling insights collected from over 1,000 Ninja Van’s e-commerce sellers across Singapore, Malaysia, Indonesia, The Philippines, Thailand, and Vietnam.

While still a nascent industry, the company’s white paper showed that nearly one in three surveyed sellers have tried live selling.

Specifically, Ninja Van said that of those who are already live selling, nine in 10 prefer to do it themselves, and only one in 10 tap influencers to do live selling for them. Filipino sellers are among the most prolific live sellers, with 47 percent doing it daily – against a 31 percent regional average.

More Filipinos than their regional counterparts also believe that live selling brings in new business, with 74 percent saying that attracting new customers is a top driver for conducting live selling. A secondary driver would be to increase profit, with 52 percent of Filipino sellers saying live selling is more profitable than just posting items on marketplaces and apps.

“Live selling is an interesting marketing tactic for e-commerce sellers,” said Winston Seow, Chief Marketing and Enablement Officer, Ninja Van Group. “It’s the only tactic that can fast-track shoppers’ purchase journeys from awareness straight to conversion. Live selling also gives e-commerce sellers the ability to build relationships at scale with their shoppers, both new and existing.”

Filipino sellers can spend up to 14 hours weekly conducting live selling sessions, versus a regional average of up to six hours. Most of the early adopters of live selling are from low-involvement product categories such as Fashion, Beauty & Personal Care, Food and Beverages, as well as Home and Living.

While Shopee (27.0%)Facebook (25.5%), and TikTok (22.5%) are ranked as the top three live selling channels, the close margins signal that the champion has yet to emerge in SEA. This could be explained by the fact that on average, the surveyed SEA e-commerce sellers use two channels for Live Selling, presumably to maximize their outreach to live shoppers.

Sellers also use live selling as a means to build deeper connections with consumers. “Live selling allows us to easily and directly engage with our audience who have become regular viewers of our live sessions. We’ve also seen lower product return rates since we have started live selling,” says Nikka Arasa of Suniega Stainless Products Tradings, a stainless product manufacturer based in Nagcarlan, Laguna.

The white paper further explores the challenges of Live Selling, such as keeping Live Shoppers engaged, preparing on-set logistical requirements, as well as sales and post-sales arrangements, while providing recommended solutions.

The Live Selling in SEA white paper reaffirms the Ninja Van Group’s commitment to understanding the ever-changing landscape in order to provide e-commerce sellers with hassle-free delivery solutions.

Ninja Van Philippines plans to conduct their first-ever live seller accelerator program, designed to equip both new and would-be live sellers necessary skills and seed money to bridge their business to live selling platforms.

With its dominance in Southeast Asian e-commerce logistics, the Group continues to nurture an ecosystem that provides value-added services and tools to ensure a seamless experience for shippers and shoppers alike.

Launched in the Philippines in 2016, Ninja Van’s “Todo Hustle, No Hassle” commitment now serves 100% of the Philippine population, and has made it among the fastest-growing tech logistics companies in the country. Today, Ninja Van continues empowering businesses with fast deliveries, excellent service, and innovative logistics solutions.

Ninja Van Philippines operates the groups largest automated sorting facility in its Cabuyao, Laguna hub.

Original Article : https://mb.com.ph/2023/01/17/filipino-retailers-ahead-of-asean-peers-in-live-selling-report/

Consumer Sustainable shopping: Asda begins selling beer on tap in new supermarket refill zone scheme

Asda is serving beer on tap to customers in a trial that marks a first for a UK supermarket chain.

Eco-conscious drinkers will be able to take home reusable containers of beer poured fresh from the tap instead of picking up cans and bottles from shelves under the pilot scheme.

Visitors to Asda’s Milton Keynes, Buckinghamshire, superstore can choose from a list of 12 beers and ciders and have a member of staff pour their preferred option into either a one- or two-litre glass container to be taken away and consumed at home.

Customers can keep the containers, bring them back to be refilled or return them, at which point a deposit will be refunded.

If the pilot scheme proves successful Asda said it would consider selling draught beer at other stores across the UK from next year.

The brews on offer will be rotated, with “unusual beers from smaller and local breweries” showcased through the initiative. Craft on Draft, a specialist retailer of craft beers and ciders, will work in partnership with the supermarket to choose and get the beers on the shop floor. Asda said it had brought the business on board with the goal of offering shoppers lesser-known beers that aren’t widely available in other retailers, or in pubs.

The draught beer venture comes in the wake of a series of “refill zone” schemes at Asda, and elsewhere, and amid persistent consumer demand for brands and retailers to eliminate unnecessary packaging.

This summer Asda announced plans to make packaging-free shopping available at more of its stores after the introduction of a trial “refill zone” in a Leeds branch proved popular.

The initiative allows customers to do away with single-use plastic by inviting them to fill their own reusable containers with everyday groceries including cereal, pasta, laundry detergent and pet food. Demand for loose produce was so great that sales of some goods exceeded those of packaged items in some categories, Asda said of the original trial.

Waitrose was the first of the major supermarket chains to test with packaging-free areas in store, in 2019, and has been credited with helping to popularise “refill culture” in the UK.

While glass beer bottles and aluminum cans are widely recycled, environmental experts point out that it still requires energy to produce them in the first place, and their transportation also contributes to greenhouse gas emissions.

Asda spokesman Matt Harrison said of the trial: “The Craft on Draft team’s expertise in the hospitality industry will bring a range of drinks to our store that are unlikely to be found elsewhere and that complement our strong existing beers, wines and spirits offer.

The refillable element of the trial gives customers the chance to pick up a new tipple and make a small change to help them shop more sustainably in our Milton Keynes store.”

Original Article : https://inews.co.uk/news/consumer/sustainable-shopping-asda-beer-on-tap-supermarkets-refill-zones-1316789

DTI allows 17 business sectors to resume full operations

The government will allow operation at full capacity of business activities in 17 sectors, from mining and construction to film production and pet shops, in areas under general community quarantine (GCQ) as part of its efforts to rebuild the Philippine economy, the Department of Trade and Industry (DTI) announced on Friday.

In his Memorandum Circular No. 20-52, Trade Secretary Ramon Lopez said there was an increasing need “to provide stability for businesses, restimulate the economy amid the COVID-19 pandemic, and address the growing number of joblessness, poverty, and hunger incidence in the country.”

The new guidelines in the memo will take effect upon the circular’s publication and filing with the University of the Philippines Law Center.

“The DTI is authorized by the IATF (Inter-Agency Task Force for the Management of Emerging Infectious Diseases) to adjust operating capacity of businesses,” Lopez said, when asked whether the circular still needed approval.

100% workforce

Aside from mining and quarrying, those that will be allowed to operate with 100 percent of their workforce include financial services other than banks, such as money exchange, insurance, reinsurance and lending companies; legal and accounting; management consultancy; architecture and engineering; technical testing and analysis; scientific and research development; advertising and market research; computer programming, information services and related activities; and publishing and printing services.

In addition to government or construction projects also allowed were film, music and TV production; job recruitment for overseas; “other” services, such as photography, fashion, industrial, graphic and interior design; wholesale and retail trade of vehicles; repair of motor vehicles, including car wash; nonleisure activities in malls and commercial centers; and nonleisure wholesale and retail.

The last category covers hardware stores; clothing and accessories; bookstores and school and office supplies; infant care supplies; pet shops, pet food and pet care supplies; information technology, communications and electronic equipment; flower, jewelry, novelty, antique, perfume shops; toy stores except their playgrounds and amusement areas; music stores; art galleries (selling only); and firearms and ammunition trading.

Lopez said that based on regular monitoring activities conducted by the DTI, the businesses in the new list covered in his memo had not been allowed to fully operate under GCQ but were found “compliant with the minimum public health and safety protocols.”

The DTI also considered the Department of Health’s assessment that it now took longer for the number of COVID-19 cases to double in places under GCQ and that the rate that critical care facilities were being used had decreased.

The DTI will also allow barbershops and salons to operate up to 75-percent capacity but “subject to strict physical distancing.”

Dine-in services at restaurants and fast-food establishments are now allowed at more than 50 percent of capacity also with strict physical distancing.

Dine-in, delivery services

Dine-in as well as delivery services “shall be allowed to operate up to 24 hours a day, as far as practicable, to augment the additional operational requirements and serve the needs of the public, while enhancing income opportunities for workers,” Lopez said.

At the onset of the pandemic, the government, through the IATF, adopted guidelines that classified various industries based on the extent to which business establishments would be allowed to operate under varying grades of community quarantine—enhanced community quarantine (ECQ), modified ECQ, GCQ and modified GCQ.

The Omnibus Guidelines for the Implementation of Community Quarantine listed which industries—or subindustries in agriculture, manufacturing and services—would be allowed to operate at full capacity, partial capacity or not at all.

The industries or economic activities were prioritized and categorized based on whether their output was essential. Thus, establishments engaged in health services were allowed to operate fully even under ECQ. Others not considered essential, such as barbershops and salons, are allowed only partial operation even under GCQ.

The main consideration has been the risk of infection, not the number of people a business employs.

Read original article: https://inqm.news/huvi

$300,000 minimum investment approved

For Foreign retailers coming in.

Congress and the executive branch have agreed in principle to lower the minimum paid-up capital for foreign retailers to $300,000 and the minimum per store investment of $300,000 saying this would be attractive enough for foreign investors while protecting small Filipino retailers.

Marikina Representative Stella Quimbo, Board of Investments legal counsel Atty. Elyjean Portoza, and Philippine Competition Commissioner Johannes Bernabe agreed to amend the Retail Trade Liberalization Act of 2000 during a webinar organized by the American Chamber of Commerce of the Philippines.

Under the 20-year old law, the minimum paid-up capital requirement for foreign retailers was pegged at $2.5 million and the minimum investment per store at $830,000.

There have been various pending bills proposing to lower these threshold capital requirements to $200,000 and $150,000.

BOI Counsel Portoza cited the need to adopt the middle ground figures because local retailers are still faced with capability issues to face foreign competition.

Portoza said that having a uniformed $300,000 minimum paid-up requirement and minimum $300,000 investment per store would provide more consistency in its proposed amendments.

Local retailers are also challenged in balancing the production of high-quality goods and competitive pricing.

But setting high capital requirements might discourage the entry of new players in the market.

Nevertheless, she said that the amendments to the investment threshold will encourage the production of high-quality products at a competitive price

Liberalizing domestic retail is also expected to result in the increased flow of capital into the country as an opportunity that would provide them access to needed capital.

It will also promote sound business practices/technological transfers.

On the proposal to include retail e-commerce, the BOI said they have already adopted a policy requiring all those engaged in retail to secure board approval for them to be able to engage in retail online.

For the regulation of the e-commerce platform operator, which is not engaged in retail trade, should not be covered.

The BOI is of the opinion that the retail e-commerce platform operator could be covered by another legislation.

On the proposed review of the minimum paid requirement every 5 years, the BOI said this is just basically institutionalizing automatic review.

But BOI said it might be seen as a very short period and investors might look at it as an unstable policy because investment plans could take longer.

It could discourage investors from fear that policies may change while they are still in the research or implementation stage.

“By the time they are ready to invest there is a possibility, by reason of the provision of this review, rules will change,” she said.

Read original article: https://mb.com.ph/2020/09/12/300000-minimum-investment-approved/

Philippines bans
 single-use plastic 
in all government offices

MANILA, Philippines – Single-use plastics will now be banned in all government offices in the country, according to the Department of Environment and Natural Resources (DENR).

In a statement issued Monday, the DENR said the National Solid Waste Management Commission (NSWMC) has approved Resolution No. 1363, series of 2020, banning “unnecessary” single-use plastics.

It covers national government agencies, local government units, and all other government controlled-offices.

The resolution directs the DENR to “prepare and implement” the ban on single-use plastic products, including cups less than 0.2 millimeter in thickness, drinking straws, coffee stirrers, spoons, forks, and knives.

The ban also covers “labo” or thin and translucent plastic bags, and thin-filmed sando bags lower than 15 microns.

“The NSWMC resolution is a major step to curb the use of single-use plastic items that pollute our waterways, kill marine life and contribute to our country’s increasing solid waste,” Environment Secretary Roy Cimatu, who chairs the NSWMC, said.

The DENR will come up with specific guidelines for the implementation of the plastics ban, which forms part of the government’s “solid waste avoidance and minimization strategy,” according to Cimatu.

DENR Undersecretary for Solid Waste Management and LGUs Concerns Benny Antiporda, meanwhile, defended the NSWMC for initially including only eight single-use plastic items in the ban.

“It was the decision of the NSWMC to come up with a balanced judgment on the use of single-use plastics by taking into consideration that we can only ban those that have available alternatives,” said Antiporda, who is also the alternate NSWMC chair.

He cited Section 29 of Republic Act 9003 or the Ecological Solid Waste Management Act of 2000, which provides that “‘non-environmentally acceptable products shall not be prohibited unless the [NSWMC] first finds that there are alternatives which are available to consumers at no more than 10 percent greater cost than the disposable product.”

The NSWMC is an inter-agency body under the Office of the President mandated to oversee the implementation of solid waste management plans and prescribe policies to achieve the law’s objectives.

It is composed of the DENR, the Department of Agriculture, Department of the Interior and Local Government, Department of Public Works and Highways, Department of Science and Technology, and Department of Trade and Industry.

Its members also include the League of Cities of the Philippines, Metropolitan Manila Development Authority, Philippine Information Agency, Technical Education and Skills Development Authority, and representatives from the recycling and manufacturing/packaging sectors.

Read original article: https://www.untvweb.com/news/barangay-tanods-turn-over-philippine-cobra-found-in-vacant-lot-to-denr/

DTI: Safe to hold nationwide mall sale amid coronavirus outbreak

Metro Manila (CNN Philippines, February 19) — The nationwide shopping sale in the Philippines will push through in March despite safety concerns due to the coronavirus disease (COVID-19) outbreak, Trade Secretary Ramon Lopez said on Wednesday.

He said Health Secretary Francisco Duque III is working with the Tourism and Interior Departments to ensure the safety of the public in these populated areas, adding precautionary measures such as proper handwashing and cough etiquette should be practiced.

“These are practices that are really encouraged. Definitely we should be back to normalcy when we have to go out we have to do our regular business and encourage just to maintain the growth, momentum we have. We should not worry on the COVID-19. Precautionary measures lang ang kailangan (There’s no need to worry as long as we use precautionary measures),” he told CNN Philippines.

The Philippines is set to hold its first month-long nationwide shopping mall sale to attract local and foreign tourists to promote domestic tourism. This is seen to bring in revenue for businesses to help the tourism slump caused by the imposed travel ban and aviation fears.

“We basically just tried to attract more activities, more events at the malls and essentially to address the declining tourism revenues so instead of foreign tourism as you know is affected by the COVID 19, we’re promoting more domestic tourism,” Lopez said.

The Department of Tourism is mounting different activities to promote local tourism. It is working with the office of President Rodrigo Duterte to bring him to the country’s major islands.

In February alone, the country is expecting to lose P14.8 billion in tourism or a total of P42.9 billion in revenue if the travel ban on China, Hong Kong, and Macau lasts for three months.

Read original article: https://cnnphilippines.com/news/2020/2/19/Nationwide-mall-sale-coronavirus.html

Int’l retailers continue to flock to PHL

INTERNATIONAL RETAILERS continued to flock to the Philippines last year, eager to sate Filipinos’ appetite for new brands and restaurants, according to a report by the local unit of real estate services firm Cushman & Wakefield.

In its January report entitled “How Global Brands are Shaping the Metro Manila Retailer Landscape,” Cushman & Wakefield Phils., Inc. said 34 new foreign brands entered the country between January and November 2019. This brought to 102 the total number of international brands that have set up shop in the Philippines since 2017.
“One of the segments that are directly benefiting from the sustained growth of the Philippine economy is the retail sector. Evidently, amidst a slowdown in retail activities in other parts of the world, foreign retailers continue to venture and thrive in the local retail scene,” it said.
Most of the new brand entries are mid-tier food and beverage (F&B) retailers, Cushman & Wakefield noted.
Among these are American brands such as Shake Shack, Popeyes Louisiana Kitchen, and Panda Express, as well as Japan’s Menya Kokoro, FRNK, and Shari Shari Kakigori House. Taiwan’s The Alley, Hong Kong’s Hui Lau Shan, and Sri Lanka’s Ministry of Crab also recently set up shop in the country.
“With competition, reinforced by the advent of strong concepts… the food services market remains attractive to international brands attributable to the country’s ideal demographic make-up,” Cushman & Wakefield said.
Data from Cushman & Wakefield Research showed food and beverage brands accounted for 68% of new brands that entered the Philippines from January to November 2019, followed by clothing and apparel brands at 15%.
The Philippines has also attracted a growing number of Asian retailers, particularly from Japan (17 brands) and Singapore (12 brands).
“Asian brands are strengthening their grip in the food services industry as they focus on bringing F&B concepts in the market,” Cushman & Wakefield said.

MORE MALLS

International retailers are eager to take advantage of the Philippines’ continued economic growth, young population, growing middle class, improving ease of doing business and booming tourism, Cushman & Wakefield said.
Also, shopping mall space is projected to hit 9.8 million square meters (sq.m.) in 2022 through expansions in the so-called Bay Area that covers Manila, Pasay, and Parañaque. As of the fourth quarter of 2019, the supply of mid- to high-end malls in Metro
Manila stood at 8.9 million sq.m.
“The expansion of shopping mall developments in the Bay Area is also in response to the vibrant real estate activities brought about by the rapid growth of real estate demand coming from the Philippine Offshore Gaming Operations (POGO) and the IT-BPM sectors,” Cushman & Wakefield said.
Monthly rent in key malls in Metro Manila is also relatively cheaper than its regional peers at $48 (about P2,440) per sq.m., Cushman & Wakefield said. To compare, monthly mall space rent in Indonesia is $70 per sq.m.; $127 per sq.m. in Thailand; and $165 per sq.m. in Vietnam.
Moving forward, Cushman & Wakefield said it is important for retailers to continue innovating to remain relevant, offering various activities in shopping malls.
“The strong economic fundamentals of the Philippine economy are seen to sustain the growth trajectory of the major demand drivers of the retail sector. The local retail scene will also continue to defy the global retail headwinds… as the Filipinos see retail establishments to be more than a place to shop. Shopping centers in the country had become essential structures also for socialization, leisure, and entertainment,” it said.
“However, the challenge would be on how the retailers will be able to keep up with the increasing competition with new concepts incessantly being introduced in the market and how they can satisfy the increasing complexity of consumer preferences,” it added.


Read original article: https://www.bworldonline.com/intl-retailers-continue-to-flock-to-phl/

Instacart sees 2020 as ‘as the year of grocery pickup

Enhanced Instacart Pickup service now live at 1,500 supermarkets in 30 states Instacart is doubling down on click-and-collect online grocery service with an upgraded Instacart Pickup product and a nationwide rollout to retailers by the year’s end.

To support the expanded grocery pickup business, San Francisco-based Instacart on Tuesday named company veteran Sarah Mastrorocco as general manager of Instacart Pickup, a newly created position.

Currently, Instacart Pickup is available at more than 1,500 stores in 30 states through over 50 grocery retailers, including Albertsons, Publix Super Markets, Wegmans Food Markets, Schnucks Market, Price Chopper, Gelson’s Markets, Shop ‘n Save and The Fresh Market. Plans call for the service to be live at supermarkets in all 50 states by the end of 2020, Instacart said.

“2020 is the year of pickup. For our retail partners, we’ve seen Instacart Pickup become a gateway to growth in a margin-thin industry,” Instacart President Nilam Ganenthiran said in a statement. “Our pickup product is also becoming a significant revenue contributor for our retail partners, growing customer basket size by an average of 15% and accounting for an average of 20% of a retailer’s total Instacart store sales.”

Instacart said its “reimagined” pickup product has launched gradually at grocery retailers in recent months and is now available across the United States and Canada. Among the key new features is Smart Storefronts, which enables customers to view
delivery and pickup options from one digital storefront for each of the grocers they shop on the Instacart platform. As a result, users can now toggle between delivery and pickup options to see the latest inventory by store and compare time windows for both.

The updated Instacart Pickup also facilitates collecting after clicking. Pick Your Pickup Mapping functionality allows customers to view and choose the pickup location most convenient to their route that day, such as when coming from home, work, soccer
practice and elsewhere. In addition, customers can now enable location-based notifications, known as On The Way Alerts, to let their store know when they’re on the way and getting close. That allows in-store shoppers to be ready and waiting for
Gelson’s has expanded its partnership with Instacart to add pickup to all of its store locations.

“At Gelson’s, Instacart Pickup is an integral part of the way we’re evolving to meet the changing needs of our customers, who appreciate the flexibility and affordability that comes with a curbside offering. We recently expanded our partnership with Instacart to add pickup, in addition to delivery, across 100% of our store locations,” said John Bagan, chief merchandising officer at Encino, Calif.-based Gelson’s Markets. “With this new partnership, customers can now have groceries and household essentials as well as beer, wine and spirits ready for same-day pickup. While still early days, Instacart Pickup is growing double-digits for us quarter over quarter, making it clear how much our customers value — and have come to rely on — this new experience.”

Other new Instacart Pickup features include customized navigation, which sends customers to the mapping app of their choice to automatically direct drivers from their current location to the store. Users, too, can now share their order details with friends
and family to designate another driver for an order pickup. Instacart added that it’s also continuing to expand alcohol pickup service, currently offered via 20-plus retail partners, including Aldi, BevMo!, Publix, Save Mart, Sprouts Farmers Market and Wegmans.

“We first partnered with Instacart to bring Cub stores online with delivery in 2015 and, based on the overwhelmingly positive customer response, last year we expanded ourInstacart partnership to include pickup across nearly 100% of the Cub store footprint,” according to Darren Caudill, senior vice president of sales, merchandising and marketing at Minneapolis-based Cub Foods. “Cub Foods customers are shopping online more than ever before, and having a seamless pickup experience is an important part of the digital offering we’re building for those loyal customers. It’s also been a boon for our business. We’ve seen our pickup business double in the last three months alone.”

Instacart said it’s launching pickup service at hundreds of stores monthly and expects to more than double the number of locations offering the service this year.

“Instacart’s broader business continues to grow at an incredible clip, with pickup as our fastest-growing product,” noted Ganenthiran. “With the completed rollout of the new Instacart Pickup and the appointment of Sarah as our new GM, we’re laying the groundwork now to prepare for another year of triple-digit growth. By year-end, we expect to have the largest pickup retail footprint in North America and, in the coming years, to grow Instacart Pickup into a multibillion-dollar business.”

In her new role, Mastrorocco (left) will work with partners across the Instacart organization to oversee and scale the fast-growing pickup operation, the company said. She joined Instacart nearly six years ago as the first member of the business
development team and then served in various leadership posts in such areas as catalog and account management. Most recently, she was vice president of business development. Before coming to Instacart, Mastrorocco was a member of PepsiCo’s
Global Operations Group, working on direct-store delivery operations in North and South America, and served on Frito-Lay North America’s strategy and M&A team.

“As we’ve come to understand the massive growth opportunity ahead for this product, it made sense to deepen our commitment to Instacart Pickup and grow our team to prepare for a year of expansion and innovation in the space,” Mastrorocco told
Supermarket News. “I’m thrilled to have the opportunity to lead this work — which is powered by a very talented group of people, including product managers, machine learning engineers, data scientists and operations researchers — to better serve the pickup business and deliver more innovative products for customers.”

Instacart Pickup debuted at a handful of retail partners in 2018, and last year Instacart doubled the number of retailers and tripled the number of states offering the service. Mastrorocco reported that pickup accounts for 20% of a store’s overall Instacart sales within four to eight weeks of the service’s launch.

“Today, we have more than 350 grocery and retail partners on our marketplace, and more than 50 of those now offer pickup as an option. That’s a lot of green pasture to power pickup for our industry,” she said.

For consumers, online grocery pickup is a natural evolution from home delivery, Mastrorocco added. “The growth we’re seeing is rooted in what we’re hearing from our customers. Consumers are in the driver’s seat more so than ever, and pickup gives
them one more highly flexible and affordable option to choose from,” she said. “Whether they’re doing their weekly shop, stocking up with pantry essentials, or shopping for a special recipe, people love being able to choose how to get what they want.”

On the delivery side, Instacart’s service is available at nearly 25,000 stores in more than 5,500 cities in the U.S. and Canada, serving over 85% of households in the U.S. and more than 70% of households in Canada.

Read original article: https://www.supermarketnews.com/online-retail/instacart-sees-2020-year-grocery-pickup