Retail

Aldi To Test Home Delivery Via Instacart

Aldi, the discount grocery chain, is gearing up to test home delivery with Instacart at the end of August.

According to a report,  if the pilot goes well the test will expand to parts of Atlanta, Dallas and Los Angeles. The latest move is part of the company’s big expansion plans. In June it acquired around 1,700 stores and plans to invest $3.4 billion to expand into 2,500 locations around the country by the end of 2022. Its aim is to become the third biggest grocery chain in the U.S., the report said.

“We pioneered a grocery model built around value, convenience, quality and selection, and now Aldi is one of America’s favorite and fastest growing retailers,” said CEO Jason Hart back in June, according to the report. “We’re growing at a time when other retailers are struggling. We are giving our customers what they want, which is more organic produce, antibiotic-free meats and fresh healthier options across the store, all at unmatched prices up to 50 percent lower than traditional grocery stores.”

Scott Patton, Aldi’s vice president of corporate buying said the grocery chain’s move to test home delivery with Instacart was made ahead of Amazon’s purchase of Whole Foods. That is counter to reports that said Aldi’s move was driven by that deal. Amazon is expected to replace Instacart which has gotten investments from Whole Foods and handles its home deliveries.

In May, the company revealed plans to spend $1.6 billion on U.S. expansion and remodeling efforts. By the end of 2018, Aldi reportedly looks to remodel 1,300 U.S. stores and to open 400 new stores. “We are re-merchandising, remodeling and enhancing our product range and are focused on gaining volume so more customers start their shopping at Aldi and we are able to complete their shopping lists more so than we have in the past,” Hart told Reuters at the time. Hart, who noted that Aldi’s U.S. sales have doubled in the last five years, has also pledged that Aldi will change prices more frequently to respond to rivals if need be. About 90 percent of Aldi’s products are private-label, which enables a greater pricing flexibility for the supermarket chain.

——————————–

Latest Insights:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. In the November 2019 Mobile Order-Ahead Report, PYMNTS talks with Dan Wheeler, Wahlburgers’ SVP, on how the QSR balances security and seamlessness to secure its recently launched WahlClub loyalty program.

Click to comment

TRENDING RIGHT NOW